Answer:
The amount of its liabilities is 280000
Explanation:
In a business balance we can see the following accounting equation
liabilities + owners' equity= assets
liabilities = assets -owners' equity
liabilities = $700,000-$420,000
liabilities = $280,000
Answer:
What happens to the wealth effect of a change in the aggregate price level as a result of this allocation of assets?
- The consumers' wealth effect will rise since the slope of the aggregate demand curve increases as the prices of assets increases, i.e. the slope of the aggregate demand curve becomes steeper as customers become wealthier.
Will aggregate demand still be downward sloping? Why or why not?
- The aggregate demand curve sill still be downward sloping because as the price of a good or service increases, the quantity demanded will still decrease. An inverse relationship exists between price changes and quantity demanded.
Answer:
option (C) 280%
Explanation:
Number of shares of stock X purchased = 100
Purchasing cost of share = 
Selling cost of stocks = $24 per share
Brokerage paid = 2%
Now,
The total purchasing cost involved = 
+ 2% of
= 612.5 + 0.02 × 612.5
= $624.75
also,
Total income from sales of stocks
= Total selling cost of shares - brokerage paid
= $24 × 100 - 2% of Total selling cost
= $2400 - ( 0.02 × $2400 )
= $2400 - $48
= $2,352
now,
The investor's percent gain on this investment = 
= 
= 
= 276.47% ≈ 280%
Hence, the correct answer is option (C) 280%
Because the future value of annual premiums deposited in a mutual fund is 755 (F/A, 9%, 45) = $397,023.34, Then, the friend is correct since the mutual fund is roughly three times the sum under the Insurance policy.
<h3>Was Liam's
suggestion correct?</h3>
Generally, Premium payment is mathematically given as
X=60-20
X=45years
Where future value is
755 (F/A, 9%, 45)
In conclusion
755 (F/A, 9%, 45) = 755 * 525.8587
755 (F/A, 9%, 45) = $397,023.34
Read more about Arithmetic
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Complete Question
Liam O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The quoted annual premium for Liam is $8.39 per thousand dollars of insurance coverage Because Liam wants a $90,000 policy (which is 2.5 times his annual salary), the annual premium would be $755, with the first payment due immediately (i.e., at age 21). A friend of Liam's suggests that the $755 annual premium should be deposited in a good mutual fund rather than in the insurance policy. "If the mutual fund earns 9% per year, you can become a millionaire by the time you retire at age 65," the friend advises.
Answer:
The answer is C.
Explanation:
Reducing tax rate according to supply - side policy creates demand pull inflation.
Demand pull inflation is a situation whereby people have more buying power due to the availability of cash thereby leading to high demand and consequentially leading to an increase in the price of goods and services by suppliers.
That is the process where demand outplays supply due to the high purchasing power thereby causing price to increase which is the demand pull inflation effect.
