Answer:
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Explanation:
Answer:
The correct answer is Option A.
Explanation:
A. Losses on the sale of longminusterm assets are subtracted from net income - This is incorrect because on losses on sale of an asset are usually added to the net income to avoid double-counting of income. Under the investing section of the cash flows, the proceed received on disposal is recorded there as inflow, if the losses realized on the disposal are subtracted, there would be a double-counting because the losses had already reduced the net income before.
B. Increases in current liabilities are added to net income - This is an inflow of cash, so it is usually added back.
C. Depreciation expense is added to net income - The explanation under Option A above applies but only that depreciation is a non-cash item, which already reduced the net income and it has to be added back to reinstate the net income.
D. Gains on the sale of longminusterm assets are subtracted from net income - Explanation under Option A applies.
If the U.S. government was concerned that the depreciating value of the US$ caused the Japanese government unstable, it would sell yen in the foreign exchange market. If successful the $/yen exchange rate would decline.
Explanation:
Yen that would increase market yen supply and market dollar demand, which would stabilise the dollar price. $/yen means the number of dollars for yen that may be purchased.
This value will decline as the dollar begins to appreciate.
The average Nikkei 225 fell by 7.2 percent relative to its April point at 14 May. And, in April, the yen increased to 109-110 from 112-113 to the dollar. The fall of the stock market did not cause the yen to rise for the first time. As the following chart shows, Japan's stock market downturn has been strongly influenced since 2004 by a high yen as a result of the increase in stock prices.
Answer:
C) Households may save part of the additional income from the tax cut
Explanation:
When we consider the total household income there is always a major part that is spent, this is called propensity to consume. It is defined as the proportion of total income that consumers are willing to spend.
But propensity to consume doesn't include 100% of household income, there also exists the propensity to save. That is the exact opposite, is the proportion of our income that we will save for future use.
Luckily for us all, the propensity to spend is usually much higher than the propensity to save. We have to remember that private consumption represents nearly 70% of the nation's GDP.
What households save goes to investment in GDP. Investment is always needed but it represents future growth of the GDP while consumption represents current growth of the GDP.
In monopolistic competition, a firm introduces a new and differentiated product and will temporarily have a <u>less elastic</u> demand for its product and is able to charge a <u>higher price than before</u>.
Monopolistic competition exists while many agencies offer competing products or services which are similar, but no longer perfect, substitutes. The limitations to entry in a monopolistic aggressive industry are low, and the choices of any individual company no longer directly have an effect on its competition.
The demand curve as confronted with the aid of a monopolistic competitor isn't always flat, but as a substitute downward-sloping, which means that the monopolistic competitor, just like the monopoly, can increase its price without dropping all of its customers or lower its price and advantage greater customers.
A monopolistic market is a market structure with the characteristics of a natural monopoly. A monopoly exists when one provider gives a particularly suitable provider to many purchasers. In a monopolistic marketplace, the monopoly (or dominant employer) exerts manipulation over the market, enabling it to set the charge and supply.
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