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1 year ago

a. Suppose the marginal propensity to consume (MPC) for a nation is 0.67. What is the tax multiplier for this nation

1 answer:

7 0

Assuming the marginal propensity to consume (MPC) for a nation is 0.67. The tax multiplier for this nation is: 2.03.

<h3>Tax multiplier</h3>

Using this formula

Tax multiplier=-MPC/1-MPC

Where:

Marginal propensity to consume (MPC)=0.67

Let plug in the formula

Tax multiplier=0.67/1-0.67

Tax multiplier=0.67/0.33

Tax muitiplier=2.03

Inconclusion the tax multiplier for this nation is: 2.03.

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The Coalition of Independent Music Stores, a group of 44 prominent independent record stores in 25 states, operates as a way for

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Answer:

E. a contractual system.

Explanation:

Based on the information provided within the question it can be said that this form of ownership is known as a contractual system. This system is various levels of distribution and production unite in order to accomplish the goal of increasing sales for the company as a whole, which they otherwise would not be able to do separately. Which is what the stores in this scenario are doing by using cooperative advertising to increase their sales.

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2 years ago

Ace Electric's income statement reports Sales of $100,000; Cost of goods sold of $46,000, Operating expenses of $34,000, Interes

FromTheMoon [43]

The correct answer is b) $100,000.

Vertical analysis is a type of financial statement analysis that shows each item on a statement as a percentage of a base figure. The vertical analysis involves presenting each line item on an income statement as a percentage of net sales and each line item on the balance sheet as a percentage of total assets.

To perform a vertical analysis of this income statement, you would divide each of these income statement line items by $100,000.

Sales = $100,000 / $100,000 = 100%

Cost of goods sold = $46,000 / $100,000 = 46%

Operating expenses = $34,000 / $100,000 = 34%

Interest expense = $15,000 / $100,000 = 15%

Income tax expense = $2,000 / $100,000 = 2%

Net income = $3,000 / $100,000 = 3%

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1 year ago

Suppose the demand function (D) for golf clubs is: QP, where P is the price paid by consumers in dollars per club and Q is th

Pachacha [2.7K]

Answer:

(a)

The equilibrium price is $75 per club

The equilibrium quantity is 75000 clubs

(b)

A charge a price of $50 per club. This would result in a surplus of 25000 clubs

Explanation:

Given

$Q = 150 - 1.00P$ --- The demand function

$Q = 1.00P$ --- The supply function

Solving (a): The equilibrium price and quantity

To do this, we equate both functions

This gives:

$1.00P = 150 - 1.00P$

Collect like terms

$1.00P+1.00P = 150$

$2.00P = 150$

Make P the subject

$P =\frac{150}{2.00}$

$P = \$75$ ---The equilibrium price

Substitute 75 for P in $Q = 1.00P$

$Q = 1.00 * 75$

$Q = 75$ ---- The equilibrium quantity

Solving (c): When the price is changed to $50

This means that: $P =50$

The quantity demanded will be:

$Q = 150 - 1.00P$

$Q = 150 - 1.00 * 50$

$Q = 150 - 50$

$Q = 100$

Subtract the equilibrium quantity from $Q = 100$ to get the shortage/surplus

$\triangle Q = 100 - 75$

$\triangle Q = 25$

<em>Since the change is positive, then there is a surplus.</em>

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3 years ago

You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.4 percent indefinitely

aleksandr82 [10.1K]

Answer: $50.83

Explanation:

Based on the information given in the question, the following can be deduced:

r = required return = 10.6% = 0.106

D0 = Dividend = 3.29

g = growth rate = 4.4% = 0.044

The price per share of the company's stock will be:

= D0(1 + g)/(r - g)

= 3.29(1 + 0.044)/(0.106 - 0.044)

= 3.29(1.044)/(0.062)

= 3.15134/0.062

= $50.83

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2 years ago

A firm organized on the basis of retail customers and wholesale customers utilizes the concept of departmentalization by

lilavasa [31]

Answer:

Customer

Explanation:

In customer departmentalization, departments are basically separated from each other based on the types or groups of customers that needs to be handled or dealt with. For instance, customers can be classified under types such as, bulk purchasing or wholesale customers, retail customers, etc.

To handle them in a better way each group of customers needs different tactics and strategies. Therefore, customer deparmentalization serves the purpose of the firm that is organized on the basis of retail customers and wholesame customers.

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3 years ago