Answer:
No they just want to look rich
Although price searchers can set their prices for products, the prices they can set are however, still affected by market conditions: True.
<h3>What is price?</h3>
Price refers to the amount of money that is set by a seller and must be paid by a buyer (customer) to the seller (producer), so as to enable the acquisition of these goods or services.
Although price searchers can set their prices for the goods (products) they sell or service they render, the prices they can set are however, still affected by various market conditions such as:
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Answer:
Decreases by $2 million; Money supply decreases by $12.5 million
Explanation:
Given that,
Required reserve ratio = 16 percent
Government bonds sold by Fed = $2 million
Therefore, the economy's reserve decreases by:
= Change in money supply × Required reserve ratio
= $12.5 million × 0.16
= $2 million.
Money multiplier = 1 ÷ Required reserve ratio
= 1 ÷ 0.16
= 6.25
Money supply decreases by:
= Money multiplier × Decline in reserves
= 6.25 × $2 million
= $12.5 million
Answer:
$23,000
Explanation:
The computation of the income tax refund receivable is shown below:
Income tax refund receivables = (Loss carry back to year 2017 × Tax rate for year 2017) + (Loss carry back to year 2018 × Tax rate for 2018)
= ($20,000*35%) + ($40,000*40%)
= $7,000 + $16,000
= $23,000
We simply applied the above formula so that the income tax refund receivable is to be computed
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