Answer: Option (d) is correct
If consumption increases, the AD curve will shift rightward, which will increase the price level.
Explanation:
If the consumption increases in an economy as a result there is a rightward shift in the aggregate demand curve. This shift in the aggregate demand curve lead to increase in the price level as well as in the output level.
Because there is more demand in the economy which gives an advantage for the producer to charge higher price.
Answer:
The answer is =16.7%
Explanation:
Earnings before interest and taxes(EBIT) = $145,000
Tax rate is 25%
Therefore, the applicable tax rate on the earnings is 100% - 25% = 75%
So the Net income is 0.75 x $145,000
Net income = $108,750
The project is financed by 100percent equity and the cost is $650,000.
ROE(Return on Equity) = net income/equity
$108,750/$650,000
=16.7%
To record the write-off of receivables:
Allowance for doubtful accounts ----------------------------$24,000
Accounts Receivable -----------------------------------------------$24,000
To record the accounts receivable collected from the written-off receivable, first restore the accounts receivable with the following entry:
Accounts Receivable ------------------------------------------$1,900
Allowance for doubtful accounts ------------------------------$1,900
To record the collection of accounts receivable:
Cash -----------------------------------------------------------------$1,900
Accounts Receivable ----------------------------------------------$1,900
Or, the direct journal entry to record the collection of previously written-off accounts receivable is:
Cash ---------------------------------------------------------------$1,900
Allowance for doubtful accounts ------------------------------$1,900
The answer to your question is B.
It is true that because of the substitution problem, the CPI tends to overstate the true change in the price of the typical basket of consumer goods.
<h3>What is CPI?</h3>
- A consumer price index measures a market basket of goods and services that households have purchased at a weighted average price.
- The measured CPI fluctuates to reflect changes in prices over time.
- One of the most popular methods for determining inflation and deflation is the CPI.
- An essential gauge of an economy's health is inflation. The CPI and other indexes are used by governments and central banks when making economic decisions.
- The decision to raise or cut interest rates is crucial among these.
- If the CPI increases, it indicates that the average rate of change in price over time has increased. The cost of living and income are eventually changed as a result of this.
Learn more about CPI here:
brainly.com/question/14453270
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