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3 years ago

How does an improvement in consumer confidence affect the consumption function and the aggregate demand curve?

2 answers:

3 0

If the consumers are further confident they will expend additional dollars at entirely earnings stage and the consumption function moves upward. This increase in expenditure reasons the aggregate demand curve to move to the right. The ceteris paribus is known as a alteration in interest rates reasons a movement alongside the investment demand curve.

DanielleElmas [232]3 years ago

3 0

If the consumers are more confident, they will spend more at entirely earnings stage, therefore, making consumption function goes up. This increase in expenditure causes the aggregate demand curve to move to the right. The ceteris paribus is known as an alteration in interest rates causes a movement alongside the investment demand curve.

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Assume General Electric Company reports the following footnote in its 10-K report. December 31 (In millions) 2016 2015 Raw mater

True [87]

Answer:

$ 244 million

Explanation:

Calculation for how much has GE saved in taxes by choosing LIFO over FIFO method for costing inventory

Tax rate Amount (In millions)

LIFO $ 10,315.00 35% =$ 3,610.25

FIFO $ 11,012.00 35% =$ 3,854.20

Savings in taxes $ (697.00) $ (243.95)

Hence,

Savings in taxes=$ 3,610.25 million-$ 3,854.20 million

Savings in taxes=($243.95 million)

Savings in taxes=($ 244 million) Approximately

Therefore the amount that GE saved in taxes by choosing LIFO over FIFO method for costing inventory will be $ 244 million

6 0

3 years ago

Bryce Corporation has pretax accounting income of $100,000. Bryce has interest on municipal bonds of $7,000. Depreciation for ta

Ket [755]

Answer:

$90,000

Explanation:

It is given that :

The pretax accounting income of Bryce Corporation 100,000

The interest on the municipal bonds - 7,000

The depreciation - 5,000

The difference in bad debt expense (3000-1000) <u> +2,000</u>

So the total income of Bryce Corporation $ 90,000

4 0

3 years ago

This occurs when a person or firm purchases new capital. This occurs when a person's income exceeds his consumption. Which of th

Lostsunrise [7]

Answer: Buying $200 stock in AT&T is an example of investment. As in this case the persons income exceeds his consumption and he buys new capital.

Borrowing $1000 from a bank to buy a car to use in business is also an investment as in this case buying a car is like investing in a cash flow producing asset, as the car will be an asset which will help earn money from the pizza business.

Explanation:

Roommate depositing $100 is an example of saving and not investing.

Taking out a mortgage and buying a house is an example of consumption and not investment.

3 0

3 years ago

The company uses up $5,000 of an existing asset and the company adjusts its accounts accordingly. this is an example of a(n)?

labwork [276]

The company uses up $5,000 of an existing asset and the company adjusts its accounts accordingly. This is an example of a deferral adjustment.

It is a deferral adjustment on account that a current asset had been used up, which means its miles deferred like supplies expenses are recorded on the year stop relying upon how much resources had been used in the course of the year.

Deferrals are adjusting entries for items bought earlier and used up in the destiny (deferred fees) or whilst coins are received in advance and earned inside the future (deferred sales).

The primary distinction between accrual and a deferral is that accrual is used to deliver forward an accounting transaction into the current period for recognition, whilst a deferral is used to put off such popularity until a later length.

Learn more about deferral adjustment here brainly.com/question/16967814

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5 0

1 year ago

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shtirl [24]

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3 years ago