Answer:
1. Increase in real income percentage = 1.5%
2. Rate of inflation = 1.7%
Explanation:
For computing the percentage of how much real income would increase, we have to apply the formulas which are shown below:
The increase in real income percentage would be equal to
= increase in nominal income percentage - increase in price level percentage
= 5.3% - 3.8%
= 1.5%
And, the rate of inflation equals to
Nominal income - the rate of inflation = Real income
2.8% - rate of inflation = 1.1%
So, the rate of inflation = 1.7%
Cash flow!! hope this helped :)
Answer:
First Scenario:
The furniture store should develop a system which helps keeps track for the purchases made on account. The system should keep track of invoices and payment due dates. The system should notify the team when the payment due date is near. The system should have controls for identifying duplicate payments.
Explanation:
Second Scenario:
The account payable clerk should keep track of all the invoices entered in the system. The system controls should be efficient so that there is no duplicate payment or missed payment. The system should notify the user when any duplicate invoice entering attempt is made. There should be authorization of invoices before they are entered in the system. The payment process should be segregated between 2 or more users so that there is less risk for fraud.
Answer:
1080
Explanation:
Compound interest involves the reinvesting of interest.
The formula for compound interest is given by:
Where P is the principal (i.e the beginning balance),
r is the rate,
n is the number of times it is compounded,
t is the number of years
A is the ending balance.
Given that P = 1000, r = 8% = 0.08, t =1 years and it is compounded annually (i.e n = 1).
Substituting values into the formula and calculating gives:
Answer:
Option D)
- Price ⇒ increase
- Quantity ⇒ indeterminate
Explanation:
Since the government increases the excise tax on gasoline, the price of gasoline should increase. Taxes always do that, they increase the price of everything. This increase in price should result in a lower quantity demanded.
If consumers start to drive longer distances because they decided to live in the suburbs, this will increase the quantity demanded for gas, and that increase int eh quantity demanded should also increase the equilibrium price.
If we combine both situations, only one definite outcome will result: the equilibrium price of gasoline will increase. But regarding the quantity demanded, that is a little more complicated because the increase in price should lower the quantity demanded, not by a lot because gas is generally very price inelastic. On the other hand, longer rides should increase the quantity demanded, but we do not know by how much. So the change in quantity is indeterminate.
