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2 years ago

An amendment to the texas constitution requires a balanced budget. This means that _____.

1 answer:

4 0

Any increase in government spending must be offset by an increase in revenue and/or cuts in spending elsewhere in the budget.

<h3>What does Texas Constitution require a balanced budget?</h3>

Texas always keeps its budget balanced because the State Constitution demands it. The Texas state and local sales taxes exceed 10% of the individual transaction price. The primary operating fund for Texas is the General Revenue Dedicated Fund.
A constitutional amendment known as the "balanced budget amendment" would restrict government spending to the amount of revenue it receives. Spending would need to be under control by the federal government.

An amendment to the texas constitution requires a balanced budget. This means that any increase in government spending must be offset by an increase in revenue and/or cuts in spending elsewhere in the budget.

According to a balanced budget, a government should not spend more than its income. Thus projected incomes and expenditures should be equal.

To learn more about balanced constitutional budget amendment, refer to:

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Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct

Rama09 [41]

Answer:

$1,524 underapplied

Explanation:

Predetermined overhead rate = Estimated Manufacturing Overhead ÷ Estimated Activity.

= $560,324 ÷ 22,060

= $25.40

Applied Overheads = Predetermined overhead rate × Actual Activity

= $25.40 × 22,000

= $558,800

<em>Where,</em>

Actual Overheads are $560,324 (given)

<em>Conditions :</em>

If Actual Overheads > Applied Overheads, we say overheads are under-applied and if Actual Overheads < Applied Overheads, we say that overheads are over-applied.

<em>Therefore ,</em>

In our case, Actual Overheads : $560,324 > Applied Overheads : $558,800. Overheads have been under-applied by $1,524 ($560,324 - $558,800).

8 0

3 years ago

10. Crowding out effect Suppose economists observe that an increase in government spending of $13 billion raises the total deman

Lilit [14]

Answer:

Explanation:

Effect of crowding out:

The crowding out phenomena describes the economic phenomena in which an increase in government public spending leads to reduced or perhaps may eliminate of private investment.

Multiplier:

The multiplier represents the ratio of income to investment change.

Given that:

$13 billion increase in government spending will lead to a $52 billion

The rise in demand for goods & service will be the value of multiplier which is

= 52/13

= 4

To determine the multiplier using the formula:

Multiplier = 1 /( 1- MPC)

4 = 1/(1 - MPC)

4 (1 - MPC) = 1

(1- MPC) = 1/4

-MPC = 0.25 - 1

MPC = 0.75

Marginal propensity to consume = 0.75

6 0

3 years ago

Kelly’s Jewelry has the following transactions during the year: total jewelry sales = $640,000; sales discounts = $14,500; sales

pochemuha

Answer:

$559,020

Explanation:

The computation of net sales is shown below:-

Total sales = $640,000

Sales discount = $14,500 + $1,450

= $15,950

Sales return = $39,000 + $4,680

= $43,680

Sales allowance = $19,000 + $2,530

= $21,350

So,

Net sales = Total sales - Sales discount - Sales return - Sales allowance

= $640,000 - $15,950 - $43,680 - $21,350

= $559,020

Therefore for computing the net sales we simply applied the above formula.

8 0

3 years ago

Your client has been given a trust fund valued at $1.07 million. He cannot access the money until he turns 65 years old, which i

slega [8]

Answer:

285 Months

Explanation:

n = 30 years × 12 = 360

percent rate = 5.0 % divided by 12 = 0.417.

Now recalling the statement of time value for money,

We have future value = present value × ( 1 + rate) ∧ n

future value = 1, 070,000 × ( 1 + 0.417 ) ∧ 360

future value = 3.33065667 E 60

At age 65, the value 3.33065667 E 60 will be the present monthly withdrawal at $28,500.

present value of ordinary annuity, = annuity ( 1 - (1 + r) ∧ -n ÷ r

= 3.33065667 E 60 = 28500 (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

= 3.33065667 E 60 ÷ 28500 = (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

1.168651462 E 56 = (1 - ( 1 + 0.417) ∧ - n ÷ 0.417

we now introduce logs to determine the value of n

Solving further, we discovered that n= 285.

Therefore, the number of months it will last one he start to withdraw the money is 285 month

6 0

3 years ago

Wesimann Co. issued 12-year bonds a year ago at a coupon rate of 7.2 percent. The bonds make semiannual payments and have a par

strojnjashka [21]

Answer:

$1,138.92

Explanation:

Current bond price can be calculated present value (PV) of cash flows formula below:

Current price or PV of bond = C{[1 - (1 + i)^-n] ÷ i} + {M × (1 + i)^-n} ...... (1)

Where:

Face value = $1,000

r = coupon rate = 7.2% annually = (7.2% ÷ 2) semiannually = 3.6% semiannually

C = Amount of semiannual interest payment = Face value × r

C = $1,000 × 3.6% = $36

n = number of payment periods remaining = (12 - 1) × 2 = 22

i = YTM = 5.5% annually = (5.5% ÷ 2) semiannually = 2.75% semiannually = 0.0275 semiannually

M = value at maturity = face value = $1,000

Substituting the values into equation (1), we have:

PV of bond = 36{[1 - (1 + 0.0275)^-22] ÷ 0.0275} + {1,000 × (1 + 0.0275)^-22}

PV of bond = $1,138.92.

Therefore, the current bond price is $1,138.92.

4 0

3 years ago