Answer:
b) households will save more because they will expect higher taxes in the future
Explanation:
The Ricardian Equivalence proposition is one of the pillars of classical economics, which sadly has proven to not work very well in the real world. According to classical economists, and their quantity theory of money plus the Ricardian Equivalence, recessions do not exist because it is impossible for them to exist. But in the real world, that is not true. Recessions exist, e.g. the US is in a recession since the first quarter of 2020 (even before the current health crisis). When real people lose their jobs or are afraid to lose their jobs, their spending habits change.
On the other hand, when real people get a tax refund or tax cut, they generally spend it, they will not save it to pay future taxes. That is why car sales increase during February after checks form the IRS are handed out.
Theoretically, classical economics is great. The problem is that we are human beings, and as such, our behavior cannot be controlled or determined by what we should or should not do. This is exactly why the velocity of money (quantitative theory of money) is not constant.
Answer:
The biggest challenge is PNG
Answer:
Correct option is B.
$278,000
Explanation:
Common Fixed Expenses = Office Administrative Assistant + Office Administrative Assistant + President's Salary
Common Fixed Expenses = $61,750 + $46,750 + $169,500
Common Fixed Expenses = $278,000
If a software package is purchased, consider a supplemental maintenance package which offers additional support and assistance from the vendor.
Supplemental maintenance with assist in future issues while using the software. These can range from not working correctly or just needing a few tips on how to use the software. Most companies that sell software or electronics, offer these.
Answer:
C) Total assets are overstated.
Explanation:
The journal Entry for the Depreciation is as follows:
Dr. Depreciation Expense xxx
Cr. Accumulated Depreciation xxx
By missing this Journal entry the Accumulated depreciation account will be understated as we know that this is a contra asset account and this will net off the Long term assets. So, as a result the total asset will be overstated.
