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3 years ago

Given a fixed nominal interest rate on a loan, unanticipated deflation:

1 answer:

6 0

Deflation means that your money has more buying power, thus it decreases the burden of paying off your loan because (in theory) you would have more money available to pay your loan since other prices have gone down.

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An increase in the rate of expected inflation will Group of answer choices shift the demand for loanable funds to the left (down

Brums [2.3K]

Answer:

shift demand and supply for loanable funds to the right (up), increasing interest rates.

Explanation:

According to the Fisher hypothesis when there is an increase in the expected inflation there is an equal increase in nominal interest rates.

As interest rates rise demand and supply for loanable funds will rise. This is illustrated in the attached diagram. Interest rate moves from i0 to i1.

Inflation is a reduction in the purchasing power of money. When inflation increases money regulation agencies reduce supply of money as a way to reduce price increase. This in turn reduces the amount of loanable funds commercial banks have to give out

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3 years ago

Your friend Scotty informs you that in 2019 he received a tax-free reimbursement of some medical expenses he paid in 2018. Which

DanielleElmas [232]

Answer:

c.Scotty did not itemize deductions in 2018

Explanation:

Itemized deductions can be defined as a form of eligible expenses in which individual taxpayers can claim on federal income tax returns which will in turn reduce their taxable income, and this is said to be often claimable in place of a standard deduction, only in a situation where it is available which is why ITEMIZED DEDUCTIONS are expenses that are allowed by the IRS that can decrease your taxable income because when an individual itemize on his or her tax return, such individual can opt to pick and choose from the multitude of individual tax deductions out there instead of taking the flat-dollar standard deduction.

Therefore based on the Scotty scenario the statements that best explains why Scotty is not required to report the reimbursement in gross income is :Scotty did not itemize deductions in 2018

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3 years ago

The plaintiff and the defendant entered into a three-year contract in which the defendant would be the sole supplier of steel pa

Sonja [21]

Answer:

Yes

Explanation:

Emails show an agreement between the defendant and the plaintiff and as long as they are proved to be actually between the parties, it is considered evidence.

7 0

2 years ago

James Company began the month of October with inventory of $32,000. The following inventory transactions occurred during the mon

NARA [144]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Download xlsx

3 0

3 years ago

The following information relates to Wildhorse Co. for the year ended December 31, 2020: net income $1,305 million; unrealized h

Bess [88]

Answer:

a. The Other comprehensive income for 2017 is $-11.2 million

b. The Comprehensive income for 2017 is $1,293.8 million

c. The Accumulated other comprehensive income at December 31, 2017 is $45.2 million

Explanation:

a. According to the given data the company incurred a loss of $11.2 million as an unrealized income from available-for-sale debt securities. It is the actual loss.

Therefore, other comprehensive income is (-$11.2) million.

b. In order to calculate the Comprehensive income for 2017 we would have to use the following formula:

Comprehensive income=Net income−Unrealised holding loss

=$1,305 million−$11.2million

=$1,293.8 million

Therefore, comprehensive income for 2017 is $1,293.8 million

c. In ordert to Calculate the accumulated other comprehensive income we would have to use the following formula:

Accumulated comprehensive income = Existing income−Unrealised holding loss

=$56.4million−$11.2million

=$45.2million

The Accumulated other comprehensive income at December 31, 2017 is $45.2 million

5 0

3 years ago