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Rufina [12.5K]
3 years ago
5

Suppose Cho is considering emigrating from her home country.A fictional country of Flaxon has the same policies and institutions

as Cho's home country, except that it has greater price stability. If Cho's decision to emigrate is based solely on the prospects for economic growth, she would
Business
1 answer:
Jlenok [28]3 years ago
3 0

Answer: Migrate to Flaxon

Explanation:

If Flaxon country has the same policies and institutions as Cho's home country but also has greater price stability, Cho would emigrate if she wanted more economic growth because Price stability contributes to the growth of the economy.

Price stability means that the country is not going to experience inflation (deflation) that is too high (low) and lasts too long as well as one that is erratic.

This benefits the economy because;

  • Savings will not be easily eroded by inflation.
  • Decisions can be made easier as inflation rates can be better predictable. For instance, people can save or invest at a particular rate that they know will bring them real return as it will be over the inflation rate.  
  • Unexpected deflation will not cause companies to make losses which can increase unemployment and company shutdowns and,
  • Financial institutions can borrow out loans at more stable rates for investments because in a less stable market they would have to charge higher rates to ensure that they do not make losses should inflation change. These stable rates will attract companies and individuals who will use the funds for investment and improve the economy.
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Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $575,000. They moved into the home on February 1 of year
Julli [10]

Answer:

Steve and Stephanie Pratt

a. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

b. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

c. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

d. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

Explanation:

a) Data and Calculations:

Initial purchase cost of a home in Spokane = $575,000

Selling price of the home on June 30 of Year 5 = $927,500

Recognized gains = Selling price of the home Minus Initial Purchase Cost

= $352,500 ($927,500 - $575,000)

8 0
2 years ago
Hungry lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per share of $.43. How many shares of stock
Degger [83]

Answer: The number of shares outstanding is approximately 170702.32 shares.

We have :

EPS                       $0.43

Net Income       $73,402

The formula for computing EPS is

EPS = \frac{Net Income}{Number of shares outstanding}

Substituting the values from the question in the formula above we get,

Number of shares outstanding = \frac{73402}{0.43}

Number of shares outstanding = 170702.3256

6 0
3 years ago
Read 2 more answers
If a buyer has a critical or more important use of the product then the inelasticity of the demand increases. what factor is aff
Ghella [55]

If a buyer has a critical or more important use of the product then the inelasticity of the demand increases, then it is the importance of the product affecting elasticity.

A product is considered inelastic if its demand remains static even if there is a significant price change. It is generally the basic necessity product that are considered as inelastic product. Inelastic demand of the product ensures the adequate supply of goods. In inelastic demand case the quantity demanded is same despite the change in price and the demand curve is graphed out as a vertical line. These goods have no substitutes ensuring the quantity demanded remains unaffected.

In case of fall in the price, the demand remains same, generating less revenue. On the other hand, if price hikes, the business earns significant profit.

To learn more about inelastic demand click here:

brainly.com/question/13572905

#SPJ4

3 0
1 year ago
Jay, a single taxpayer, purchased an annulty to help provide income during his retirement. He paid $36,000 for the annuity that
Rufina [12.5K]

Answer:

d. All of the last 12 payments he received are taxable.

Explanation:

In the case when the life expectancy is 180 months and collected 192 payments prior he died

So according to the question, all the 12 payments would be received are taxable

Here the payment that received for 180 months would not be involved in the gross income and the remaining 12 payment would be taxable

Therefore the option d is correct

4 0
3 years ago
ABC Corporation has declared a rights offering to stockholders of record on Thursday, October 22nd, payable on Friday, November
AysviL [449]

Answer:

November 6th is the last date to exercise the rights.

Explanation:

The shareholders have right to sell the rights to other shareholder, for which the shareholders need to exercise the rights before the right issue. If the shareholders doesn't makes any exercise of right issue before date then he is not entitled to rights anymore. The last date is the date on which the payment is made.

7 0
2 years ago
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