The lack of property rights
You believe your restaurant concept can generate $50,000 in net profit per year. Your investors demand at 20% return on investment. How much can you invest?
If your business generates $50,000 in net profit and the investors demand 20% return on investment to solve for how much the investors will get and how much you can invest follow the steps below:
How much the investors will get in return on investment (ROI):
($50,000)(20%) = $10,000 is what the investors will receive
How much can you invest:
$50,000 - $10,000 = $40,000 is what you can invest
Answer:
D. Student loan repayments will not cost as much in real dollars
Explanation:
Inflation refers to the general increase in price of goods and decrease in the purchasing power of money. During inflation, the value of money usually fall, that is because for instance, what $100 can buy before inflation, $100 will not be able to buy it again during inflation. Thus, the student loan that was given to Shawn was of more value than the money he will repay during the inflation.
Answer:
Explanation:
debit Unearned Revenue 200
credit Revenues 200
To realize one month of insurance premium revenue
Answer:
Explanation:
A. The effect of a permanent increase in government purchases is different from that of a temporary increase.
I case of a permanent increase, the income effect is more as compared to that of a temporary increase. This happens because in case of a permanent increase, the present value of taxes is high in order to pay for the added government purchases. Hence, labor supply increases more in case of permanent change.
B. When consumption falls by the equal amount of taxes, there will be no change in the desired national savings. As a result, there will be no shift in the savings curve. If investment is also not changed or affected, The IS curve would not shift.
C. When there is a permanent increase in government purchases and taxes, the supply of labor will increase, thus shifting the FE curve to the right. In order to restore equilibrium back in the economy, the price level must decline, shifting LM curve to the right. As a result, output increases and interest rate falls.
