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n200080 [17]
3 years ago
11

The present government has initiated the tax reforms such as relaxation of taxes on relaxing a property sales tax, and removal o

f
voucher tax. Such fiscal policy action will cause which of the following to occur?

Select one:
a. the LM curve shifts right and the
economy move along the IS curve.
b. the LM curve shifts left and the
economy move along the IS curve.
c. the IS curve shifts right and the
economy moves along the LM curve
d. the IS curve shifts left and the
economy move along the LM curve.

= the IS curve shifts right and the
economy moves along the LM curve​
Business
1 answer:
DochEvi [55]3 years ago
5 0

Answer:

= the IS curve shifts right and the

economy moves along the LM curve

Explanation:

= the IS curve shifts right and the

economy moves along the LM curve= the IS curve shifts right and the

economy moves along the LM curve= the IS curve shifts right and the

economy moves along the LM curve

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Suppose that gasoline prices increase dramatically this month. Lola commutes 100 miles to work each weekday. Over the next few m
oksian1 [2.3K]

Answer:

The time horizon as in the long run the consumer can change their consumer preferences and adjust to change in price for the goods

Explanation:

At the first moment, Lola demand for gasoline is inelastic as it cannot avoid the cost to moving to his workplace.

As time passes the demand canrespond and adjust to the new information givne by the market/price system

Lola moves to a closer home and finds a solution that wasn't viable in the short run.

7 0
3 years ago
Jim has an annual income of $180,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowners i
MariettaO [177]

Answer:

$787,471.02

Explanation:

Given:

Jim's annual income = $180,000

Monthly property taxes = $140

Monthly homeowners insurance = $70

Monthly student loan payments = $178

Maximum front end DTI limit = 28%

Maximum back end DTI limit = 36%

Amortizing period = 30 years = 360 months

annual rate = 4.5% compounded monthly

Now,

Monthly salary = \frac{\textup{Annual income}}{\textup{12 months}}

or

Monthly salary = \frac{\textup{180,000}}{\textup{12 months}}

or

Monthly salary = $15,000

Maximum front end DTI limit

= (Maximum Monthly loan payment + monthly property taxes + monthly homeowner's insurance) ÷ Monthly income

0.28 × $15,000 = Maximum Monthly loan payment + $140 + $70

Maximum Monthly loan payment = $4,200 - $140 - $70

= $3,990

and,

Maximum back end DTI limit =

or

0.36 × $15,000 = Maximum Monthly loan payment + $140 + $70 + $178

or

Maximum Monthly loan payment = $5,400 - $140 - $70 - $178

= $5,012

Now,

The monthly payment = minimum of [ $3990, $5012 ]

therefore,

The monthly payment = $3,990

Thus,

The maximum amount of loan = Monthly payment × [\frac{(1-(1+\frac{r}{k})^{-kn})}{(\frac{r}{k})}]

here,

k = 12 when compounded monthly

n  = 30 years

r = 4.5% = 0.045

The maximum amount of loan = $3,990 × [\frac{(1-(1+\frac{0.045}{12})^{-12\times30})}{(\frac{0.045}{12})}]

or

The maximum amount of loan =  $787,471.02

8 0
3 years ago
The Tobler Company had budgeted production for the year as follows:
solong [7]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The Tobler Company had budgeted production for the year as follows:

Quarter 1 2 3 4

Production in units 10,000 9,000 13,000 11,000

4 pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 7,000 lbs. The raw materials inventory at the end of each quarter should equal 9% of the next quarter's production needs in materials.

Direct material 2nd quarter:

Production= 9,000*4= 36,000lbs

Ending inventory= (13,000*0.09)*4= 4,680lbs

Beginning inventory= (9,000*0.09)*4= 3,240lbs (-)

Total= 37,440 lbs

4 0
3 years ago
Kareem owns a pickup truck that he uses exclusively in his business. The adjusted basis is $22,000, and the fair market value is
Novosadov [1.4K]

Answer:

The "Kareem" realized loss on the exchange is <u>$8000.</u>

Explanation:

The adjusted basis is = $22000

"Fair market value" is = $14000

"Kareem" exchanges the truck for another truck = worth $14000

"Realized gain" or "Realized loss = basis in the truck - exchange value

Realized gain or loss = $22000 - $14000

Realized gain or loss = $8000

Kareem's loss on the exchange is $8000.

There is no "recognized gain" or "recognized loss"  because the exchange is like a kind exchange which is not documented.

5 0
4 years ago
hyde's headphones sells deluxe headphones for $90 each. Unit variable expenses total $50. The breakeven sales in units is 2,000
Veseljchak [2.6K]

Answer:

See below

Explanation:

Given the above information, margin of safety in dollars is computed as;

= (Total sales - Break even sales) × Sales price

= (4,525 - 2,000) × $90

= $227,250

Therefore, the margin of safety in dollars is $227,250

3 0
3 years ago
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