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Paul [167]
2 years ago
7

Suppose an initial increase in government expenditure increases output by $50,000. if the size of the multiplier was 1.0, the si

ze of the initial increase in government expenditure was _____
Business
1 answer:
Tamiku [17]2 years ago
7 0

Suppose an initial increase in government expenditure increases output by $50,000. if the size of the multiplier was 1.0, the size of the initial increase in government expenditure was $50000.

<h3>How to solve for the change in multiplier</h3>

We can solve for the change in multiplier by using this formula which is Change in output / multiplier

The change in output is 50000 while the change in multiplier is 1

This would give us 50000 / 1 = 50000

<h3>What is the government multiplier?</h3>

This is the terminology that is used in economics to refer to the fact that an additional spending by the government of an economy would cause the income of the household to rise.

Read more on government multiplier here: brainly.com/question/15883095

#SPJ4

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Answer:

None of the above is contrary to the predictions of the model.

Explanation:

The budget deficit is when the government spends more than the revenue it makes. Based on the information given, the trade deficit of the United States will grow.

Furthermore, the real exchange rate of the dollar will appreciate and the net capital outflow of the United States will fall as imports will be more than goods exported.

Therefore, the correct option is "None of the above is contrary to the predictions of the model".

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This stand as an advantage for bonds where tax is only deductible after meeting the total interest expenses.

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4 years ago
1. Classify the following cash flows as either operating (O), investing (I), or financing (F) activities. a) _____ Sold long-ter
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Answer:

  • a) _F_ Sold long-term investments for cash.
  • b) _(O)_ Received cash payments from customers.
  • c) _(O)_ Paid cash for wages and salaries.
  • d) _(O)_ Purchased inventories for cash.
  • e) (F)_ Paid cash dividends.
  • f) _(F)_ Issued common stock for cash.
  • g) _(O)_ Received cash interest on a note.
  • h) _(O)_ Paid cash interest on outstanding notes.
  • i) _(I)_ Received cash from sale of land at a loss.
  • j) _(O)_ Paid cash for property taxes on building.

Explanation:

  • a) _F_ Sold long-term investments for cash.
  • e) (F)_ Paid cash dividends.
  • f) _(F)_ Issued common stock for cash.

Financial Decision are those what are needed to planning the new financial needs, it's necessary to decide the various scources in the capital mix of the firm.

  • b) _(O)_ Received cash payments from customers.
  • c) _(O)_ Paid cash for wages and salaries.
  • d) _(O)_ Purchased inventories for cash.
  • g) _(O)_ Received cash interest on a note.
  • h) _(O)_ Paid cash interest on outstanding notes.
  • j) _(O)_ Paid cash for property taxes on building.

The operatives decision are related to the organization of the business, which things buys and how to pay it, the managment of stock, accounts receivables / payables

  • i) _(I)_ Received cash from sale of land at a loss.

The Investment decision are related to how managed the assets of the company, it includes the amount of assets and composition, these decision are a cost and in a limited quantity.

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Multiple Choice Question The changes in the non-cash balance sheet accounts explain the differences between the ______. Multiple
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