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3 years ago

How do future expectations of an improving economy affect aggregate demand

Business

1 answer:

Vanyuwa [196]3 years ago

3 0

Answer:

Increase the aggregate demand. This means, that the total demand for goods and services within a particular market will increase

Explanation:

The future expectations of an improving economy increase the aggregate demand. This means, that the total demand for goods and services within a particular market will increase as there is more trust in the market.

The rise in the income is another important factor for the aggregate demand to increase. With improving expectations the consumers will think that they income will improve and therefore their consumption levels.

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Last year, a corporation purchased an office building for $220,000, of which $30,000 was allocated to the land on which the buil

Alex_Xolod [135]

Answer:

$4872

Explanation:

Given: Purchase price of an office building= $220000.

Out of cost building, $30000 was allocated to the land.

Remember, As per current US Tax code, commercial building can be depreciated over 39-year straight-line for commercial property.

Now, calculating the current year depreciation deduction.

We know, land is not depreciable.

∴ Cost of building= $Purchase\ price\ of\ building - cost\ of\ land$

⇒ Cost of building= $\$ 220000 - \$ 30000$

∴ Cost of building= $\$ 190000$

Next calculating depreciation using straight line method ignoring salvage value.

Depreciation deduction= $\frac{\$ 190000}{39}$

∴ Depreciation deduction= $\$ 4872$

Hence, The corporation's current year depreciation deduction for the building is $4872

5 0

3 years ago

Karen, an accrual basis taxpayer, sold goods in December 2019 for $20,000. The customer was unable to pay cash. So the customer

Step2247 [10]

Answer:

Karen must recognize income of $20,000 in 2019 and $500 in 2020

Explanation:

Accrual basis of accounting states that income must be recognized in the period when it is earned and expenses must also be recognized when it is incurred.

Therefore, since the goods was sold in December 2019 and $500 interest was paid with the principal in April 2020, Karen must recognize income of $20,000 in 2019 and $500 in 2020.

3 0

3 years ago

Explain why it is worthwhile to keep a theater open during the afternoon, at a time when there are fewer customers than in the e

Naily [24]

A thearter is kept open for an advertisement to allow people to view or have an idea of the movies to be shown in the evening.

<h3>What is a business strategy?</h3>

Business strategy is a list of actions and decisions made by a company or organization to reach its goals and objectives.

Opening theater in the afternoon is a business strategy and it is an approach to create awareness of what their programs will be.

Therefore, A theater is kept open for an advertisement to allow people to view or have an idea of the movies to be shown in the evening.

For more information on business strategy kindly check

brainly.com/question/24967768

8 0

2 years ago

A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan

lara31 [8.8K]

Answer:

1003

Explanation:

Given:

Period= 30 years, Loan amount= $200,000,

Payments- Monthly,

Teaser rate for first 2 years = 4%,

Annual payment cap=5%, Composite rate on reset date= 6%

Annual rate for 2 years =4%

Monthly rate will be 4/12 = 0.3333% = 0.003333

n=30years=360 months

Monthly payment for first 2 years = $Pr(1+r)^n/((1+r)^n-1)$

= $200000\times0.0033\times1.033^{360}/(1.033^{360}-1)$

= 954.83

or by Excel function = PMT(0.003333,360,200000,0) = 954.83

Loan balance after 2 years = PV(0.003333,336,-954.83,0) = 192,812.36 or

Balance= $A(1+r)^n-PMT\times(1+r)^n-1)/i$

= $200000(1.0033)^{24}-954.83(1+0.003333)^{24}-1)/0.003333$

= 192,812.36

Composite rate is 6% but payment is capped at 5%. So new payment from year 3 is 954.83×1.05=1002.57=1003

6 0

3 years ago

In 1992, the Enron Development Corporation, a subsidiary of the Houston-based energy company, signed a contract to build the lar

AfilCa [17]

Answer:

Option E is correct.

All of the above

Explanation:

This is an example of political risk since The current political party in Maharashtra-Shiv sena intervened and used Enron for its selfish interests. When US department of energy issued a statement that cancelling Enron could endanger other private FDI from USA, the same was again used to further its selfish interests. Finally Maharashtra renegotiated its contract with Enron.

3 0

3 years ago