Property taxes on manufacturing facility are classified as manufacturing
costs. Manufacturing cost is being defined as the overall cost from the
consumed resources in which are used when making a product that is to be laid
out and to be serve to the consumers.
Answer:
True
Explanation:
Section 351 (a) establishes that no gain or loss should be recognized when property is transferred to a corporation:
- in exchange of stock in that corporation (might receive common stock or share class stocks)
- as soon as the exchange is complete, the new stockholder must be in control of the corporation.
Not all common stocks have the same voting rights, that is why they are divided into share classes which assign separate voting rights or powers. Section 351 does not include preferred stocks.
Answer:
This means that Kimberlei's GDP is <em><u> less sensitive than </u></em> Clarkistan's GDP to fluctuations in the components of total spending.
Clarkistan's economy is <em><u>more </u></em>sensitive to fluctuations in GDP than Kimberlei's economy. This is because the personal income tax has <em><u> reduced </u></em> Kimerlei's multiplier.
Explanation:
As Kimberlei multiplier is lower, the government spending fluctuation will have a lower impact than in Clarkistan as the goverment spending multiplier in the latter is higher thus, a fluctuation increases or decrease the GDP in a higher proportion.
Clarkistan Economy is more sensitive as their government has a higher multiplier when it decreases for recessions it will increase by a higher amount
while Kimberlei as the income tax decreases th effect of the multiplier It is lower. thus the change in GDP is also lower
True it is a non market transaction
Answer:
Explanation:
Marginal propensity to consume (MPC) = Change in consumer spending / Change in disposable income.
= (380 - 180) / (350 - 100)
= 200 / 250
= 0.80
Marginal propensity to save (MPS) = 1 - Marginal propensity to consume (MPC) = 1 - 0.80 = 0.20
Autonomous consumption (A) = Consumption spending (C) - Marginal propensity to consume * Disposable income.
= 180 Million - 0.80 * 100 Million
= 180 Million - 80 Million
= $ 100 Million.
Aggregate consumption function = 100 Million + 0.8 * YD
YD - disposable income
