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1 year ago

What were the most important factors that led to the midwest becoming known as the rust belt?

1 answer:

5 0

The Rust Belt became an industrial hub due to its proximity to the Great Lakes, canals, and rivers, which allowed companies to access raw materials and ship out finished products. These were the most important factors.

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An economy is operating with output $400 billion above its natural level, and fiscal policymakers want to close this expansionar

Vlad [161]

Answer:

$\Delta G= 400 billion \frac{1}{5}= 80 billions$

To close the expansionary gap, the government would need to spending by 80 billion

Explanation:

Assuming this question: "To close the expansionary gap, the government would need to spending by ? billion"

Previous concepts

The government expenditure multiplier "denoted by K, the impact of a change in income following a change in government spending".

The marginal propensity to consume denoted by MPC "is a metric that quantifies induced consumption, the concept that the increase in personal consumer spending occurs with an increase in disposable income"

Solution to the problem

Fo this problem we need to find the Government multiplier (K) with the following formula:

$K=\frac{1}{1-MPC}$

Wehre MPC represent the marginal propensity to consume. And if we replace we got this:

$K=\frac{1}{1-\frac{4}{5}}=5$

And now we can find the government decrease with the following formula:

$\Delta G= \Delta Y \frac{1}{K}$

And for this case the output is $\Delta Y = 400 billion$ , and we have everything in order to replace:

$\Delta G= 400 billion \frac{1}{5}= 80 billions$

So thn the answer woud be: "To close the expansionary gap, the government would need to spending by 80 billion"

3 0

3 years ago

At December 31, Hardball Company has ending inventory with a historical cost of $316,000 and the company uses the perpetual inve

zlopas [31]

Answer: c. Cost of Goods Sold $9,500 $9,500 Inventory.

Explanation:

The journal entries that is required on December 31 to adjust the ending balance of inventory if the direct method is used to record the lower of cost or market write down will be gotten as the difference between the historical cost of the ending inventory and the current replacement cos of inventory. This will be:

= $316000 - $306500

= $9500

Therefore, the journal entry will be:

Debit: Cost of Goods Sold $9,500

Credit: Inventory $9,500.

3 0

3 years ago

The Wood Division of Fir Products, Inc. manufactures rubber moldings and sells them externally for $55. Its variable cost is $25

Andreyy89

Answer:

$25

Explanation:

Since there is an available capacity of 5,000 units so in this case, the minimum transfer price which should be accepted is equal to the variable cost per unit i.e $25 and the same is to be considered as it is enough to cover its variable production cost

Therefore, all the other information which is given in the question is not relevant. Hence, ignored it

6 0

2 years ago

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan'

Leviafan [203]

Answer:

14.06%

Explanation:

The computation of the cost of common equity using the DCF method is shown below:

Cost of Common Equity = [Ending year dividend ÷ Price per share] + growth rate

= [$2.31 ÷ $25.50] + 0.05

= 14.06%

We simply applied the above formula by considering the ending year dividend, price and the growth rate so that the correct percentage could come

5 0

2 years ago

Stores are overflowing with the latest vampire novel at $10. Store managers are frustrated with the lack of sales. The equilibri

Ket [755]

Though I have no experience in business, I would say it is True.

3 0

3 years ago