Answer:
Aggregate demand shifts to the right.
Explanation:
Tax rebate means that the people have a tax benefit that increases their disposable income.
When there is additional income available for people to spend, there is an increased demand that shifts to the right the aggregate demand curve.
It is unconnected to the supply curve and inflation so the correct answer is option A.
Hope that helps.
Answer: D
Options included in the questions are:
“A. The demand for the magazine shifts to the left, and the supply curve shifts to the right. The equilibrium price falls, with an unknown change in the equilibrium quantity.
<span>B. The demand for the magazine does not change, supply curve shifts to the left. The equilibrium price rises, while the equilibrium quantity falls. </span>
<span>C. The demand for the magazine shifts to the right, and the supply curve shifts to the left. The equilibrium price rises, with an unknown change in the equilibrium quantity. </span>
D. The demand for the magazine does not change, and the supply curve shifts to the right. The equilibrium price falls, but the equilibrium quantity rises.”
The answer is D.
The demand for the magazine does not change even if the price of the computers goes down. It is the equilibrium price that will fall due to decrease on the price of inputs resulting to increase in quantity of a magazine produced.
<span> </span>
Answer:
Predetermined manufacturing overhead rate= $53,75 per machine hour
Explanation:
Giving the following information:
Order size:
Estimated activity cost= $585,866
Estimated machine hours= 10,900
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 585,866/10,900
Predetermined manufacturing overhead rate= $53,75 per machine hour
Answer:
= 9.5%
Explanation:
The weighted average cost of capital can be computed as follows:
After tax cost of debt :
= Before-tax cost of debt (1-T)
= 7.8% × (1-0.21)
= 6%
Market value
Equity = 105× 22= 2,310.00
Preferred stock = 25× 45= 1,125.00
Bonds= 98% × 1500=<u>1,470.00</u>
Type cost Market value Cost × equity
Equity 12.4 2,310.00 286.44
Preferred stock 8% 1,125.00 90.00
Bond 6% <u>1,470.00 </u> <u>1 90.58 </u>
4,905.00 467.02
WACC = (467.02/4,905.00 ) × 100
= 9.5%
