Assume that a hypothetical economy with an MPC of 0.9 is experiencing a severe recession. Instructions: In part a, round your answers to 1 decimal place. Enter your answers as a positive number. In part b, enter your answers as a whole number. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion

Answers

Answer 1

Answer:

$10 billion

Explanation:

Calculation for By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion

Using this formula

Government multiplier spending=1/1-MPC

Where,

MPC=0.9

Let plug in the formula

Government multiplier spending=1/1-0.9

Government multiplier spending=1/0.1

Government multiplier spending=$10 billion

Therefore how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion will be $10 billion


Related Questions

Smith buys and sells securities. On December 15, 2018, Smith purchased $548,000 of Jones shares and elected the fair value option to account for the Jones investment. As of December 31, 2018, the Jones shares had a fair value of $594,000. In the 2018 financial statements, Smith will report (ignore taxes):

Answers

Answer:

Investment income of $46,000 in its income statement

Explanation:

Calculation for the amount that Smith will report in the 2018 financial statements,

Investment income =Fair value of $594,000-Purchased $548,000

Investment income =$46,000

Therefore Smith will report investment income of $46000 in its 2018 financial statements,

If you wish to accumulate $150,000 in 10 years, how much must you deposit today in a bank account that pays an annual interest rate of 12%

Answers

Answer:

PV= $48,295.99

Explanation:

Giving the following information:

Future Value (FV)= $150,000

Number of periods (n)= 10 years

Interest rate (i)= 12% = 0.12

To calculate the initial investment (PV), we need to use the following formula:

PV= FV / (1+i) n

PV= 150,000 / (1.12^10)

PV= $48,295.99

If the demand for a product decreases, what is likely to happen?
A.
The supply is likely to increase.
B.
The demand is likely to be inelastic.
C.
The price is likely to increase.
D.
The price is likely to decrease.


Please select the best answer from the choices provided

A
B
C
D

Answers

Answer:

The answer is D

Explanation:

It's D because it's demand not quantity demanded

In the _____________ stage of a project the product is delivered to the customer and resources are released from the project

Answers

Answer: closing

Explanation:

The project life cycle is referred to as a framework that shows how projects successfully move from the beginning to the end.

It is in the closing stage that the product will be delivered to the customer and the resources are released from the project.

Product is termed as the management term for the goods and services that are availed by the firm to the customer at the prevailing price in the market as per the affordability of the customers.

The correct answer is a closing stage.  

The closing stage is termed as the stage in which the products or the projects both are withdrawn at the end of the events when the customer has been delivered with the desired goods and services.

The last stage of the project service life is really the Post Implementation Phase. Handing over deliverables to your customer, giving documents to the business, canceling supplier contracts, releasing workers and equipment, and notifying participants of the project's completion are all part of project closure.

To know more about the stages of the product and services that can be delivered, refer to the link below:

https://brainly.com/question/6508578

Luther's Operating Margin for the year ending December 31, 2008 is closest to: Group of answer choices 0.5% 0.7% 5.4% 6.8%

Answers

Answer:

the operating margin is 5.4%

Explanation:

The computation of the operating margin is shown below:

As we know that

Operating Margin = Operating Income ÷ Sales

= $31.3 ÷ $578.3

= 5.4%

Hence, the operating margin is 5.4%

It could be determined by dividing the operating income from the sales

LPC issued the bonds: Multiple Choice Cannot be determined from the given information. At par. At a premium.

Answers

Answer:

At a premium

Explanation:

As in the question it is given that

The issued price is $207,020

And, the face value is $200,000

So as we can see that

The issued price i.e. $207,020 is more than the face value i.e. $200,000

So the bond is issued at a premium also the difference of $7,020 would be transfer to the premium account

Evaluate the extent to which Wal-Mart's previous revenue policy was consistent with the revenue recognition principle.

Answers

Answer:

Wal-Mart's previous revenue policy was inconsistent with the revenue recognition principle.  It used to recognize revenue when performance obligations have not been met.

Explanation:

In response to SAB 101 issued by the Stock Exchange Commission in 1999, Wal-Mart changed its revenue recognition policy for layaway transactions.  Layaway transactions are those in which Wal-Mart sets aside merchandise for customers who make partial payment.  Before SAB 101, Wal-Mart recognized all revenue on the sale at the-time of the layaway. After the change, Wal-Mart does not recognize revenue until customers satisfy all payment obligations and take possession of the merchandise.

The marketing activity that receives the most attention from those concerned with ethical considerations is product strategy, but promotion, marketing research, and pricing also get their share of attention. True False

Answers

Answer:

True.

Explanation:

This statement is true, due to the fact that the marketing activities whose competences are ethical considerations, encompass the product strategy as a focus, but also the promotion, marketing research and prices. Ethical considerations in relation to the marketing of a product, means that the product will meet the demands of consumers and satisfy their wants and needs along with the ethical considerations contained in the product. As an example we can mention a makeup company that uses stamps that do not perform tests on animals and uses biodegradable packaging, this company is attesting to consumers ethical values ​​required by its potential audience, so research is needed to identify what their customers' demands are , price strategy in product development and commercialization, etc.

On 1/1/27, Frankfort Company sold 100 components at $700 each. All sales were cash sales. Estimated total cost servicing the components was $1,300 each year of the three-year-warranty. Frankfort spent $1,400 servicing the components in 2027. This is considered an assurance-type warranty. Using the Expense Warranty approach, what is the 12/31/27 Warranty Liability

Answers

Answer:

the 12/31/27 Warranty Liability is $2,500

Explanation:

An assurance type warranty gives a customer assurance that the Good or Service will function or work as intended.

There is no option on the customer to take the warranty or not. Therefore, an assurance type warranty is not a separate performance obligation for revenue recognition.

Assurance type warranties are accounted for in terms of IAS 37 : Provisions.

Entries that Frankfort Company will have made Using the Expense Warranty approach will be :

Date : 1/1/27

Debit : Warranty Expense $1,300

Credit : Warranty Provision $1,300

Providing for amount it will cost the entity in 2027

Date : 12/31/27

1st increase the provision

Debit : Warranty Expense $100

Credit : Warranty Provision $100

then utilize the provision

Debit : Warranty Provision $1,400

Credit : Cash $1,400

When warranty claim is subsequently received

Conclusion :

Warranty liability remaining = $3,900 - ($1,300 + $100)

                                              = $2,500

A laptop assembly plant needs to increase its productivity in a competitive business environment while also reducing the number of workers and resources associated with the production process. The strategy that this company should use is called:

Answers

Answer:

an output-based approach

Explanation:

In this scenario, the company should use an output-based approach. This is any approach whose decisions revolve around cutting down costs while at the same time increasing production. Therefore, drastically increasing the plant's efficiency. The more products that are created the more income that the plant can generate. If the costs are also cut down this income becomes more profit for the company. This is exactly what the laptop assembly plant needs to compete in this market.

An investment is expected to yield $300 in three years, $500 in five years, and $300 in seven years. What is the present value of this investment if our opportunity rate is 5%

Answers

Answer:

Total PV= $864.11

Explanation:

Giving the following information:

Cash flows:

Cf3= $300

Cf5= $500

Cf7= $300

Opportunity rate= 5%

To calculate the total present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

PV1= 300/(1.05^3)= 259.15

PV2= 500/(1.05^5)= 391.76

PV3= 300/(1.05^7)= 213.20

Total PV= $864.11

what my friend sent me ;-;
(sorry if its blurry)

Answers

Aww how sweet love it

Identify at least four different types of financial statement users and discuss why each would use the financial statements.

Answers

Answer:

Government authorities :

They will use the financing statement to ensure the fairness of the business and to receive proper amount of tax.

Investors :

Current or potential investors would check financial statements to ensure they will suitable returns after investment.

Creditors :

They will check financial statements to make sure they get their due money back.

Employees :

The employees will ask for bonus if the company performance in statements is good,

A study of college graduates involves three variables: income level, job satisfaction, and one-way commute times to work. List some ways the variables might be confounded. (Select all that apply.)

Answers

Answer:

One-way commute times may be long because affordable housing is distant from the job.

A working spouse could affect all three variables.

People might be very satisfied with their career as long as the income is high.

People may have a career following their passion, but have a low income or a long commute.

Explanation:

As we know that the study in college for graduation generally includes the three types of variables i.e. level of the income, job satisfaction and the one way commute

Now there are some ways that may be cofounded such as the one way commute could belong as if the house is far from the job, for the working spouse the above three variables could be impacted, when the income of the people are high they feel very satisfied and they follow their passion but they have the low income or long commute travelled at the same time

Question 3 of 10
If
you consistently work
your job.
it's possible that you will become burned out at
A. full time
B. undertime
C. overtime
D. part time

Answers

c. overtime

overtime is working more than initially required

Answer:

C

Explanation:

The answer is C, as working full time is normal, part time is only just part time, and under time is not working a lot at all.

Suppose that the stock return follows a normal distribution with mean 20% and standard deviation 40%. What is the 5% VaR (value-at-risk) for this stock

Answers

Answer:

The 5% VaR (value-at-risk) for this stock 0.858

Explanation:

Value at risk determines the value of the investment at risk of loss. It shows how much of the investment might lose in the given market conditions.

Now deter,ine the value at risk formula

Var = Mean + Standard Deviation x Z score value

Where

Mean = 20%

Standard Deviation = 40%

Z score value = Z Score at significance 5% = 1.645

Placing values in the formula

Var = 20% + 40% x 1.645

Var = 0.2 + 0.4 x 1.645

Var = 0.2 + 0.658

Var = 0.858

In your own words, define “ study habits.”

Answers

Answer:

Study skills, academic skill, or study strategies are approaches applied to learning. They are generally critical to success in school, considered essential for acquiring good grades, and useful for learning throughout one's life.

I don't know if that was the answer you were looking for.. but that's the best I can do.

Answer:

Study skills, academic skill, or study strategies are approaches applied to learning. They are generally critical to success in school, considered essential for acquiring good grades, and useful for learning throughout one's life.

Explanation: Hope it helps ^w^

How much can Jeff claim as an itemized deduction for taxes paid if he paid the following in 2019: (state income tax withheld of $5000; real estate taxes of $3500; personal property taxes based on value of his car of $1000, state income tax owned for 2016 of $450; and gas tax of $675)

Answers

Answer:

The maximum state and local tax deduction is $10,000 for all combined state and local taxes paid during the year. That is the maximum amount that Jeff would be able to deduct if he itemizes. In this case, the maximum deduction would be = $5,000 + $3,500 + $1,000 + $450 = $9,950.

Unless Jeff has other applicable deductions, he would be better off by taking the standard deduction.

When preparing a trial balance worksheet, what step would Tom complete next if he has already prepared a trial balance, adjusted entries and prepared an adjusted trial balance

Answers

Answer:

He must prepare the income statement.

Explanation:

The last entries of the trial balance are temporary accounts that belong to the income statement. Tom should focus on them after finishing the adjusted trial balance. After he prepares the income statement, then he can proceed to close all the temporary accounts and calculate retained earnings.

Canon was able to redesign the copying machine so that it didn't need professional service—reliability was built directly into the machine, and the user could replace parts, such as the cartridge. What Xerox had not envisioned was the possibility that the components of the copying machine could be put together in an altogether different way that was more user-friendly. This example describes:______

a. architectural innovation.
b. incremental innovation.
c. radical innovation.
d. disruptive innovation.

Answers

Answer:

a. architectural innovation.

Explanation:

From the question we are informed about Canon who was able to redesign the copying machine so that it didn't need professional service—reliability was built directly into the machine, and the user could replace parts, such as the cartridge. What Xerox had not envisioned was the possibility that the components of the copying machine could be put together in an altogether different way that was more user-friendly. In this case This example describes architectural innovation.

Architectural innovation can be regarded as innovation of an architecture which involves

reconfiguration of products technology that has been in existence so that improvement can be made. It is way to innovate products that can undergo changes as well as modified one that has its components link together.

If the contribution margin ratio is 45%, target operating income is $50,000, and the sales revenue needed to achieve the target operating income is $300,000, what are total fixed expenses

Answers

Answer:

$85,000= fixed costs

Explanation:

Giving the following information:

Contribution margin ratio= 0.45

Desired profit= $50,000

Break-even point in sales with desired income= $300,000

To calculate the fixed costs, we need to use the following formula:

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

300,000  = (fixed costs + 50,000) / 0.45

135,000 - 50,000 = fixed costs

$85,000= fixed costs

If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving $250 today or:

Answers

Answer:

the indifference between receiving $250 today or is $235.85

Explanation:

The computation of the indifference between receiving $250 today or is shown below:

Here we determine the present value

= Amount ÷ (1 + risk free rate of interest)

= $250 ÷ (1 + 0.06)

= $250 ÷ 1.06

= $235.85

Hence, the indifference between receiving $250 today or is $235.85

The same is relevant and considered too

Assume the appropriate discount rate is 2% per period. The discount factor for a cash flow 10 periods from today is closest to

Answers

Answer:

Assume the appropriate discount rate is 2% per period. The discount factor for a cash flow 10 periods from today is closest to:

0.820.

Explanation:

The Discount Factor assigns some time-based weights to cash flows in order to determine the present value of future cash flows.  It is calculated by adding the discount rate to one, which is then raised to the negative power of a number of periods.  This implies that the use of the discount factor enables one to determine the present value of future cash flows, thereby reducing the future value to the present value.  The discount factor can easily be found using the present value table.

Seadrill Engineering licensed software to oil-drilling firms for 5 years. In addition to providing the software, the company also provides consulting services and support to ensure smooth operation of the software. The total transaction price is $420,000. Based on standalone values, the company estimates the consulting services and support have a value of $120,000 and the software license has a value of $300,000. Assuming the performance obligations are not interdependent, the journal entry to record the transaction includes:

a. a credit to Sales Revenue of $420,000.
b. a credit to Unearned Service Revenue of $120,000.
c. a credit to Sales Revenue for $300,000 and a credit to Unearned Service Revenue of $120,000.
d. a credit to Service Revenue of $120,000.

Answers

Answer:

c. a credit to Sales Revenue for $300,000 and a credit to Unearned Service Revenue of $120,000.

Explanation:

In the scenario of accepting money for an extended warranty/support service, the seller in the case has agrees to provide services in the future. The revenue is not earned until the earning process is substantially completed in the future. So the correct option is c.

Which of the following is NOT one of the suggested steps for time management? a. Work on tasks in order of importance b. Identify trivial activities c. Make a list every morning d. Impression management

Answers

Answer:

d. Impression management

Explanation:

In order to effectively manage ones time, it is important make a list of tasks and to order the tasks in order of importance. This would ensure that the most important tasks are done first.

It is also important to identify trivial tasks. Trivial tasks can be identified and eliminated.

In a competitive market, the quantity of a product produced and the price of the product are determined by:

Answers

Answer:

All buyers and sellers

Explanation:

A competitive market is a market where there are lots of producers who produces goods and service hence compete with one another with a view to providing and supplying goods and services that suits the needs of consumers.

In a competitive market, there are no barriers to entry and exit. Also, there are many buyers and sellers, hence there is adequate information about the price of a product. There are also no cost attached to transactions, undifferentiated products and both buyers and sellers determines the quantity of a product produced and the price of the product.

The divisions of a corporation, working together, accomplished an ROI that is greater than they did when each division worked independently. This corporation is said to have achieved ________.

Answers

Answer:

Synergy

Explanation:

Each of these division have now come together and have achieved more than they used to get independently.

This means that they have achieved synergy. Synergy occurs when two companies merge together, as in the case of this two divisons, and by merging they accomplish more together than they would have accomplished apart. synergies can be achieved through the creation or combination of products or markets.

Determine the number of cycles per day and the production quantity per cycle for this set of vehicles: Product Daily Quantity A 18 B 16 C 4 D 16

Answers

Answer:

The Number of cycles is 4

Product   Daily Quantity    Daily Unit per cycle

     A                 18                     18/4 = 4.5 units

     B                 16                     16/4 = 4 units

     C                 4                       4/4 = 1 unit

     D                 16                     16/4 = 4 units

What are some of the advantages and disadvantages of a) individuals as innovators, b) firms as innovators, c) universities as innovators, d) government institutions as innovators, e) nonprofit organizations as innovators

Answers

Answer:

a. Individuals as innovators

Advantages

1. Individuals have no limits (no hard rules) as to whom they can sell their innovation to.

2. An individual can be able lead a successful career with their innovation is any company

Disadvantages

1. Capital is a major limit for most individuals who may not be able to market their innovations.

2. Lack of Knowledge in Patenting innovation ideas have led to most individuals losing their innovation to others.

b. firms as innovators

Advantages

1. Successful innovation can help a firm improve its processes and increase its revenues.

2. Innovation in a unique product can often lead a firm to monopoly as the product becomes a necessity

Disadvantages

1. Firms have more rivalry such that others can copy the innovation or produce another close substitute which can render all efforts to a loss.

2.It takes so much time for the innovation to be approved in a firm as some structures of authority have to be followed and also depending on the culture of the firm towards innovation.

c. universities as innovators

Advantages

1. Universities are better able to raise capital through the Research Funds granted to them by stakeholders.

2. Innovation increases a University`s reputation and improves it rankings.

Disadvantages

1. High dependence on government agencies for funding by Universities means Innovation successes are easily affected by the fiscus.

2. Universities are not effective at marketing Innovations on their own.

d. government institutions as innovators

Advantages

1. The government can increase revenue by improving processes and cutting costs.

2. Innovation can improve transparency and help improve governance and administration.

Disadvantages

1. Adoption of innovation is usually slow as it has to pass so much bureaucracy.

2. Most personnel prefer working in private institutions hence the personnel to drive innovation in governments may be unavailable or inadequate

e. nonprofit organizations as innovators

Advantages

1. There is so much option for funding of innovations ranging from Individuals, Companies and Government

2. Most innovations are driven by Human Need hence their increased success.

Disadvantages

1. The innovation may not be able to generate the revenue to cover the costs.

2. The organizations are usually lacking personal's to drive innovations as people prefer to be paid more for their work.

Explanation:

Innovation is defined as the creation, development and implementation of a new product, process or service. The aim of  innovation is to  improve efficiency, effectiveness or competitive advantage. Innovation presents advantages and disadvantages to various players as listed above.

On July 1, a company paid the $3,360 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31

Answers

Answer:

$1,680

Explanation:

Based On the information given if on July 1 the company paid the amount of $3360 as a premium on a year insurance policy which as well include benefits beginning on that date, What will be the insurance expenses on the annual income statement for the first year ended December is $1,680 Calculated as:

Insurance expenses=6/12*$3360

Insurance expenses=$1,680

Therefore What will be the insurance expenses on the annual income statement for the first year ended December is $1,680

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