<span><span>(d)
George can disaffirm the contract, but he must pay for the reasonable value of
the goods. A minor who
has been emancipated has all the </span>contractual<span> rights and obligations of a person who has reached the age of majority
and the right to disaffirm is the 1st right granted to minors in
contract law cases.</span></span>
The correct option is A. The effect of tax cut is reduction in the amount of money that the government is generating and increase in the amount of money available to those whose taxes are reduced. Government usually cut taxes in order to boost the economy through increased spending.
The Utility Maximization rule states that as long as one good provides more utility per dollar than another, the consumer will buy more of that good.Marginal utility is t<span>he extra utility a consumer obtains from the consumption of one additional unit of a good or service. So, in our case the additional unit can be cherry or date. MUc is the marginal utility of cherry and MUd is the marginal utility of date:
MUc=2*MUd
The price of the cherries is Pc and of the dates Pd: Pc=2*Pd.
According the utility maximization: MUc/Pc=MUd/Pd
2*MUd/2*Pd=MUd/Pd
So, yes the </span><span>consumer is maximizing utility. </span>
Here is the answer choice to the question
a. the real rate of interest on your loan is 14%.
b. the real rate of interest on your loan was previously 10% and is now 35%.
c. the real rate of interest on your loan is now –2%.
d. you will pay the lender back exactly $9,500.
e. you will pay the lender back exactly $10,700
Answer:
C. the real interest rate on your loan is now -2%
Explanation:
The real interest rate of can be gotten by subtracting the nominal interest rate from the inflation rate from nominal interest rate
Inflation rate = 7%
Nominal interest rate= 5%
= 5 percent - 7 percent
= -2%
The real interest rate can be defined as the rate of interest an investor, saver or lender is going to receive after they have allowed for inflation.
Answer: Earnings are reported by the investee in its financial statements
Explanation:
Equity method is when investments are being treated in associate companies and it is usually applied in cases whereby an investor entity holds about twenty to fifty percent of the associate company's voting stock. Due to this reason, it has a strong say in the associate company's management.
Under the equity method of accounting for investments, an investor recognizes its share of the earning in the period in which the earnings are reported by the investee in its financial statements.
