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Sphinxa [80]
2 years ago
5

Inflation imposes many costs on the economy: shoe-leather costs, money illusion, menu costs, wealth redistribution, price confus

ion, future price level uncertainty, and tax distortions. For each of the following statements, determine the associated cost. Be careful! Some of the statements may not go into any of the categories because two categories are missing.
a. A jeweler observes the price of gold rise and wonders if there is a shortage of gold.
b. Carson is angry because the price of donuts increased from $1 to $2 since last week
c. Your grandmother's savings account pays 2% interest, but inflation is 5%.
d. The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today.
e. Jim is reluctant to sell his stocks at the end of the year.
f. John thinks his new salary in NYC will increase his standard of living
g. Kallie is taking more trips to ATM now that the post.
Business
1 answer:
Flura [38]2 years ago
5 0

Answer:

a. A jeweler observes the price of gold rise and wonders if there is a shortage of gold.

Costs imposes by Inflation: Price confusion

b. Carson is angry because the price of donuts increased from $1 to $2 since last week

Costs imposes by Inflation: Menu costs

c. Your grandmother's savings account pays 2% interest, but inflation is 5%.

Costs imposes by Inflation: Wealth redistribution

d. The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today.

Costs imposes by Inflation: Not associated with listed cost

e. Jim is reluctant to sell his stocks at the end of the year.

Costs imposes by Inflation: Not associated with listed cost

f. John thinks his new salary in NYC will increase his standard of living

Costs imposes by Inflation: Money illusion

g. Kallie is taking more trips to ATM now that the post.

Costs imposes by Inflation: Shoe-leather costs

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horsena [70]

Answer and explanation:

a)  

This investment tax credit will lead to a surge in the investment demand, because of the benefits that the firms receive from the investment tax credit. More and more firms will undertake investments leading to an increase causing the IS curve to shift to the right.  

<em>This implies that the output and GDP will increase in the short run.  </em>

(check image file 1 attached)

b)  

The increase in the demand for US goods will lead to an increase in the capital inflow for the country, the exports will increase, and the IS curve will shift to the right.  

<em>This implies that the output and GDP will increase in the short run</em>

(check the attached image file 2)

c)  

US consumers' infatuation with goods and services from New Zealand is going to increase the imports of the country. While it may also reduce the domestic consumption spending. This, however, will affect the country by shifting its IS curve to the left.  

<em>This implies that the output and GDP will decrease in the short ran.  </em>

(check image file 3)

d)  

Though the prices of the houses will fall sharply, increasing the affordability of the houses but the confidence of the people in real estate will be shaken. This would lead to a fall in the housing investment. This fall in investment will shift the IS curve to the left.  

<em>This implies that the output and GDP will decrease in the short run.</em>

check image file 4

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3 years ago
Assuming a company has no other funding sources other than debt and common equity, what is the difference between enterprise val
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A building's owner pays a property manager in 81/2% commission based on the units annualized rent for each new tenant last year
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Commission paid by the building owner to the property Manager for the new tenant is $4575.

<h3>What is a Commission?</h3>

A brokerage receives compensation for delivering a customer who signs a lease by way of a rental commission. Frequently, rental commissions are stated as months of rent or as a percentage of the annual rent.

The calculation for the Commission of Property Manager:

Commission = Total annualised rent x percentage of Commission

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Thus,  a rental commission, a brokerage is paid for bringing a consumer who signs a lease. The commission for the property manager is $4,575.

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5 0
2 years ago
A proposed new project has projected sales of $175,000, costs of $93,000, and depreciation of $24,800. The tax rate is 23 percen
allochka39001 [22]

Answer and Explanation:

Sales                            = $175,000

Less: Cost                    = $93,000

Gross Profit                  = $82,000

Less: Depreciation       = $24,800

EBT                                = $57,200

Less: Tax [email protected]%    = $13,156

EAT                                 = $44,044

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b). OCF = [(sales - costs - Depreciation) * (1 - T)] + Depreciation

             = [($175,000 - $93,000 - $24,800) * (1 - 0.23)] + $24,800

             = $68,844

c). OCF = [(sales - costs) * (1 - T)] + [Depreciation * T]

             = [($175,000 - $93,000) * (1 - 0.23)] + [$24,800 * 0.23]

             =  $68,844

d). OCF = Net income + depreciation

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D. is not sending a strong message to investors and creditors that it has the ability to repay its​ short-term debt

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