An accountant may amortize the expense of a durable good by dividing the total amount spent on the good by the number of years the good is expected to last. An economist may amortize the expense of a durable and never fully account for the total expense
Indicate whether the statement is true or false
True . The accountant uses a set of predetermined rules to amortize the total expense of the good. The economist amortizes based on the opportunity cost of the good, which may never sum to the total expense of the good.
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Which of the following are likely to increase investment and as a result, aggregate demand?
a. decreased demand for investment goods b. falling real interest rates c. rising real interest rates d. increased business taxes
The current exchange rate system is effectively a dirty float system
a. True b. False Indicate whether the statement is true or false
A bank has a 10 percent reserve requirement, $36,000 in loans, and has loaned out all it can given the reserve requirement
a. It has $3,600 in deposits. b. It has $32,400 in deposits. c. It has $39,600 in deposits. d. It has $40,000 in deposits.
Policies focused on putting people to work by reducing the regulatory requirements associated with hiring them would be considered
A. supply-side policies. B. monetary policies. C. demand-side and supply-side policies. D. demand-side policies.