Answer:
D. higher than the equilibrium interest rate.
Explanation:
The Fisher equation at equilibrium ; i = r + τe helps you to answer this question whereby;
i = nominal interest rate
r = real interest rate
τe = expected inflation rate
If we re-write it beginning with real interest rate ; r = i - τe .
So, considering the above equation, if the <em>actual</em> inflation rate turns out to be lower than <em>expected</em> , we will have a lower τe and the difference (i - τe) will be bigger making the real interest rate higher than equilibrium.
Answer:
This distribution is not taxable since Raoul is not earning any money at all (dividend income = $0), but the tax basis on the stocks that he holds will vary.
Before the distribution, Raoul had 310 shares, each share with a $60 tax basis. After the distribution, Raoul will have 465 shares, each share with a $40 tax basis.
Answer:
Direct, upward sloping
Explanation:
Supply refers to the quantities of goods or services that firms are willing to sell to the markets are a specific price. As per the law of supply, an increase in prices leads to an increase in the quantity supplied. Therefore, the relationship between the price and quantity supplied is direct. Firms prefer to supply more products to the markets at higher prices because they will make more profits.
The supply curve is a graphical presentation of the relationship between price and quantity supplied. The supply curve is upward sloping. It originates from the bottom left corner, showing how quantities vary along the curve at different prices. Quantity supplied increases as the price rise.
Answer:
$455,000
Explanation:
Given that,
high speed industrial centrifuge at a cost = $420,000
Shipping costs = $15,000
Foundation work = $8,000
additional water line = $3,000
Labor and testing costs = $6,000
Materials used up in testing = $3,000
Total Costs to be capitalized:
= High-speed industrial centrifuge + Shipping costs + Foundation Work + Additional Water Line + Labor and testing costs + Materials used in testing
= $420,000 + $15,000 + $8,000 + $3,000 + $6,000 + $3,000
= $455,000
