Answer:
The correct answer is C. when income increases, demand for a normal good increases while demand for an inferior good falls.
Explanation:
The normal good is that whose quantity demanded for each of the prices increases when the rent increases. A lower good is one whose quantity demanded decreases when income increases. The inferior goods are usually those for which there are higher quality alternatives. When it comes to a normal good, increasing the income of the consumer increases the quantity demanded at each price. Causing a shift in demand to the right.
Answer:
then your credit does not go into default
Explanation:
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Answer:
C) over time inflation will fall back down to the inflation target.
Explanation:
In the scenario, there is a positive aggregate demand shock which will lead to inflation because prices of goods will rise as aggregate demand increases with supply being unchanged
<u>A demand shock is a sudden event that increases or decreases demand for goods or services temporarily. A positive demand shock increases aggregate demand and a negative demand shock decreases aggregate demand. </u>
<u>Therefore there will be an initial inflation with the shock but since demand shocks are temporary and the central bank commits to an inflation rate target, then over time inflation will fall back down to the inflation target.</u>
Explanation:
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Answer:
c. $87,000
Explanation:
The computation of the Arthur's basis in the partnership interest at the end of the year is shown below:
= His share of partnership liabilities + net operating income share + increased share in liabilities - distributed amount
= $60,000 + $12,000 + $20,000 - $5,000
= $87,000
Net operating income share is
= $40,000 × 30%
= $12,000
We simply applied the above formula
