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ludmilkaskok [199]
1 year ago
9

according to one-period model of macroeconomics which of the following statements is correct about an economy engaging in a war

financed by debt? group of answer choices output is increased so is consumption so that the spending multiplier is larger than one. output is increased but consumption is cut back so that the spending multiplier is positive but less than one. output stays the same and consumption is cut back so that the spending multiplier is zero. output is increased but consumption stays the same so that the spending multiplier is equal to one.
Business
1 answer:
KIM [24]1 year ago
4 0

Option (b) for a response. In order to keep the expenditure multiplier from exceeding 1, output must increase while consumption must decrease.

<h3>Spending multiplier: What does it tell you?</h3>

An economic indicator of the impact that changes in government spending and investment have on a nation's Gross Domestic Product is the expenditure multiplier, often known as the fiscal multiplier.

<h3>When the multiplier is negative, what does that mean?</h3>

The negative multiplier effect happens when a spending leak or initial withdrawal from the circular flow has further impacts and a larger final decline in real GDP.

<h3>Why does multiplier exceed 1?</h3>

The rise in the national product indicates a rise in national income. Consumption demand rises as a result, and businesses produce to satisfy it. As a result, the increase in investment is greater than the increase in national income and product. There is a multiplier effect that exceeds one.

Learn more about expenditure multiplier: brainly.com/question/28140364

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upton industries has revenues of $42,629, interest expense of $1,230, depreciation of $2,609, cost of goods sold of $23,704, div
igor_vitrenko [27]

Option a) $5075.88 is the addition to the retained earnings

Current profits less any dividends or other payouts to shareholders are a company's retained earnings. Every time an accounting entry is made that has an effect on a revenue or expense account, this sum is modified. A sizable retained profits balance suggests that the corporation is in a secure financial position.

Computing after-tax profit:

(Revenues - Interest cost - Depreciation - Cost of goods sold - Administrative costs) x ( 1 - tax)

= ($42629 - $1,230 - $2,609 - $23,704 - $7,040) x ( 1 - 22%)

= $6,275.88

Retained earnings addition:

= After-tax net profit - Dividends paid

= 6,275.88 - 1,200

= $5,075.88

Hence, option a) is the correct answer

Learn more about retained earnings:

brainly.com/question/14529006

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3 0
1 year ago
Match each of the options above to the items below.
Talja [164]

Answer:

a. Revenues, expenses. and dividends - Temporary accounts

b. List of permanent accounts and their balances - Post-closing trial balance

c. Transfer of temporary balances to retained earnings - Closing entries

d. List of permanent and temporary accounts and their balances - Adjusted trial balance

e. Assets, liabilities, and stockholders' equity - Permanent accounts

5 0
2 years ago
A bag contains 9 red marbles, 5 white marbles, and 6 blue marbles. You draw 4 marbles out at random, without replacement. Find t
IRINA_888 [86]

a) 0.0260

b) 0.0681

Explanation:

a)

The bag contains:

r = 9 (number of red marbles)

w = 5 (number of white marbles)

b = 6 (number of blue marbles)

So, the total number of marbles in the bag at the beginning is:

n=9+5+6=20

At the 1st attempt, the probability of choosing a red marble is:

p(r)=\frac{r}{n}=\frac{9}{20} (1)

At the 2nd attempt, the 1st red marble is not placed back, so now the number of marbles is (n-1), while the number of red marbles left is (r-1). So the probability of choosing another red marble at the 2nd attempt is

p(r)=\frac{r-1}{n-1}=\frac{8}{19} (2)

With a similar argument, the probabilities of selecting a red marble in the 3rd and 4th attempt are

p(r)=\frac{7}{18} (3)

p(r)=\frac{6}{17} (4)

Therefore, the probability of drawing 4 red marbles in the first 4 attempts without replacing is:

p(rrrr)=\frac{9}{20}\frac{8}{19}\frac{7}{18}\frac{6}{17}=\frac{3024}{116280}=0.0260

b)

At the 1st draw, the probability that the marble is not red is:

p(r^c)=1-p(r)=1-\frac{9}{20}=\frac{11}{20}

At the 2nd draw, there are 9 red marbles left and 19 total marble left. So, the probability of NOT drawing a red marble is:

p(r^c)=1-\frac{9}{19}=\frac{10}{19}

At the 3rd draw, there are 9 red marbles left and 18 total marbles left. So, the probability of NOT drawing a red marble is:

p(r^c)=1-\frac{9}{18}=\frac{9}{18}

Finally, with a similar argument the probability of NOT drawing a red marble at the 4th and last attempt is:

p(r^c)=\frac{8}{17}

So, the total probability of drawing 4 non-red marbles in the first 4 attempts is:

p(r^cr^cr^cr^c)=\frac{11}{20}\frac{10}{19}\frac{9}{18}\frac{8}{17}=\frac{7920}{116,280}=0.0681

6 0
3 years ago
Which job would most likely require a college degree?
IrinaK [193]

"Financial Manager" would most likely require a college degree.

Financial managers are in charge of the money related well-being of an association. A four year degree in finance (bachelor), bookkeeping, financial aspects, or business organization is usually the least qualification required for Financial managers. However, numerous businesses currently look for individuals with a master degree, ideally in business studies, finance etc.

3 0
3 years ago
Read 2 more answers
HW2: ABC Co. acquired the $100,000, 6% bonds on 2001/12/31. Market price of the bonds: $102,723 (including brokerage fee of $153
weqwewe [10]

The preparation of the related journal entries for each period for ABC Co. is as follows:

<h3>Journal Entries:</h3>

2001/12/31 Debit Bonds Receivable $100,000

Debit Bonds Premium $2,723

Credit Cash $102,723

2002/12/31 Debit Cash $6,000

Credit Interest Revenue $5,136

Credit Amortization of Bonds Premium $864

2003/12/31 Debit Cash $6,000

Credit Interest Revenue $5,093

Credit Amortization of Bonds Premium $907

2004/9/30 Debit Cash $105,500

Credit Interest Revenue $3,786

Credit Amortization of Bonds Premium $952

Credit Bonds Receivable $100,000

Credit Realized Gain $762

<h3>Data and Calculations:</h3>

Periods          Cash     Interest Revenue      Premium        Carrying Value

                   Receipt                                  Amortization

2001/12/31                                                                                    102,723

2002/12/31     6,000             5,136                   864                    101,859

2003/12/31     6,000            5,093                   907                   100,952

2004/12/31     6,000            5,048                   952                   100,000

The fair market value of the bonds:

Periods Fair Market Value

2002/12/31 104,200

2003/12/31 103,000

2004/9/30 105,500

<h3>Journal Entries Analysis:</h3>

2001/12/31 Bonds Receivable $100,000 Bonds Premium $2,723 Cash $102,723

2002/12/31 Cash $6,000 Interest Revenue $5,136 Amortization of Bonds Premium $864

2003/12/31 Cash $6,000 Interest Revenue $5,093 Amortization of Bonds Premium $907

2004/9/30  Cash $105,500 Interest Revenue $3,786 Amortization of Bonds Premium $952 Bonds Receivable $100,000 Realized Gain $762

Learn more about recording bond transactions at brainly.com/question/16048929

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5 0
2 years ago
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