Answer:
$125,000. $18,000.
Explanation:
Shelly's $125,000 cash-value policy has a cash value of $18,000. If Shelly dies, her beneficiary receives <em>$125,000.</em> If she does not die, but decides to cancel the policy, Shelly will receive <em>$18,000</em>. Cash-value life insurance is permanent life insurance, it does not expire on a specific term. A portion of the premium is deposited in a cash-value account, which earns a low rate of interest. If Shelly dies, the beneficiary receives $125,000. If Shelly decides to cancel, she receives the accumulated cash value of $18,000.
The income effect is the change in the demand of the goods and services as an result of the change of the The increased voluntary income of the consumer. Hense, the best option that describes the income effect is;The increased income earned by suppliers because of high prices. :)
