Answer:
<h2>In this case,the answer would be option d. or an increase in taxes and at a given price level consumers feel less wealthy.</h2>
Explanation:
- Aggregate Consumption Expenditure is an important component or determinant of the aggregate demand(AD) which positively or directly affects the AD,meaning that a general increase in the aggregate consumption expenditure will increase the AD in the economy and vise versa.
- Now,an increase in income tax is evidently a bad news for the consumers or buyers in the economy as the disposable household income would decrease as a result and the consumers or buyers would have less money or income at their disposable to spend on various goods and services in the economy.
- Therefore,an increase in tax in this case would lead a fall in the disposable income of the consumers/buyers which will further lead to a decrease in the overall consumption expenditure in the economy.
- Hence,everything else held constant,as aggregate consumption expenditure decreases in the economy,the AD will also decrease consequently and the AD curve shift downward or leftward in the graphical illustration of the goods market.
An economic structure in which judgments about what to manufacture and in what amounts are determined by the markets consumers and retailers is known as a free-market system
This is further explained below.
<h3>What is
the free-market system?</h3>
Generally, A market economy is an economy in which choices about investment, production, and distribution to consumers are led by the price signals that are formed by the forces of supply and demand. This kind of economic system is known as a free market economy.
In conclusion, A free market system is an economic framework in which decisions on what to make and in what quantities are set by the customers and retailers in the market.
This kind of system is also known as a consumer-driven economy.
Read more about the free-market system
brainly.com/question/6750227
#SPJ1
Full Question :
If the interest rate is 10%, what is the present value of a security that pays you $1100 next year, $1230 the year after, and $1331 the year after?
Answer:
The Present Value is $3,016.53
Explanation:
Kindly find attached for details.
Answer: I)Accrued ReVenue /Service Revenue.
2.-Prepaid Expenses/ Insurance Expenses
3.No Entry
4.Prepaid expenses /depreciation expense
5.Accrued Interest payable/Interest Expenses
6.Accrued expenses/ Interest expenses.
7.Unearned expenses/ Service Revenue
Explanation:The type of adjusting entry/ the related account in the adjusting entry is given below
a)For Accounts Receivable---Accrued ReVenue /Service Revenue.
(b) For Prepaid Insurance---Prepaid Expenses/ Insurance Expenses
(c) Equipment ---- Equipment Exoenses. Equipment is a long-term asset that will not last so the cost of equipment is recorded in the account Equipment. No entry is needed in this account.
(d) For Accumulated Depreciation Equipment-----Prepaid expenses /depreciation expense
e) Notes Payable : Accrued Interest payable/ Interest Expenses
(f) Interest Payable--- Accrued expenses/ Interest expenses
(g) Unearned Service Revenue--Unearned expenses/ Service Revenue
