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atroni [7]
3 years ago
12

Consider the following information:

Business
1 answer:
Stolb23 [73]3 years ago
7 0

Answer:

The individual will plan to spend or consume more of his wages than usual; since he believes there'll be a tax cut.

Explanation:

C = consumption

W = wages

Note: No graph is attached to the question so we can't make use of certain information in the question.

Suppose there is an announced change in tax policy - a tax cut/reduction - and a tax increase later; <em>what is the impact of this policy on consumption if the consumer believes that the policy will be implemented?</em>

<em />

Reasoning as an economist, the first reaction of a rational consumer is to begin to consume more since he believes the tax reduction policy will be implemented.

NOTE that sometimes the government or financial ministry in a country intentionally announce policies just so citizens can begin adjusting their consumption and investment patterns in line with them. They do not necessarily follow up with implementation of the policies.

So for a consumer who believes that there'll be a tax cut, he'll be excited and will either consume more of his present wage or consume all and borrow or dissave.

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AleksandrR [38]
The investment type that typically carries the least risk is saving account
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3 years ago
Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single p
Margarita [4]

Answer:

$93,600

Explanation:

The computation of the total contribution margin is shown below:

Given that

For 5,100 sales unit, the contribution margin is $91,800

So, for 5,200 sales units, the contribution margin would be

= Contribution margin × new sales units ÷ previous sales units

= $91,800 × 5,200 units ÷ 5,100 units

= $93,600

All other information which is given is not relevant. Hence, ignored it

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3 years ago
Dixon Construction Company was awarded a contract to construct an interchange at the junction of U.S. 94 and Highway 30 at a tot
Ostrovityanka [42]

Answer:

The Journal entries are as follows:

(i) Construction in progress A/c Dr. $5,104,000

                    To cash A/c                                      $5,104,000

(To record the construction costs)

(ii) Accounts receivables A/c Dr. $2,980,000

              To billings A/c                                    $2,980,000

(To record the progress billings)

(iii) Cost of goods sold A/c Dr. $5,104,000

Construction in progress A/c Dr. $1,740,000

             To revenues A/c                                $6,844,000

(To record the revenues)

Workings:

Revenues :

= (Cost incurred to date ÷ Expected costs to complete) × Contract value

= ($5,104,000 ÷ $8,800,000) × $11,800,000

= 0.58 × $11,800,000

= $6,844,000

5 0
3 years ago
I WILL GIVE BRAINLIEST
Ray Of Light [21]

Answer:fixed

Explanation:

Fixed expenses might include: Lease or a mortgage. Other capital expenses, like the cost of buying business assets - equipment, vehicles, furniture.

7 0
3 years ago
Read 2 more answers
The measurement of the Aggregate Supply
Anvisha [2.4K]

Answer:

C; Average Price Level

Explanation:

Here, we want to get what is on the label of the y-axis

The aggregate supply curve is simply a plot of the average price level against the real GDP( gross domestic product)

From this definition, we can see that we have the average price level on the y-axis and we have the real GDP on the x-axis

3 0
3 years ago
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