Answer:
(a) 0.7
(b) 3.33
(c) -$210
(d) -$147
(e) -$1 trillion
Explanation:
(a) Marginal propensity to consume (MPC) = 0.7
(b) Multiplier of this economy:
= 3.33
(c) Decrease government purchases by $300 billion,
Initial change in consumption = Change in government purchases × MPC
= $300 × 0.7
= -$210 billion
(d) This decreases income yet again, causing a second change in consumption equal to:
= Initial change in consumption × MPC
= -$210 × 0.7
= -$147 billion
(e) The total change in demand resulting from the initial change in government spending is:
= Change in government purchases × Multiplier
= $300 × 3.33
= -$1 trillion
Answer:
$729
Explanation:
The computation of the one call option is shown below:
= Call option price × number of shares
= $7.29 × 100 shares
= $729
Simply we multiplied with the call option price with the number of shares so that the one call option could be calculated as we have to find out the one call option price
All other information which is given is not relevant. Hence, ignored it
Answer:
Baker Industries
The Cost of goods sold for the period is:
= $330,000
Explanation:
a) Data and Calculations:
Cost of goods manufactured $ 320,000
Beginning finished goods inventory 45,000
Ending finished goods inventory 35,000
Cost of goods sold:
Beginning finished goods inventory $45,000
Cost of goods manufactured 320,000
Ending finished goods inventory (35,000)
Cost of goods sold = $330,000
Answer:
b. $ 240,000
Explanation:
Calculation for what Kat should recognize as compensation expenses
Using this formula
Compensation expenses= (Purchase shares ×Value of options)/ Years of Service
Let plug in the formula
Compensation expenses=(60,000 shares
x $8 per option) / 2 years of service
Compensation expenses=480,00/2 years of service
Compensation expenses= = 240,000
Therefore what Kat should recognize as compensation expenses is 240,000
C. Monitoring use of workplace resources for personal gain
