Answer:
The individual will plan to spend or consume more of his wages than usual; since he believes there'll be a tax cut.
Explanation:
C = consumption
W = wages
Note: No graph is attached to the question so we can't make use of certain information in the question.
Suppose there is an announced change in tax policy - a tax cut/reduction - and a tax increase later; <em>what is the impact of this policy on consumption if the consumer believes that the policy will be implemented?</em>
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Reasoning as an economist, the first reaction of a rational consumer is to begin to consume more since he believes the tax reduction policy will be implemented.
NOTE that sometimes the government or financial ministry in a country intentionally announce policies just so citizens can begin adjusting their consumption and investment patterns in line with them. They do not necessarily follow up with implementation of the policies.
So for a consumer who believes that there'll be a tax cut, he'll be excited and will either consume more of his present wage or consume all and borrow or dissave.
Answer:
The Interest Rate and how much you owe.
Explanation:
If you have a rate of 10% a month
and you owe $100, the next month you owe $110
or if you owe $50, then next month you owe $55
Answer:
Please find solutions in the attached images
Explanation:
I have attached images of my journal entry solutions to this question as required.
Answer:
Dr Bad Debt Expense $12,760
Cr Allowance for Doubtful Accounts $12,760
Explanation:
Based on the information given the adjusting journal entry that Tanning Company will make if the Allowance for Doubtful Accounts has a credit balance of the amount of $1,400 before adjustment will be :
Dr Bad Debt Expense $12,760
Cr Allowance for Doubtful Accounts $12,760
[(4%*$354,000)-$1,400]
Answer:
9%
Explanation:
According to the given situation, the solution of return on investment is shown below:-
Return on investment = (Net operating income ÷ Average operating assets) × 100
now, we will put the values into the above formula
= ($45,360 ÷ $504,000) × 100
= 0.09 × 100
= 9%
Therefore for computing the return on investment we simply applied the above formula.
