Answer:
a. Amount the government would have to increase spending according Economist A = $8 billion
b. Amount the government would have to increase spending according Economist B = $16 billion
Explanation:
a. Economist A
Since government spending multiplier is believed to be 8, this implies that the government has to spend an amount that when it is multiplied by 8 it will be equal to recessionary gap of $64 billion in order to close the output gap. This amount can be calculated as follows:
Amount the government would have to increase spending according Economist A = Amount of recessionary gap / Government spending multiplier according to Economist A = $64 billion / 8 = $8 billion
b. Economist B
Since government spending multiplier is believed to be 4, this implies that the government has to spend an amount that when it is multiplied by 4 it will be equal to recessionary gap of $64 billion in order to close the output gap. This amount can be calculated as follows:
Amount the government would have to increase spending according Economist B = Amount of recessionary gap / Government spending multiplier according to Economist B = $64 billion / 4 = $16 billion
Answer:
They last for a certain period of time
Explanation:
Typically Certificates of Deposit are offered if the set amount is deposited and kept through the stated amount of time. (The length of the CD can be anywhere from 18 months to 3 years [most popular]) When the money is removed short of the stated time period a penalty is taken from the value of the CD.
Answer:
useful
Explanation:
i got it from USA test prep
The company has declared a 100% stock dividend on its common stock will not be considered while calculating the earnings per common shares should be.
Earnings per share = Net Income / Number of equity shares.
where Net Income = $1,520,000
Common equity shares = 300,000
Earnings per share = $1,520,000 / 300,000
Earnings per share = $5.07
Therefore, earnings per common share for year 2015 for Rice Corporation is $5.07