The direct write-off method violates the <u>matching principal</u>, which says that revenues and expenses are recorded in period that they occur (not necessarily when they are collected/written off).
John Taylor's thumb rule is based on the notion that in order to assist the economy, it is necessary to produce at potential output, central banks are willing to tolerate <u>Positive rate of inflation</u>.
<h3>The Taylor Rule define as:</h3>
The Taylor Rule is a rule that ties a central bank's policy rate to inflation and economic growth. It was developed in 1993 by economist John Taylor and posits an equilibrium federal funds rate 2% higher than the yearly inflation rate.
<h3>What is rates of inflation?</h3>
Inflation is defined as an increase in the prices of goods and services purchased by households. It is calculated as the rate of change of such prices. Prices usually rise over time, but they can also fall (a situation called deflation).
<h3>Describe central banks: </h3>
A central bank, reserve bank, or monetary authority is an institution that manages a state's or formal monetary union's currency and monetary policy as well as its commercial banking system. In contrast to a commercial bank, a central bank has a monopoly on raising the monetary base.
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Answer:
The correct answer is letter "D": shortages.
Explanation:
Price ceilings are price limits imposed by the government to avoid producers increasing the price of goods that can be considered as basic or necessary. Then, the price ceiling will increase the demand for those goods but not the supply. Under this scenario, there will be a shortage of that product because of the excess in demand over supply.
Answer:
If you invest $24 at a 5% rate during five years, you will earn:
$24 x (1 + 5%)⁵ = $24 x 1.2763 = $30.63
After 50 years, and at the same 5%, you will earn:
$24 x (1 + 5%)⁵⁰ = $24 x 11.4674 = $275.22
I guess that back then $24 was a lot of money, or at least a considerable amount since that was Manhattan's price (at least its equivalent price in trinkets). Or maybe he was a better negotiator than most modern politicians.
generally considered personal property by law whether you own it or just rent it.