Answer:
The correct answer is (A)
Explanation:
People are more successful in housing business who invests for a longer period. Housing prices do not fluctuate rapidly which is why a long term investor who holds the house for a longer period will likely to earn greater profit compared to those who will hold the house for a short-term period. The short-term investor will earn profit but a small percentage whereas long-term investors will earn a greater profit which depends on how long they can hold on to the house.
Answer:
Machine K
Explanation:
The values can be better computed as:
Year 0 1 2 3
J 11000 1200 1`300
K 13000 1200 1300 1400
Using the PV Calculator
The Present Value (PV) for each year in Machine J is as follows:
Cashflow Year Present Value
11000 0 11000
1200 1 1085.97
1300 2 1064.68
Total 13,150.65
The effective annual cost = 
= $7628.16
Using the PV Calculator
The Present Value (PV) for each year in Machine K is as follows:
Cashflow Year Present Value
13000 0 13000
1200 1 1085.97
1300 2 1064.68
1400 3 1037.63
Total 16,188.28
The effective annual cost =
= $6566.92
Therefore, machine K is better to buy than machine J.
Answer:
B. Offset shifts in aggregate demand and thereby stabilize the economy.
Explanation:
Firstly about Fiscal Policy:
-Monitoring and influence of government to national economy by adjusting its spending levels and tax rates
-Based on the Keynesian economics which opines that the increasing or decreasing taxes or the same about public spending will impact significantly on the economy of the country.
-Fiscal Policy is the regulator of the inflation rate (2%-3% is normal for every economy) and in turn, this increase the rate of employment
Secondly about Monetary Policy:
- In most countries, central banks or central boards take the actions of plan about controlling process of the money in the country or money supplying estimations.
-Monetary policy is the management of money supply or the interest rates
-Monetary policy is the controlling of inflation, consumption, growth and liquidity of money
The mutual goals of these policies aim to establish and construct the perfect economic environment with the stable and positive growth of economy and, stable and low inflation rates. Moreover, the aim is the elimination of booms or fluctuations on the economy and to keep it stable as possible as.
