Answer:
C) Shows an inverse relationship between the price level and the quantity of all goods and services demanded.
Explanation:
Aggregate demand represents the demand for goods and services while its supply is called aggregate supply. Aggregate demand curve represents the total amount of goods and services demanded by an economy different price levels. Using a pictorial image, this curve has various axis: The vertical one represents the price level of the goods and services. This aggregate price level is determined through a Gross Domestic Product deflator. The horizontal axis represents the quantity of goods and services procured. All aggregate demand curves just like normal demand curves, slopes downwards which means that there is an inverse relationship between the price levels and the quantity demanded. The downward sloping of the aggregate demand curves and normal demand curves might be coincidental but with various reasons. The downward slope normal demand curves is caused by the assumption that prices of goods and services as well as the buyer's income are constant.
Downward slope in aggregate demand curves is assumed to draw reasons from the fact that government most at times are in charge of money supply. Another assumption involves interest rate and net exports.
A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand.
The amount of $225,000 will be the would be the basis of the apartment building for income tax purposes.
Basically, the cost basis is the purchase cost which is $225,000.
The fair market value and appraised cost does not have anything to do with tax basis for income tax purposes.
In conclusion, the amount of $225,000 will be the would be the basis of the apartment building for income tax purposes
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Answer:
The correct answer is $23,260.69.
Explanation:
According to the scenario, the given data are as follows:
Payment (pmt ) = $7,000
Time period (n) = 3
Rate of interest (r) = 5.2%
So, we can calculate the future value by using following formula:
FV = Pmt ( 1 + r)^n + Pmt ( 1 + r)^n-1 + Pmt ( 1 + r)^n-2
By putting the value, we get
= $7,000 ( 1 + 0.052)^3 +$7,000 ( 1 + 0.052)^2+$7,000 ( 1+ 0.052)^1
= $23,260.69
hence, The future value after 3 years will be $23,260.69.
Answer:
r= .0901, or 9.01%
Explanation:
N=18, PV=73,000, FV=345,000, I=? 9
Therefore:
V = PV(1 +r)t
= (FV/PV)1/t– 1
r= ($345,000/$73,000)1/18– 1
r= .0901, or 9.01%
The annual rate of interest the person must earn on the investment to cover the cost of the child’s college education is 9.01%
