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2 years ago

If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods?.

Business

1 answer:

Paraphin [41]2 years ago

5 0

When there is a recession and a fall in income, in the markets for inferior goods, demands increase.

<h3>What are inferior goods?</h3>

Inferior goods are goods whose demand falls when income rises and increases when income falls.

<h3>What is a recession?</h3>

A recession is when there is a negative gross domestic product for four consecutive periods. When there is a recession, there is a decline in productivity in the economy.

To learn more about inferior goods, please check: brainly.com/question/15901212

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Vilas Company is considering a capital investment of $190,100 in additional productive facilities. The new machinery is expected

zheka24 [161]

Answer:

9.49%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = $190,100

cash flow each year from year 1 to 5 = $49,500

IRR = 9.49%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

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3 years ago

On July 1, 2021, Tremen Corporation acquired 25% of the shares of Delany Company. Tremen paid $3,090,000 for the investment, and

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Answer:

The tremen's investment in Delany company is $3,162,500

Explanation:

Tremen's investment in Delany Company account would be as follows at year ended 31st December 2021

Initial investment value $3,090,000

Delany's net income $1,300,000

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Profits after dividends $580,000

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year end balance of Tremen's investment $3,162,500

First of all, the total dividends is taken away from net income and a portion of the net income after dividend payment is added to Tremen's investment which reflects its percentage shareholding and the duration of investment of six months

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3 years ago

An initial decrease in a bank's reserves will decrease checkable deposits A. by an amount equal to the decrease in reserves. B.

ASHA 777 [7]

Answer:

C. by an amount greater than the decrease in reserves.

Explanation:

Due to the deposit multiplier which is determined by the required ratio reserve, the amount of checkable deposits decrease much more than the amount of decrease in the reserves.

It works as detailed:

Deposit Multiplier ∆D = (1/rr) × ∆R where the variation of "D" is determined by the "rr" (Ratio Reseserve) times "R" (Changes in Reserves.)

If the "rr" it's keep at the same level then a change in the "R" (Reserves) will have an impact in the "D" (Deposit) multiplied by the "1/rr".

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3 years ago

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Answer:

The maximum business interest deduction that George will be eligible to claim this year is $522,000

Explanation:

For computing the maximum business interest deduction, first, we have to compute the adjusted taxable income. So, the computation of adjusted taxable income is shown below:

= Allocable taxable income + business interest + depreciation amount

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3 years ago

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Firm ethics, by definition, are the moral precepts that function standards for how a business operates and conducts its activities.

In many respects, the identical rules that people employ to behave appropriately in both personal and professional contexts also apply to organizations.

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