describe temporary and permanent income changes
describe
temporary and permanent income changes
Homework Answers
Answer : Temporary income change means that the income is changed for a short time period.
Permanent income change means that the income is changed permanently.
Income = Consumption + Savings
As consumption and savings are depends on income hence if income change then consumption and savings also change. In case of temporary income change the changes in consumption and savings occur for a short time period. In case of permanent income change the changes in consumption and savings occur permanently. These changes may be positive or negative based on positive and negative changes in income.
Events that cause temporary changes in the economy affect _____________ and events that cause permanent changes...
Events that cause temporary changes in the economy affect _____________ and events that cause permanent changes affect _____________. Question 5 options: only the short-run; only the long-run only the short-run; both the long-run and the short-run both the long-run and the short-run; only the long-run both the long-run and the short-run; both the long-run and the short-run
what are the temporary and permanent differences between Taxable and Accounting Income ?
what are the temporary and permanent differences between Taxable and Accounting Income ?
The income summary account is a temporary account. appears on the balance sheet. is a permanent...
The income summary account is a temporary account. appears on the balance sheet. is a permanent account. appears on the income statement.
Are temporary and permanent earnings the same as temporary and permanent accounts??? what are good examples
Are temporary and permanent earnings the same as temporary and permanent accounts??? what are good examples
Permanent income tax cuts tend to have a greater impact on current consumption than temporary tax...
Permanent income tax cuts tend to have a greater impact on current consumption than temporary tax cuts because permanent tax cuts affect---------- than temporary tax cuts 1. expectations about unemployment rates more 2. the government's debt positions less 3. expectations about long-run income prospects more 4. market liquidity ( money supply) less
Question 2 According to the permanent income hypothesis, how will the paths of borrowing and consumption...
Question 2 According to the permanent income hypothesis, how will the paths of borrowing and consumption change in response to: (a) A temporary decrease in income when it occurs. (3 points) (b) A permanent decrease in income when it occurs. (3 points) (c) Are the answers different if the changes in income are unanticipated, i.e. if they are 'news'? Comment on the size of the marginal propensity to consume and the size of the multiplier. (3 points)
-what is the difference between permanent and temporary accounts?
-what is the difference between permanent and temporary accounts?
Respectively, Accounts Receivable, Salary Expense and Salary Payable are: O A. all permanent accounts. OB. temporary,...
Respectively, Accounts Receivable, Salary Expense and Salary Payable are: O A. all permanent accounts. OB. temporary, permanent, and temporary accounts. OC. permanent, temporary, and permanent accounts OD. permanent, temporary, and temporary accounts.
Identify the account: T-temporary, P-permanent (20 points) T-temporary P-permanent Account Name Building Common Stocks Dividends Land...
Identify the account: T-temporary, P-permanent (20 points) T-temporary P-permanent Account Name Building Common Stocks Dividends Land Mortgage Payable Retained Earnings Salaries and Wages Expense Service Revenues Unearned Revenues Utilities Expense
Which assessment finding by the nurse characterizes a concussion? a Permanent confusion b Significant behavioral changes...
Which assessment finding by the nurse characterizes a concussion? a Permanent confusion b Significant behavioral changes c Hypertension d Temporary confusion
The income summary account is a temporary account. appears on the balance sheet. is a permanent account. appears on the income statement.
Question 2 According to the permanent income hypothesis, how will the paths of borrowing and consumption change in response to: (a) A temporary decrease in income when it occurs. (3 points) (b) A permanent decrease in income when it occurs. (3 points) (c) Are the answers different if the changes in income are unanticipated, i.e. if they are 'news'? Comment on the size of the marginal propensity to consume and the size of the multiplier. (3 points)
Respectively, Accounts Receivable, Salary Expense and Salary Payable are: O A. all permanent accounts. OB. temporary, permanent, and temporary accounts. OC. permanent, temporary, and permanent accounts OD. permanent, temporary, and temporary accounts.
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