Answer: Yes it is
Explanation:
The Permanent Income Hypothesis posits that human expenditure in the short term is based on the amount of income they expect to get as income over the long term.
If a person for instance, knows that they will receive a pay cut at the end of the year, they will probably spend less today to survive the pay cut.
Same goes for the worker in this scenario. They know that the amount they saved is all they have now and into the future so they are adjusting their expenses to ensure they survive on that saving.
Answer: C - Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm.
Explanation: Since the benefit of owning the dog is worth $200 to Abe and Jenny is willing to pay him $300 to send the dog to his parents who lives on an isolated farm. Abe stand to gain an extra $100 above his initial benefit of keeping the dog for $200.
Answer:
$169,521
Explanation:
The computation of long-term debt is shown below:-
Total asset = Cash + Inventory + Goodwill + Net plant and equipment + Receivables + Current assets
= $23,015 + $213,100 + $78,656 + $710,100 + $141,258 + $11,223
= $1,177,352
Long-term debt = Total asset - Account payable - Common stock - Retained earnings - Short term notes
= $1,177,352 - $163,257 - $311,300 - $512,159 - $21,115
= $169,521
Hence, we have applied the above formula for determining the long term debt.
