Answer: B) GNMAs are considered to be the riskiest of the agency issues
Explanation:
The Government National Mortgage Association (GNMA) or Ginnie Mae as they are popularly known, are a Federal agency that guarantee the payment of interest and principal on securities by lenders that are approved by the Agency.
As a result, these securities are backed, like Treasury Bills, by the full faith and credit of the United States Government which means that they are the safest of Agency issues.
A Scrum Master is frustrated that her team finds no value during Iteration retrospectives, and the team has asked that she cancel all future ones. Which two specific anti-patterns are most likely present within the team’s retrospectives? (Choose two.)
Answer:
These two anti-patterns are most likely present within the team's retrospectives:
First, Team A members are not acquiring new knowledge and gaining experience. This anti-pattern discourages the team and makes the iteration retrospectives valueless. Team A members are supposed to be learning and gaining experience during the iteration retrospectives. But, once this is not being achieved, the members will likely not value the continued iteration retrospectives.
Two, the iteration retrospectives may become some ritualized formats that never change. There is no current or life in any static object or meeting. The Scrum Master should ensure that the iteration retrospectives are not just her retrospectives but the groups', otherwise, the retrospectives may become mere rituals for the team members to listen up to their master. The Scrum Master must establish a culture of trust so that the team can focus on improvements of the Scrum process.
Explanation:
The role of the scrum master is to ensure that the team lives agile values and principles and follows the agreed processes and practices. She must be able to clear team obstacles and establish an enabling and effective team environment.
Anti-patterns are those obstacles or problems that may arise to prevent the team from achieving its goals, making team members to view the iteration retrospectives as valueless exercises.
Scrum is an agile product development framework that emphasizes team formation, teamwork, and an effective team environment. This ensures that project development is handled in iterative processes with the team members regularly reflecting on their experiences during the daily scrum meetings in order to make adjustments for the achievement of their project goal.
The anti-patterns that are present within the teams' retrospectives are:
A. the team identifies improvements but is not allowed to address them, and
B. the team doesn't identify and commit to improvement items for how they do their work.
A scrum master is a person who performs scrum in the organization. it is the practice where people have the capability to identify complex problems, solve them, and deliver them in good quality.
An iteration retrospective is known as a process in which all the team members gather together for the discussion of the result of various iterations.
In the given case, the two anti-patterns are:
A. The team has identified the improvements but they are not allowed to address them. It is a process under the scrum that the team has the right to identify, rectify, and work on the improvements. When the team is not allowed to address the improvemets therefore they thought that the iteration process is not necessary.
B. The team does not identify and commit improvements and work upon them. This can be taken as a fault of the scrum managers or the scrum team for neglecting the team.
Therefore, options band B are correct.
To know more about scrum, refer to the link:
https://brainly.com/question/11981459
Tessmer Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Fixed Element per Month Variable element per tenant-day Revenue $ 0 $33.60 Wages and salaries $ 3,500 $ 7.40 Food and supplies 500 10.50 Facility expenses 9,500 4.70 Administrative expenses 6,600 0.30 Total expenses $20,100 $22.90 Actual results for January: Revenue $105,934 Wages and salaries $ 27,186 Food and supplies $ 32,485 Facility expenses $ 24,873 Administrative expenses $ 7,557 The food and supplies in the flexible budget for January would be closest to:__________.
(Round your intermediate calculations to 2 decimal places.)
A. $13,788
B. $12,963
C. $13,878
D. $13,070
Which of the following types of businesses might have an operating cycle longer than one year?
A. Ski resort.
B. Clothing retailer.
C. Florist.
D. Wheat farmer.
E. Commercial airplane manufacturer.
Answer: E. Commercial airplane manufacturer.
Explanation:
An operating cycle refers to the amount of time it will take a company to produce or purchase goods, sell them and receive cash for the goods.
A Commercial airplane manufacturer might have an operating cycle longer than a year as it takes time to manufacture planes and then to sell them due to their high prices and even at that with the huge amounts involved, the payments might not come all at once.
Broadway Inc. is considering a new musical. The initial investment required is $880,000. Every year, the free cash flow from the project is expected to be $80,000, continuing forever (Hint: think about a perpetuity).
a. What is the NPV of the project?
b. In fact, the annual cash flow of $80,000 is an expected value: there is a 50% chance that annual cash flow will be $180,000 and a 50% chance that it will be -$20,000. What is the expected NPV of the project if the company cannot abandon the project?
c. What is the true NPV of the project if the company can abandon the project after the first year?
d. What is the value of the option to abandon?
Answer:
Broadway Inc.
a. NPV of the project:
= $120,000 ($1,000,000 - 880,000)
b. Expected NPV of the project if the company cannot abandon the project:
= $120,000 ($1,000,000 - 880,000)
c. True NPV if the company can abandon the project after the first year:
= NPV = $74,080 - $880,000
= -$805,920
d. Value of the option to abandon:
= NPV = $74,080 - $880,000
= -$805,920
Explanation:
a) Data and Calculations:
Initial investment cost = $880,000
Assumed cost of capital = 8%
Expected annual free cash inflow = $80,000 in perpetuity
NPV = PV of Cash inflows minus PV of Cash outflows
PV of a perpetuity = Expected Annual Cash Inflows divided by cost of capital
= $80,000/0.08
= $1,000,000
$80,000 * 0.926 = $74,080
NPV = $74,080 - $880,000
= -$805,920
b) Broadway's Present Value of its perpetual annual cash inflow is calculated by dividing the cash inflow by the rate of interest, which is the cost of capital.
A company raised $50,000 in cash by taking a one-year loan of $10,000 and a 5-year loan of $40,000. Which of the following is the correct journal entry to record this transaction?
A. Debit short-term debt $40,000; debit retained earnings $10,000; credit cash $50,000
B. Debit short-term debt $50,000; credit cash $50,000
C. Debit cash $50,000; credit long-term debt $50,000
D. Debit cash $50,000; credit short-term debt $10,000; credit long-term debt $40,000
Answer:
D. Debit cash $50,000; credit short-term debt $10,000; credit long-term debt $40,000
Explanation:
The journal entry for the given transaction is shown below:
Cash Dr $50,000
To Short term debt $10,000
To Long term debt $40,000
(Being the raised of loan is recorded)
For recording this we debited the cash as it increased the assets and credited the short term debt and long term debt as it also increased the liabilities
hence, the correct option is D.
Crane Company wants to sell a sufficient quantity of products to earn a profit of $100000. If the unit sales price is $9, unit variable cost is $8, and total fixed costs are $200000, how many units must be sold to earn income of $100000?
Answer:
Break-even point in units= 300,000 units
Explanation:
Giving the following information:
Desired profit= $100,000
Selling price per unit= $9
Unit variable cost= $8
The total fixed costs are $200,000
To calculate the number of units to be sold, we need to use the break-even point in units formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (200,000 + 100,000) / (9 - 8)
Break-even point in units= 300,000 units
Assume that the required reserve ratio is set at 0.5 . What is the value of the money (deposit) multiplier
Answer:
2
Explanation:
The term "reserve ratio" may be defined as the the portion of the reservable liabilities which the commercial banks must hold onto, they cannot lend this reserves out or invest this money.
Given that the required reserve ratio is 0.5
Money (deposit) multiplier = 1/Required reserve ratio = 1/0.5 = 2
Thus the money multiplier value should be 2.
Expectations of inflation are always greater than actual inflation along the long-run Phillips Curve.
A. True
B. False
Answer:
True.
Explanation:
The statement is “True” because the Philip curve is the curve that exhibits the relationship between the inflation or price level and unemployment. If inflation rises, then unemployment falls. If inflation falls, then unemployment rises. This happens because there is a negative relationship between inflation and unemployment. However in the long run the Philip curve is a verticle line parallel to the inflation axis and that shows there is no trade-off. Thus the option A is correct.
If house A had a sale price of $70,000, monthly rent of $500, and a GRM of 140; House B had a sale price of $68,500, monthly rent of $490, and GRM of 139.8 and House C had a sale price of $70,500, a monthly rent of $485, and a GRM of 139.6, what would be the value of a property which rented for $495 in the same neighborhood, assuming that house A is the best comparable?
Answer:
$69,300
Explanation:
Given the following :
House A :
Sales price = $70,000
Monthly rent = $500
GRM = 140
House B :
Sales price = $68,500
Monthly rent = $490
GRM = 139.8
House C :
Sales price = $70,500
Monthly rent = $485
GRM = 139.6
The gross rent multiplier GRM is obtained as the proportion of the sale price of a property to it's monthly rent.
GRM = (Sales price / monthly rent)
If a property is rented for 495 and house A is the
most comparable, then
Sales price will be closest to:
GRM of House A × monthly rent of property
140 × $495 = $69,300
You need a 35-year, fixed-rate mortgage to buy a new home for $295,000. Your mortgage bank will lend you the money at an APR of 5.9 percent. However, you can only afford monthly payments of $1,350, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $1,350
Answer:
$434,780.69
Explanation:
The computation of the large the ballon payment would be is determined by using the future value formula i.e. to be shown in the attachment
Provided that
Present value = $295,000
Rate of interest = 5.9% ÷ 12 months = 0.49166%
NPER = 35 years × 12 months = 420 months
PMT = $1,350
The formula is shown below:
= -FV(Rate;NPER;PMT;-PV;type)
So, after applying the above formula, the future value is $434,780.69
Many professionals display their educational diplomas and awards on office walls to remind visitors of their expertise. This is an example of
Answer:
Visibility
Explanation: Visibility is a term used to describe the situation of being able to see or be seen by others persons. Many professionals continue to expose their competence and market themselves using various means of which includes the display of their professional certifications,awards and licenses etc this will help them to be easily seen and noticed by visitors and clients.
Bramble Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bramble incurs $6750000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is
Answer:
37%
Explanation:
The computation of the weighted average contribution margin ratio is shown below:
= Contribution margin ratio × weightage
= 30 × 65% + 50 × 35%
= 37%
We simply multiplied the contribution margin ratio with the weightage so that the weighted-average contribution margin ratio could come and the same to be considered
During August, Boxer Company sells $353,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $11,500 before adjustment. Customers returned merchandise for warranty repairs during the month that used $8,100 in parts for repairs. The entry to record the estimated warranty expense for the month is:_________ a) Debit Warranty Expense $10,720; credit Estimated Warranty Liability $10,720. b) Debit Estimated Warranty Liability $14,120; credit Warranty Expense $14,120. c) Debit Estimated Warranty Liability $8,100; credit Warranty Expense $8,100. d) Debit Warranty Expense $2,620; credit Estimated Warranty Liability $2,620.
Answer:
Debit warranty expense $14,120 ; Credit estimated warranty liability $14,120
Explanation:
Per the above information, the journal entry to record the customer warranty expense for the month is;
Warranty expense Dr. $14,120
To estimated warranty liability Cr. $14,120
The estimated liability is computed on credit sales for the year and the estimated percentage.
Given that;
Credit sales for the year = $353,000
Estimated percentage of credit sales = 4%
Therefore,
Estimated warranty liability
= $353,00 × 4%
= $14,120
You have analyzed the following four securities and have estimated each securityʹs beta and what you expect each security to return next year. The expected return on the market portfolio is 12%, and the relevant risk-free rate is 5%. Security Beta Expected return (based on your analysis) A -0.25 3.25% B 1.10 12.10% C 0.75 9.75% D 2.00 19.50% Refer to the information above. Based on your analysis, which of the securities is correctly priced? A) Security A B) Security B C) Security C D) Security D
Answer: A) Security A
Explanation:
Using CAPM, the expected return of a security is;
Expected return = Risk free rate + beta ( Market return - Risk free rate)
Security A
= 5% + -0.25 ( 12% - 5%)
= 3.25%
Security B
= 5% + 1.1 ( 12% - 5%)
= 12.7%
Security C
= 5% + 0.75 ( 12% - 5%)
= 10.25%
Security D
= 5% + 2.00 ( 12% - 5%)
= 19%
Name the departments, offices, or agencies that were created by the Dodd -Frank legislation
Answer:
Dodd Frank created another federal agency that oversees the consumer protection in financial sectors.
Explanation:
Dodd Frank was announced an act named The Dodd Frank Wall Street Reform And Consumer Protection by former president Barak Obama. The Dodd Frank was a statutory body of finance. But later on Donald trump said that Dodd Frank is a burdensome.
Dodd Frank has been created the FSOC. This is the system that monitor the financial. It gives the power to the deemed university. These firms were called too big to fail.
The Dodd Frank created another independent research financial within the treasury department.
Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $75,000; service cost, $14,000; interest cost, $6,000; benefits paid for the year, $9,000; ending PBO, $89,000; and the expected return on plan assets, $10,000. There were no other pension-related costs. The journal entry to record the annual pension costs will include a debit to pension expense for:
Answer:
A debit to pension expense for $10,000
Explanation:
Journal Entry for pension expenses:
Explanation Debit Credit
Pension Expense $10,000
Cash $10,000
(To record pension expenses)
Pension expenses for the year ended is comprised of the following components of pension cost.
Service Cost 14,000
Interest cost 6,000
Expected return on (10,000)
plan assets _______
Pension expenses $10,000
find examples of how intelligent systems can facilitate activities such as empowerment, mass customization, and teamwork
Explanation:
An intelligent system can be defined as a system that uses technology to transform data into relevant information for decision making, work improvement and problem solving.
In the workplace, these systems may be able to make work faster and more automated, reducing time, finding solutions to problems through intelligent learning, providing standards, etc., which helps with innovative work ideas and techniques that provide good teamwork and mass customization.
The training of employees can also be exercised through intelligent systems, such as platforms fed with information about courses or training, which guarantees a more dynamic and cheaper learning for the company.
During periods of rising prices, LIFO will produce the a.highest ending inventory. b.highest net income. c.lowest cost of goods sold. d.highest cost of goods sold.
Answer:
d.highest cost of goods sold.
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
During periods of rising prices, LIFO will produce the lowest ending inventory because what would be ending inventory would be the inventory earlier purchased at lower prices.
Because cost of goods would be higher due to rising prices, net income would be the lowest
Learning curves are useful for measuring work improvement for repetitive, simple jobs requiring short times to complete.
a) true
b) false
Foley Foods is a mid-size food processing facility that has had a significant increase in business lately. The firm needs to hire additional workers and develop a second shift to meet productivity needs. The HR manager at Foley Foods recommends implementing a safety program. Which of the following most likely undermines the need for a safety program?
A) Foley Foods has a high employee turnover rate.
B) All machines at Foley Foods are equipped with safety interlocks.
C) Foley Foods' workers' compensation costs are the highest in the industry.
D) Employees at Foley Foods have the option of wearing safety goggles and other PPE.
B. If the machines have safety interlocks already, why would there need to be a safety program?
"In a Real Estate Limited Partnership, the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property to the original amount of $8,000,000. The interest rate on both mortgages is the same. The purpose of this action by the General Partner is to:"
Answer:
Increase interest deductions for the limited partners.
Explanation:
In the given scenario the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property to the original amount of $8,000,000. The interest rate on both mortgages is the same.
Refinancing a loan means that more money is disbursed to the borrower before the termination of the loan.
When a loan is refinanced at the same interest rate the borrower pays more interest.
For example if the mortgage remains at $5,000,000 the interest paid on this principal will be lower.
When the loan is refinanced to $8,000,000 at the same Interest rate the interest paid will be higher because principal is higher.
So the general partner aims to increase the amount of interest paid.
Gamma Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31:
1. A one-year bank loan of $720,000 at an annual interest rate of 6% had been obtained on December 1.
2. The company's pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. Employees earn a total of $12,800 per week.
3. On December 1, rent on the office building had been paid for three months. The monthly rent is $7,000.
4. Depreciation of office equipment is based on an estimated useful life of five years. The balance in the Office Equipment account is $12,360; no change has occurred in the account during the year.
5. All fees totaling $19,800 were earned during the month for clients who had paid in advance.
What should be the balance of the Prepaid Rent?
a. $0
b. $7,000
c. $14,000
d. $21,000
Answer; c. $14,000
Explanation
On December 1, rent had been paid for 3 months. At a rate of $7,000 a month this will come to;
= 7,000 * 3
= $21,000
The Prepaid rent account will reduce every month by the rent due for that month. The balance on the Prepaid account as at December 31 will therefore have reduced by one month from December 1.
= 21,000 - 7,000
= $14,000
Oklahoma Oil Corp. paid interest of $780,000 during 2021, and the interest payable account decreased by $132,000. What was interest expense for the year
Answer:
$648,000
Explanation:
interest expense for the year = total interest paid - interest payable = $780,000 - $132,000 = $648,000
The interest payable was carried over form the previous year, so it was recorded as interest expense for 2020. This is why it cannot be included in the interest expense for this year.
Quamma Corporation makes a product that has the following costs: Per Unit Per Year Direct materials $ 18.50 Direct labor $ 16.10 Variable manufacturing overhead $ 3.40 Fixed manufacturing overhead $ 826,000 Variable selling and administrative expenses $ 5.10 Fixed selling and administrative expenses $ 574,000 The company uses the absorption costing approach to cost-plus pricing as described in the text. The pricing calculations are based on budgeted production and sales of 35,000 units per year. The company has invested $740,000 in this product and expects a return on investment of 19%. Required: a. Compute the markup on absorption cost. (Round your intermediate and final answer to 2 decimal places.) b. Compute the selling price of the product using the absorption costing approach. (Round your intermediate and final answer to 2 decimal places.)
Answer:
a. $2,156,000
b. $409,640
c. $2,565,640
Explanation:
First Calculate the Product Cost
Hint : Include Both Variable and Manufacturing Cost - Because Quamma Corporation uses absorption costing approach. Non manufacturing costs are not included in product cost.
Calculation of Total Product Cost
Direct materials ($ 18.50 × 35,000) $647,500
Direct labor ($ 16.10 × 35,000) $563,500
Variable manufacturing overhead ($ 3.40 × 35,000) $119,000
Fixed manufacturing overhead $826,000
Total Product Cost $2,156,000
Markup on absorption cost
Markup on absorption cost ($2,156,000 × 19%) = $409,640
Calculation of Selling Price
Total Product Cost $2,156,000
Add Markup on absorption cost $409,640
Selling Price $2,565,640
Mega Dynamics is considering a project that has the following cash flows:
Year Project Cash Flow
YEAR PROJECTED CASH FLOW
0 ?
1 2000
2 3000
3 3000
4 1500
The project has a payback of 2.5 years. The firm's cost of capital is 12 percent. What is the project's net present value (NPV)?
A) $765.91
B) $1,049.80
C) $2,761.32
D) $577.68
E) $3,765.91
Answer:
The NPV of the project is $765.91 and option A is the correct answer.
Explanation:
To calculate the initial outlay or cost of the project, we will use the payback period of the project. The payback period is the time taken by the project's cash flows to cover up the initial cost.
A payback period of 2.5 years means that the initial cost was,
Initial cost = 2000 + 3000 + 3000 * 0.5
Initial cost = $6500
To calculate the NPV of the project, we use the following formula,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost
Where,
CF1, CF2 , ... represents the cash flow in year 1, cash flow in year 2 and so on.r is the cost of capitalNPV = 2000 / (1+0.12) + 3000 / (1+0.12)^2 + 3000 / (1+0.12)^3 +
1500 / (1+0.12)^4 - 6500
NPV = $765.9137794 rounded off to $765.91
Using a neoclassical model, what will the level of cyclical unemployment be when an economy is producing at potential GDP
Answer:
Zero
Explanation:
When an economy runs in its potential manner, and the GDP with maximum potential is received, then the income distribution of the concerned economy is optimal.
Further, as per neoclassical model, if the economy is producing at potential GDP, that is the supply chain is 100% efficient, then then level of cyclical unemployment shall be 0%.
The neoclassical model is based on the study of supply and demand of products in the market, with the help of which income distribution, distribution of goods, and various other outputs is computed in this model.
Thus, when an economy is producing at potential level then the income distribution shall also be potential, accordingly cyclical unemployment shall be zero.
The Bakery produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.50 per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months:______.
Data Table
July 1,500 loaves
August 1,880 loaves
September 1,680 loaves
October 1,560 loaves
The bakery has a policy that it will have 20% of the following month's flour needs on hand at the end of each month. At the end of June, there were 150 pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter.
Begin the direct materials by determining the total quantity needed, then complete the budget.
July August September Quarter
Units to be produced
Multiply by: Pounds of flour needed per unit
Quantity needed (Ibs) for production
Plus: Desired ending inventory of direct materials
Total quantity (lbs) needed
Answer:
The Bakery
Direct materials budget
For the third quarter of year 202x
July August September Quarter
Budgeted production units 1,500 1,880 1,680 5,600
Materials required per unit 0.5 0.5 0.5 0.5
Materials needed for Px 750 940 840 2,530
+ Desired ending inventory 188 168 156 156
Total materials required 938 1,108 996 2,686
- Beginning inventory -150 -188 -168 -150
Units to be purchased 788 920 828 2,536
Cost per unit $2.50 $2.50 $2.50 $2.50
Total cost materials costs $1,970 $2,300 $2,070 $6,340
Winnebagel Corp. currently sells 30,000 motorhomes per year at $45,000 each, and 12,000 luxury motor coaches per year at $85,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 19,000 of these campers per year at $12,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motorhomes by 4,500 units per year, and reduce the sales of its motor coaches by 900 units per year.
Required: What is the amount to use as the annual sales figure when evaluating this project?
a. $336,300,000 b. $354,000,000 c. $371,700,000 d. $507,000,000 e. $228,000,000
Answer:
b. $354,000,000
Explanation:
Sales revenue from new portable campers $228,000,000
(19,000 campers * $12,000)
Add: Increased revenue from motor homes $202,500,000
(4,500 unit * $45,000 )
Less: Decreased revenue from Luxury $76,500,000
motor coaches (900 unit * $85,000 )
Annual sales figure when evaluating this $354,000,000
project
Suppose a hypothetical economy is currently in a situation of deficient aggregate demand of $64 billion. Four economists agree that expansionary fiscal policy can increase total spending and move the economy out of recession, but they are debating which type of expansionary policy should be used. Economist A believes that the government spending multiplier is 8 and the tax multiplier is 2. Economist B believes that the government spending multiplier is 4 and the tax multiplier is 8.
Compute the amount the government would have to increase spending to close the output gap according to each economist's belief. Then, for each scenario, compute the size of the tax cut that would achieve this same effect.
Policy Options for Closing Output Gap
Spending Multiplier Tax Multiplier Increase in Spending (Billions of dollars) Tax Cut (Billions of dollars)
Economist A 8 2
Economist B 4 8
1. Economist C favors tax cuts over increases in government spending. This means that Economist C likely believes that:
a. Tax cuts induce investment spending and improve workers incentives.
b. A dollar in tax cuts immediately and fully adds to aggregate demand.
2. Economist D argues that it is not possible to remove the economy from the recessionary gap by increasing government spending. Which of the following statements is consistent with Economist D's belief?
a. A rise in government spending does not crowd out private sector spending.
b. A rise in government spending completely crowds out private sector spending.
Answer:
1a.Economist A
Government spending multiplier= $8 billion
Tax multiplier=$32 billion
1b.Economist B
Government spending multiplier = $16 billion
Tax multiplier=$8 billion
2a
a. Tax cuts induce investment spending and improve workers incentives.
2b
b. A rise in government spending will tend to completely crowds out private sector spending.
Explanation:
1a.Calculation for Economist A government spending multiplier and tax multiplier
Using this formula
Spending multiplier =Deficient aggregate demand/Government spending multiplier
Tax multiplier =Deficient aggregate demand/Tax multiplier
Economist A
Government spending multiplier =64/8
Government spending multiplier=$8 billion
Tax multiplier=64/2
Tax multiplier=$32 billion
1b.Calculation for Economist B government spending multiplier and Tax multiplier
Economist B
Government spending multiplier =64/4
Government spending multiplier =$16 billion
Tax multiplier=64/8
Tax multiplier=$8 billion
2a. Economist C likely believes that the Tax cuts will induce investment spending and help to improve workers incentives.
2b.Economist D belief that a rise in government spending will completely crowds out private sector spending.
The primary purpose of a budget is to provide estimates of future revenues and expenses. True False
Answer:
True
Explanation:
The budget is prepared to estimate the company revenues and expenses for the given period of time. Through with the help of budget, the company can get to know for the revenues to be earned and the expenses to be incurred.
It also gives an overview of company expenses and revenues
hence, the given statement is true