Available Options Are:
a) higher sensitivity to changes in the interest rate, or
b) lower sensitivity to changes in the interest rate
Answer:
Option A. Higher sensitivity to changes in the interest rate
Explanation:
The reason is that the tax cut will encourage foreign investment and this increase in Foreign Investment will increase the GDP but by small amount. However, the higher interest rate in an economy always raises additional money in an economy which companies invest to purchase the new GDP. Thus the GDP growth is highly sensitive to changes in interest rate.
Answer:
$7,840
Explanation:
The inventory of Items A and B should be valued at the lower of cost and the net realizable value.
The cost is the invoice price at time of purchase ,while the net realizable value is the selling price less to sell
Products Cost Selling price cost to sell NRV unit value
A $18 $22 $6 $16 $16
B $48 $54 $4 $50 $48
Item A is valued at $16 each i.e $16*160=$2,560
Item B is valued at $48 each i.e $48*110=$5,280
total value of inventory =$7,840
The ending inventory valued at the lower of cost or net realizable value is worth $7,840
Answer: No, Paul has not breached a contract.
Explanation: To answer this, we must first we must define what a contract is.
A contract is an agreement between two or more people that is legally binding, and which guides or governs the actions or conducts of the parties involved.
A quality that makes a contract legally binding is that it is enforceable by law.
In the scenario given in the question above, Paul has not breached any contract because there isn't one. The promise to buy dinner has not been legally bound, therefore, it is not enforceable by law, in essence, it is not qualified to be called a contract.