If the marginal propensity to consume is 0.8, by how much will GDP increase after government spending increases by $200

Answers

Answer 1

Answer:

Answer:

If disposable income increases by $5 billion and consumer spending ... spending by $100 billion and the marginal propensity to consume is 0.8. ... Suppose investment spending increases by $50 billion, and as a result real GDP increases by $200 billion. ... deliberate changes in taxation and/or government spending.

Explanation:

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Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000. This year it had a population of 2,500 and real GDP of 14,640,000. What was the growth rate of real GDP per person between last year and this year?
Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance Theodore McMahon opened a law office on April 1, 2018. During the first month of operations, the business completed the following transactions: Requirements 1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required. 2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531. 3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal. 4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.
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The National Bank Act of 1864 established the national banking system in the United States. The Act still governs U.S. national banks even though Congress has updated it many times since 1864. True False

Common Stock is 2.5 million shares with a current price of $42 per share; the beta of the stock is 1.34; the standard deviation of the stock is 10.5%. Market: The US Treasury bill is yielding 2.8% and the expected return on the market is 11.2% and the expected return on the market is 11.2%. The corporate tax rate is 38%. What is the firm's cost of equity

Answers

Answer:

the firm's cost of equity is 17.808%

Explanation:

A firm's cost of equity is the return expected by holders of Common Stock.

The Data available allows us to use the Capital Asset Pricing Model (CAPM) to determine the cost of Equity.

Cost of Equity = Risk Free Rate + Company`s Beta × Expected Return on Market Portfolio

= 2.8%+1.34×11.2%

= 17.808%

Answer:

Cost of equity = 14.1%

Explanation:

The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.

Under CAPM, Ke= Rf + β(Rm-Rf)

Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market.

Rf- 2.8% , Rm- 11.2%, β-1.34

Using this model,

Ke= 2.8% + 1.34×(11.2%-2.8%)

= 14.1%

Which of the following assumptions is likely to be met in the real world? Group of answer choices All labor has zero costs of mobility. Demand for labor is identical in every labor market. All labor is homogeneous. Nonpecuniary factors in each job are not the same.

Answers

Answer:

None of the above

Explanation:

NONE of of the following assumptions is likely to be met in the real world.

Assumptions which include

A) All labor has zero costs of mobility. B) Demand for labor is identical in every labor market. C) All labor is homogeneous. D) Non pecuniary factors in each job are not the same are NOT likely to be met in the real word

In December 2016, Learer Company's manager estimated next year's total direct labor cost assuming 50 persons working an average of 2,500 hours each at an average wage rate of $20 per hour. The manager also estimated the following manufacturing overhead costs for 2017 Indirect labor Factory supervision Rent on factory building Factory utilities Factory insurance expired Depreciation-Factory equipment 494, 000 Repairs expense-Factory equipment Factory supplies used Miscellaneous production costs 50,000 Total estimated overhead costs $1,500, 000 $ 333, 200 128,000 154, 000 102,000 82, 000 74,000 82,800 At the end of 2017, records show the company incurred $1,600,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $618,000, Job 202, $577,000; Job 203, $312,000; Job 204, $730,000, and Job 205, $328,000. In addition, Job 206 is in process at the end of 2017 and had been charged $31,000 for direct labor. No jobs were in process at the end of 2016. The company's predetermined overhead rate is based on direct labor cost

Answers

Answer: The answer is ($76,280,000)

Explanation:

POAR = Budgeted Overhead / Budgeted labour cost

Total direct labour cost = hours worked × wage rate per hour

Hours worked = 2,500 hours , wage rate per hour = $20

= 2,500 × 20

= $50,000

Budgeted Overhead = $1,500,000, Budgeted labour cost = $50,000

= 1,500,000 / 50,000

= 30 × actual activity

Actual activity direct labour = 618,000 +577,000 + 310,000 + 730,000 + 328,000 + 31,000 = 2,596,000

Overhead absorbed = 30 × 2,596,000

= 77,880,000

Actual Overhead = 1,600,000

Actual Overhead - Overhead absorbed

= 1,600,000 - 77,880,000

= ($76,280,000)

Since the overhead absorbed is greater than actual overhead, this is known as over absorption.

At December 31, 2017, Sweet Corporation had a projected benefit obligation of $561,600, plan assets of $331,900, and prior service cost of $120,300 in accumulated other comprehensive income. Determine the pension asset/liability at December 31, 2017. (Enter liability using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Pension asset/liability at December 31, 2017

Answers

Answer:

Pension liability at December 31, 2017 is ($229,700)

Explanation:

Projected benefit obligation $561,600

Less: Plan assets $331,900

Pension liability at December 31, 2017 -$229,700

Not all the items in your office supply store are evenly distributed as far as demand is concerned, so you decide to forecast demand to help plan your stock. Past data for legal-sized yellow tablets for the month of August areA)Using a three-week moving average, what would you forecast the next week to be? (Round your answer to the nearest whole number.)
B)Using exponential smoothing with ? = 0.20, if the exponential forecast for week 3 was estimated as the average of the first two weeks [(315 + 415)/2 = 365], what would you forecast week 5 to be? (Round your answer to the nearest whole number.)
Week 1 315
Week 2 415
Week 3 615
Week 4 715

Answers

Answer: A. 582 ; B. 475

Explanation:

A. Three week moving average

three moving average requires us to take the last three weeks forecast in calculating the forecast for following week, to calculate week 5 forecast we will start from week 2 to week 4.

Week 2 = 415

Week 3 = 615

Week 4 = 715

Three week moving average = (WEEK 2 + Week 3 + Week 4)/N

Three week moving average = (415 + 615 + 715)/3

Three week moving average = 1745/3 = 581.6667 = 582

using three week moving average the forecast for week 5 is 582

B.Exponential smoothing

Exponential smoothing forecast for week 3 is 365, to calculate the forecast of week 5 we need to find a forecast for week 4 first using exponential smoothing

S = smoothing Factor = 0.2

D = most recent forecast (week 3) = 615

F = most recent forecast under exponential smoothing = 365

Forecast(week 4) = (D × S) + (F × (1 - S))

Forecast(week 4) = (615 × 0.20) + (365 × (1 - 0.20))

Forecast(week 4) = 123 + 292 = 415

The forecast for week 4 using exponential smoothing is 415

Week 5 forecast calculation

S = smoothing Factor = 0.2

D = most recent forecast (week 4) = 715

F = most recent forecast under exponential smoothing = 415

Forecast(week 5) = (D × S) + (F × (1 - S))

Forecast(week 5) = (715 × 0.20) + (415 - (1 - 0.20))

Forecast(week 5) = 143 + 332= 475

forecast for week 5 is 475

Final answer:

The forecast for the next week using a three-week moving average would be 448 items. Using exponential smoothing with a smoothing constant of 0.20, the forecast for week 5 would be 435 items.

Explanation:

To answer both parts of your question:

A) The three-week moving average is calculated by taking the average of the past 3 weeks, so for week 4, it would be the average of weeks 1, 2, and 3: [(315 + 415 + 615)/3 = 448]. Therefore, the forecast for week 4 using a three-week moving average would be 448 items, rounded to the nearest whole number.

B)Exponential smoothing requires the use of a smoothing constant, in this case, ? = 0.20, and the previous actual and forecasted values. Using the given exponential forecast for week 3 of 365, the forecasted demand for week 5 would be calculated as follows: Forecast = ? * Actual_previous + (1-?) * Forecast_previous = 0.20 * 715 + (1-0.20) * 365 = 435. Therefore, your week 5 forecast would be 435 items, rounded to the nearest whole number.

Learn more about Demand Forecasting here:

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#SPJ3

More needs to be done to capitalise on the power of the peer-to-peer networks that many music downloaders still use. A recent study found that regular downloaders of unlicensed music spent an average of £5.52 a month on legal digital music. This compares to just £1.27 spent by other music fans. The research clearly shows that music fans who breakpiracy laws are highly valuable customers. It also suggests that they are eager to adopt legitimate music services in the future. One researcher pointed out that "There's a myth that all illegal downloaders are mercenaries hell-bent on breaking
the law in pursuit of free music. In reality hardcore fans "are extremely enthusiastic about paid-for services, as long as they are suitably compelling, he said.
People who download unlicensed music tend not buy legal digital music.

A True
B False
C Cannot Say

Answers

The answer to the prompt that "People who download unlicensed music tend not buy legal digital music" is False.

Judging from the passage above, the answer to this prompt is false.

The passage makes it clear that those who regularly downloaded unlicensed music also "spent an average of £5.52 a month on legal digital music."

This shows that this crop of individuals are willing to purchase legal digital music.

Learn more about unlicensed music here:

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Im pretty sure it’s true

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