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

Answers

Answer 1

Answer: $2.5 billion

Explanation:

You need to first calculate the multiplier.

The multiplier is the amount that shows the effect of an increase in government spending on the aggregate demand of a country.

It is calculated as:

= 1 / ( 1 - MPC)

= 1 / ( 1 - 0.9)

= 10

Increase in aggregate demand = Government spending * multiplier

25 billion = G * 10

G = 25 billion / 10

= $2.5 billion


Related Questions

Critical Chain Project Management (CCPM) attempts to keep the most highly demanded resource busy on critical chain activities, but not overloaded.

a. True
b. False

Answers

Answer:

True

Explanation:

Critical-Chain

This was introduced or originated by Eli Goldratt in 1997. Its aim is to challenges conventional project management approaches and absolute dependence on TOC principles. The idea of what to change or eliminated is the largely rooted behaviors that is common with the traditional project management practices. It is very multitasking anf it is the longest string of reliance that occur on the project.

Critical- Chain Approach

This approach simply covers project network as it ca be limited by both resource and technical reliance/dependencies. each type of limitations can create task reliance.

The Summary of Critical Chain Approach

1.) use Aggressive but Possible Times (ABPT) for task durations

2.) identify the critical chain by accounting for resource dependencies

3.) use buffer management to track project progress etc.

lannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company

Answers

Answer:

$2,200,000

Explanation:

Margin of safety means by how much sales can fall before a firm starts making a loss.

Margin of safety  = Current Sales - Break even sales

where,

Break even sales = Fixed Cost ÷ Contribution margin ratio

                             = $800,000 ÷ 0.40

                             = $2,000,000

therefore,

Margin of safety  = $4,200,000 - $2,000,000

                            = $2,200,000

What percentage of authorized shares was issued by Coca-Cola at December 31, 2015, and by PepsiCo at December 26, 2015

Answers

Answer:

December 26

Explanation:

Because Pepsi Co is buy

In a standard cost accounting system, the entry to record purchase of raw materials on account for $13500 when the standard cost is $12620 includes:______.
a. debit to Raw Materials Inventory for 12,750, debit to Materials Price Variance for $750 and credit to Accounts Payable for $13,500.
B. debit to Materials Price Variance for S7S0 and credit to Accounts Payable for $750.
c. debit to Raw Materials Inventory for $13,500 and credit to Accounts Payable of $13,500.
d. debit to Raw Materials Inventory for $12,750 and credit to Accounts Payable of $12,750.

Answers

Answer:

a. Debit to raw material inventory for $12,750, debit to material price variance $750 and credit to account payable for $13,500.

Explanation:

Date  Journal Entry                                   Debit      Credit

         Raw Material Inventory                   $12,750

         Material Price Variance                   $750

               Accounts Payable                                     $13,500

On January 1, 2017, ARC Inc. issued 100 5-year bonds, with a face value of $1,000 each and a coupon rate of 10%, payable semiannually. The interest is paid on June 30 and December 31 of each year. The market rate of interest at the time that the bonds were issued was 13%, so that the bonds were sold for $892 each.1. Interest expense for the January 1–June 30 period was $_____.
2. Interest expense for the July1–December 31 period was $_____.
3. Book value of Bonds on June 30 was $_____.
4. Book value of Bonds on December 31 was $_____.
5. Interest payment on June 30 was $_____.

Answers

Answer:

ARC Inc.

1. Interest expense for the January 1–June 30 period was $__5,798___.

2. Interest expense for the July 1–December 31 period was $__5,850___.

3. Book value of Bonds on June 30 was $__89,998___.

4. Book value of Bonds on December 31 was $__90,848___.

5. Interest payment on June 30 was $__5,000___.

Explanation:

a) Data and Calculations:

January 1, 2017:

Face value of issued bonds = $100,000 ($1,000 * 100)

Coupon rate of interest = 10%

Effective rate of interest = 13%

Price of issued bonds =        $89,200 ($892 * 100)

Discount on bonds =             $10,800 ($100,000 - $89,200)

Interest payment = June 30 and December 31 (semiannually)

June 30:

Interest expense = $5,798 ($89,200 * 6.5%)

Cash payment =     $5,000 ($100,000 * 5%)

Amortization of discount = $798

Value of bonds = $89,998 ($89,200 + $798)

December 31, 2017:

Interest expense = $5,850 ($89,998 * 6.5%)

Cash payment =     $5,000 ($100,000 * 5%)

Amortization of discount = $850

Value of bonds = $90,848 ($89,998 + $850)

A natural monopoly arises whenA. a single firm aggressively forces other competitors to exit and industry.B. a single firm has a monopoly over natural resources.C. two firms merge into a single firm in order to capture more of the market.D. a single firm can produce more cheaply than multiple firms due to a downward-sloping average total cost curve.

Answers

Answer:

D

Explanation:

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

A natural monopoly occurs due to the high start-up costs or a large economies of scale.

Natural monopolies are usually the only company providing a service in a particular region  

Characteristics of natural monopolies

they have a large fixed cost The firms have a low marginal costThey occur naturally through the free market. It does not occur by government regulation or any other force

A bond that pays interest semiannually has a price of $941.35 and a semiannual coupon payment of $26.00. If the par value is $1,000, what is the current yield

Answers

Answer:

5.52%

Explanation:

Calculation to determine the current yield

Current yield = ($26.00 × 2)/$941.35

Current yield=$52/$941.35

Current yield= .0552*100

Current yield= 5.52%

Therefore the Current yield is 5.52%

When a market is in equilibrium, the: multiple choice 1 quantity demanded equals the price. quantity demanded equals the quantity supplied at the market price. quantity demanded equals the quantity supplied and they both equal the price. quantity supplied equals the price. The market for cell phones reaches equilibrium because cell phone sellers have an incentive: multiple choice 2 to decrease quantity and so do cell phone consumers, so the price goes to to equilibrium. for prices to rise and some cell phone consumers will not buy at higher prices, driving the price to equilibrium. to increase quantity and so do cell phone consumers, so the price goes to to equilibrium. for prices to fall and some cell phone consumers only buy at higher prices, driving the price to equilibrium.

Answers

ANSWER:

2 Batteries

Explanation:

If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on $2,000,000 in average daily remittances and $2,500,000 in average daily disbursements and its return on freed-up funds is 10%, what is the maximum that it should spend on the system

Answers

Answer: $850,000

Explanation:

The maximum amount that'll be spent on the system goes thus:

Additional collections will be:

= $2,000,000 × 3 days

= $6,000,000

Delayed disbursements will be,:

= $2,500,000 × 1 day

= $2,500,000

Then, the increment on funds will be:

= Additional collection + Delayed disbursement

= $6,000,000 + $2,500,000

= $8,500,000

Hence, maximum amount will be:

= 10% × $8,500,000

= $850,000

what is the primary benefit people receive in exchange for paying premiums to an insurance company

Answers

Answer:

The insurance company will pay for covered expenses

With premium rates from insurance companies, the overall protection is much more guaranteed than a regular, and perhaps the insurance will cover more than regular insurance.

A benefit that people receive in exchange for paying premiums is that insurance company B.will pay for covered expenses.

What is insurance?

The insurance can be regarded as a process of insuring one's property or life in case of danger or any future problems.

The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.

Therefore, option B is correct because, when people pay their premiums, the company will be available to covered expenses.

Learn more about insurance here,

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Swifty Corporation purchased a truck at the beginning of 2020 for $109600. The truck is estimated to have a salvage value of $4100 and a useful life of 123000 miles. It was driven 18000 miles in 2020 and 26000 miles in 2021. What is the depreciation expense for 2020?
a. $37752
b. $22308
c. $16639
d. $15444

Answers

Answer:

Annual depreciation= $15,444

Explanation:

Giving the following information:

Purchase price= $109,600

Salvage value= $4,100

Useful life= 123,000

Miles driven 2020= 18,000

To calculate the depreciation expense, we will use the units-of-production method:

Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles drive

Annual depreciation= [(109,600 - 4,100)/123,000]*18,000

Annual depreciation= 0.858*18,000

Annual depreciation= $15,444

When Get the Glare Out needed some information about the potential market for its product, the marketing team looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in its self-darkening windshield. The type of information the marketing team was using is referred to as Multiple Choice surveys. focus groups. primary data. secondary data.

Answers

Answer:

secondary data.

Explanation:

Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.

Secondary market research can be defined as a method designed to determine the demographics of a particular target market.

A secondary data can be defined as any form of data that has been obtained or collected earlier by someone else through primary sources for their own purpose and made readily available for other researchers to use. Thus, a secondary data is a type of data that has been previously obtained or collected.

In this scenario, the type of information the marketing team was using is referred to as secondary data because it looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in manufacturing its self-darkening windshield.

In conclusion, a secondary data is typically reliant or based on the primary source of information and as such it isn't a first hand experience.

Market efficiency is probably the most controversial concept in finance. Even recent winners of the Nobel Prize in Economics come down on opposite sides of the issue. Nonetheless, it is important for you to grapple with this idea. It has very important practical implications for investment decisions, including (especially) for your personal investment decision. In particular, should you pursue active or passive strategies

Answers

Answer:

Active strategies should be pursued when the market is more volatile, with larger fluctuations over a shorter period of time, that require a more active management of a portfolio, in order to take advantage of fast changing positions in different assets, and also in order to avoid possible losses due to staying in particular positions for too long.

Passive strategies is more long-term focused, and should be pursued when the economy is more stable. Passive strategies should be analyzed carefully before execution because once the passive investment is made, the idea is to keep the position for a long period of time instead of buying and selling constantly as in a active strategy.

Gotham City acquires $25,000 of inventory on November 1, 20X7, having held no inventory previously. On December 31, 20X7, the end of Gotham City's fiscal year, a physical count shows $8,000 still in stock. During 20X8, $6,500 of this inventory is used, resulting in a $1,500 remaining balance of supplies on December 31, 20X8.

Based on the preceding information, what would be the correct account balances for 20X7 if Gotham City used the purchase method of accounting for inventories?

Answers

Answer:

$25,000; $8,000

Explanation:

Based on the information given , we were told that they acquires the amount of $25,000 of inventory on NOVEMBER 1, 20X7, in which on DECEMBER 31, 20X7, a PHYSICAL COUNT shows $8,000 was still in stock which means wthat the CORRECT ACCOUNT BALANCES for 20X7 if Gotham City used the PURCHASE METHOD of accounting for INVENTORIES will be Expenditure of the amount of $25,000 and Inventory of supplies of the amount of $8000.

The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets held by this fund appreciated by 1.4 percent. If you had invested $50,000 in this fund at the start of the year, how many shares would you own at the end of the year

Answers

Answer:

Missing word "Final shares=? Net asset value=?"

Final shares is computed as follows:

= (Amount invested / NAV per share) * (1 + Fund appreciation)

= ($50,000 / $ 1) * (1 + 0.014)

= $50,000 * 1.014

= $50,700

As know that this is a Money Market Mutual Fund, hence the Net asset value of this fund at the end of the year will be also $1.

The specific pace and quota of work and tight surveillance indicate that company 1 has a(n) _______ culture.

Answers

Question options:

-traditional

-contingency

-androgynous

-mechanistic

-organic

Answer:

mechanistic

Explanation:

The mechanistic culture in an organization is one that works by strict rules, structure and guidelines. It is different from the organic culture that is more open and flexible. Mechanistic organizations are characterized by hierarchy and bureaucracy, specifying labour divisions for it's employees in a formal, close-knitted and "mechanistic" approach. mechanistic organizations can be found among older organizations such as universities, hospitals, government organizations etc. Organic organizations can be found among newer organizations such as tech companies.

In a mechanistic culture-based organization, the specific pace, quota of work and tight surveillance are indicator that the company practice such culture.

The mechanistic culture is usually adopted by organization because its works by strict rules, structure and guidelines.

Mechanistic organizations can be found among older organizations such as universities, hospitals, government organizations etc.

In conclusion, the specific pace and quota of work and tight surveillance indicate that company 1 has a mechanistic culture,

Read more about mechanistic culture

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Gary is walking through his organization's buying process and has identified some additional steps that are needed in a B2B transaction. What would be included in those additional steps

Answers

Answer: order-routine specification

problem recognition

Explanation:

Business-to-business transactions occur when a business makes a transaction with another business. It should be noted that this takes place when the business is sourcing materials which will be used for their production process.

Since Gary is walking through his organization's buying process and has identified some additional steps that are needed in a B2B transaction, the additional steps should include the order-routine specification and the problem recognition.

In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $30,000 at the end of eight years if he can invest money at:

Answers

Answer:

The correct answer is:

(1) $15,054

(2) $12,990

Explanation:

The required table is not given in the question. Please find below the attachment of the table.

Given:

Future value,

= $30,000

If discounting rate is 9%, the present value will be:

= [tex]Future \ value\times PV \ factor(9 \ percent, 8 \ years)[/tex]

= [tex]30000\times (\frac{1}{1.09} )^8[/tex]

= [tex]30000\times 0.5018[/tex]

= [tex]15,054[/tex] ($)

If discounting rate is 11%, the present value will be:

= [tex]Future \ value\times PV \ factor(11 \ percent, 8 \ years)[/tex]

= [tex]30000\times (\frac{1}{1.11} )^6[/tex]

= [tex]30000\times 0.433[/tex]

= [tex]12,990[/tex] ($)

the common sources of secondary data in tourism research are

Answers

Explanation:

Secondary data sources, such as industry statistics, surveys/censuses, and big data indicators, cover a wide array of topics that can be leveraged in tourism research..

pls Mark brainliest if it was helpfull

Identify the simplifying assumptions usually made in net present value analysis.

a. AlI cash flows Other than the initial investment occur at the end of periods.
b. All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate.
c. All cash flows generated by the investment project are immediately reinvested at a rate Of return equal to the discount rate,
d. All cash flows occur at the beginning of the periods,
e. The time value of money is ignored when evaluating investment proposals under the net present value analysis.

Answers

Answer:

a

c

Explanation:

net present value analysis is a capital budgeting method

It is used to analyse the profitability of an investment

On November 1st, Neiman Marcus at the Florida Mall signed a $100,000, 2%, eight-month note payable with all of the principal and interest due at maturity eight months later on July 1. Neiman Marcus' Store at Florida Mall should report interest payable at (year-end) December 31, in the amount of:

Answers

Neumann Marcus should report interest payable at year-end in the amount of $12,750

You are analyzing ABC Company, a computer manufacturer. You notice that inventory turnover this year is significantly lower than in prior years. You also notice that accounts receivable turnover is significantly lower this year when compared to previous years. Provide three explanations that would be consistent with your observation for inventory turnover and include an explanation of whether these would be of concern to you, as well as what the effect might be on the next period's financial results. In addition, provide three explanations that would be consistent with your observation of the accounts receivable turnover, and explain whether these would be of concern to you.

Answers

Answer:

ABC Company

1. Observation: Current year's inventory turnover is significantly lower than those of previous years.

Explanations:

1. Lower inventory turnover implies weaker sales for the current period than those of previous years.

2. Lower inventory turnover results from excessive inventory, which increases storage costs and interest expenses.

3. The ratio may also indicate that the demand for the product is declining rapidly.  Many reasons can be adduced for this situation.  Little marketing efforts, bad product, and lack of product competitiveness.

a) The formula for computing the inventory turnover equals Cost of goods sold/Average Inventory.  The ratio shows the number of times goods are sold in a period.  When goods are sold more frequently, sales activities increase, including revenue and profit.

2. Observation: Also current year's accounts receivable turnover is significantly lower than in previous years.

Explanations:

1. Billing inefficiency can contribute to lower accounts receivable turnover.

2. Poor credit policy may give rise to inefficient collection process, excessive bad debts, long credit days, bad customers, and lack of incentives to customers to settle their invoices.

3. Lastly, lower accounts receivable turnover may point to declining demand of the product by customers.

b) The formula for calculating the accounts receivable turnover is Net Credit Sales divided by Average receivables.  The ratio determines the effectiveness of the company's credit policy.

 

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