Answer:
The Correct Answer is "D"
Explanation:
When aggregate demand moves to the right; there is an enhancement in the general cost level just as the genuine GDP. When there is a rightward move of the aggregate supply, genuine GDP increments yet broad value level reductions. It might happen that the size of the two movements is same with the goal that cost level stays unaltered pretty much however genuine GDP increments.
Answer:
Buy
Explanation:
First, we need to find out what is the cost incurred by the company in building the power station and after that, we will compare that cost with the selling price of the power from Tri-county G&T. the lower-priced option will be considered as best option.
Cost incurred by the company in building the power station = $10,000,000 + (150,000 x $35)
Cost incurred by the company in building the power station = $10,000,000 + $5,250,000
Cost incurred by the company in building the power station = $15,250,000
Selling price of the power from Tri-county G&T = 150,000 x $75
Selling price of the power from Tri-county G&T = 11,250,000
Decision: It would be a wise option for the company to buy it. From buying the power the company will save $4m.
Answer:
B) As long as the Fed's announcement is credible, workers and firms will reduce their consumption and investment spending, which will reduce aggregate demand and reduce inflation.
Explanation:
If the FED announces that it will increase the federal funds rate, it will increase the interest that banks charge other banks for lending them money in order to comply with the reserve ratio. This increase would make banks hand out less loans and be more careful in order to reduce their need for overnight funds.
If banks reduce their loans, their capacity for creating money will also be reduced, lowering the consumption level and investment spending of both workers (households) and private firms.
Answer:
Joan will pay income tax on the $10,000 she withdrew in 2018.
Explanation:
When withdrawing from traditional retirement account, the following rules apply:
1. Withdrawals before attaining the age of 59.5 years attract a penalty of 10%, along with income tax on the amount withdrawn.
2. Withdrawals after the age of 59.5 years are treated as income, so income tax is paid on it. In this case tax on the $10,000 withdrawn.
3. At age 70.5 and above you must take the Required Minimum Distribution (RMD) from the pension account.
Note: Roth IRA does not attract tax payments for ages 59.5 years and above, unlike traditional IRA that attracts income tax.
RMD payments does not apply for Roth IRA.
Answer:
$481
Explanation:
Amount paid = Amount lent - Amount left
Amount paid = $14,033 - $8,261
Amount paid = $5,772
Average amount paid each month = Amount paid / Number of months
Average amount paid each month = $5,772 / 12
Average amount paid each month = $481
So, the average amount of Diego's monthly payments is $481.
