Answer:CPI, GDP Deflator
Explanation:CPI(consumer price index) is a macroeconomic measure used to determine the level of inflation in countries like the United States of America.
GDP Deflator is also a macroeconomic measure that measures the price level of all the new products produced domestically within a country in a specified year or period.
Both GDP DEFLATOR AND CPI ARE VERY USEFUL IN DETERMINING THE PERFORMANCE OF AN ECONOMY AS GDP DEFLATOR MEASURES DEFLATION,CPI MEASURES PRICE INFLATION IN A SPECIFIC OR BASE YEAR UNDER REVIEW.
Based on the information given, the corporate bond will be recommended for Mr. Brown while the municipal bond will be recommended for Mr Black.
<u>Mr Brown:</u>
The after-yield tax on corporate bonds will be:
= Before tax yield × (1 - tax rate)
= 4% × (1 - 0.10)
= 3.60%
After tax yield on municipal bond will be:
= 3.5% × 1 = 3.5%
The corporate bond is recommended.
For <u>Mr. Black</u>
The after-yield tax on corporate bonds will be:
= 4% × (1 - 0.35)
= 2.60%
The after-yield tax on municipal bonds will be:
= 3.5% × 1
= 3.5%
Therefore, the municipal bond is recommended.
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Answer:
37,000 units
Explanation:
The computation of the total equivalent units for direct material is shown below:
= Transferred to finished goods during the month of July + Ending work in process during the month of July - Inventory in process as on July 1
= 37,500 units + 3,500 units - 4,000 units
= 41,000 units - 4,000 units
= 37,000 units
We simply used the above formula so that the total equivalent units for direct materials using the FIFO method could come
