Answer:
12.5
Explanation:
Money multiplier gives the maximum amount money supply can increase to given the reserve ratio
Money multiplier = 1 / r = 1 / 0.08 = 12.5
Answer:
Relevant costs are costs that will be affected by a managerial decision. Irrelevant costs are those that will not change in the future when you make one decision versus another.
Explanation:Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.
Answer:
Option C: 8.44 times
Explanation:
Quick ratio(also called as acid test ratio) is the indicator of a company's liquidity position at a very short period which only considers the most liquid assets and ignores Inventory & other assets which cannot be realised immediately.
As we know that Quick Ratio = [Current Assets - Inventory - Prepaid Assets] / Current Liabilities
2.00 = $79,000 - Inventory - 0] / $27,650
=> Inventory = $23,700
Inventory turnover ratio gives us the number of times the company sells and replaces its inventory during the period.
Annual Sales = $200,000
Inventory Turnover Ratio = Sales / Average Inventory
=> $200,000 / $23,700 => 8.44 times
Answer:
$22,000
Explanation:
Given that
1st house rented = 10,000
2nd house estimated rent = 12,000
Therefore,
The two houses would contribute
= 10,000 + 12000
= $22,000
Note: Rent is considered as consumption and as a result, rent is added into the GDP. Also, in GDP estimation, imputed rent which is the amount a house owner is willing to rent a house away for if he decides to is calculated as part of the GDP.
The correct option is: For each unit of the good that is sold, buyers bear <u>one-half of the tax burden and sellers bear one-half of the tax burden.</u>
<u>Explanation</u>:
Incidence of tax is a term referred in economics which deals with division of taxes. Tax incidence refers to division of tax among the buyer and seller for a product. The tax incidence is related to the price elasticity of supply and demand.
When a product is sold, the buyer of the product is charged with one-half of the tax burden and the seller of the product bears the other-half of the tax burden.
The incidence of tax can be observed in two ways:
i) Formal incidence
ii) Effective incidence
