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2 years ago

Explain how growing personal income is related to economic conditions.

Business

1 answer:

NISA [10]2 years ago

7 0

Answer:

see below

Explanation:

Personal income is the total earning an individual gets from wages, investments, bonuses, dividends, profits, or other ventures. It is the sum of a household income. Personal income is calculated per period, usually one year.

Economic conditions refer to the prevailing state of a country or region's economy. Economic conditions are ever-changing and are influenced by business cycles of expansions and contraction, government fiscal and monetary policies, macroeconomic factors, and global factors. Governments and investor use indicators to tell the state of the economy

Economic conditions impact people's and business income. Government policies and global economics influence the level of economic activities. The expansion period has increased economic activities are leading to increased incomes. At contraction, business activities decline, resulting in reduced income.

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Suppose the Fed carries out an open market sale of $100m and simultaneously decreases the minimum required reserve ratio from 10

andrey2020 [161]

Answer:

loanable amount after Fed operation = $950 M

Securities after fed operation = $50 M

attached below is the T-account table

Explanation:

Given data:

For assets : securities = $100 M , Loans = $800 M

For Liabilities : Constant demand deposit = $1000 M

difference between the assets and liability = $100 M and this makes the Banking system unbalanced hence the Banking system needs the intervention of the Fed. and the reduction in the required reserve ratio from 10% to 5% is the right action

How with the reserve ratio reduced to: 0.05

hence required Minimum required securities after operation = 0.05 * 1000 M = 50 M

Note : Total demand deposits = securities + loanable amount

therefore loanable amount after Fed operation = $1000 M - $50 M = $950

Attached below is the T-table

When both tables are compared it can be seen that there is a significant increase in the loanable amount after the Fed's operations and increase in Loanable amount transcends to increase in Monetary base

5 0

3 years ago

Classification shifting by managers leads to under-reporting of total expenses and over-statement of bottom-line net income.

Step2247 [10]

Answer: False

Explanation:

Classification shifting is a method used whereby the core earnings are manipulated by misclassifying the items in the income statement.

One way that managers make use of classification shifting is by reporting the operating expenses for the business as nonoperating expenses. This is usually done in order to inflate the operating income.

The statement in the question is false as classification shifting by managers doesn't lead to under-reporting of total expenses and over-statement of bottom-line net income rather it lead to over reporting.

4 0

2 years ago

Calculating and Interpreting EPS Information Wells Fargo reports the following information in its 2015 Form 10-K. In millions 20

Delvig [45]

The answer is 20 because 30 is 20 but in a different hdhwgegdhdhbshehdhdb way

6 0

3 years ago

When you are in a conflict that you are not passionate about, it is seen as gracious to sometimes ______. a. Fight for your side

Hunter-Best [27]

Answer:

B) Step aside and let the other person prevail

Explanation:

I took it on Edgenuity

7 0

3 years ago

On July 10, Boogie Footware agrees to a contract to sell 800 pair of flapper shoes for $16,000 to Twenties, Inc. On September 1,

atroni [7]

Answer:

$2,000

Explanation:

Revenue is the income generated from normal business activities. This includes allowances, discounts and deductions for sales returned.

Since Boogie and Twenties modify the agreement to reduce the price of the remaining 300 pair of flapper shoes to $10 a pair, it means that revenue to be recognized from the date of the change will be recognized at a unit price of $10.

As such if Boogie delivers 200 pairs of shoes in September,

Revenue to be recognized in the Month of September

= 200 * $10

= $2,000

5 0

3 years ago