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3 years ago

Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist.

Business

1 answer:

Cloud [144]3 years ago

3 0

Answer: See explanation

Explanation:

a. This occurs when a person's income exceeds his consumption. - This is savings.

b. This occurs when a person or firm purchases new capital. - This is investment.

1. You use your $200 paycheck to buy stock in AT&T. - This is savings since the money isn't used to make a capital purchase for ones business.

2. You borrow $1,000 from a bank to buy a car to use in your pizza delivery business. - This is investment as the car will be used for ones business. The consumption is made to help the business.

3. Your family takes out a mortgage and buys a new house. - This is investment as a new capital is bought.

4. Your roommate earns $100 and deposits it in his account at a bank. - This is savings as no consumption is involved.

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Who heads each of the branches of Federal Reserve Banks and look after their functioning?

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3 years ago

On 1/1/22 Big Co acquired 60% of Little Co voting stock for $300,000. The fair value of the NC Interest was $200,000 on that dat

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Answer:

1. Particulars Amount

Reported net income of Little $70,000

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2. Particulars Amount

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Investment in Little at end of year balance $330,000

4. Particulars Amount

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Income to the NC Interest $28,000

Less: Dividends paid to NC Interest (20000*40%) $(8,000)

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3 years ago

Ceteris paribus, if the corn crop is 15 percent larger this year than it was last year, farmers will have to ________ the price

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Answer:

Reduce and more than 15 percent

Explanation:

As Inelastic Demand state that the percentage change in quantity demanded is less than the percentage change in price. Therefore, if the crop is 15 percent higher, farmers will have to reduce the cost of corn by 15 percent to sell the new crop. We know that supply and price share an inverse relationship to reduce sales as supply increases and new crops grow.

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Answer:

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