Answer:
(B) $20 billion
Explanation:
Given a certain level of MPC, an increase in government spending (G) by a certain amount translates to an increase in aggregate demand (AD) through the relationship below.
where Δ means <em>change.</em>
<em />
Therefore, given ΔAD of $50 billion, and MPC of 0.6,
= 
= 
= ΔG = 50 * 0.4 = 20
Therefore, increase in government purchases = $20 billion.
Yes, effective leadership involves chosing the right style for the situation. Every leadership situation has different variables and followers. Think of a coach that fails with one team and wins with another.
Answer:
Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.
Explanation:
Old Net profit margin = Net income/ Revenue
= $10,600/$205,000
= 5.170731707%
Old ROE = Net profit margin*Asset turnover*Equity multiplier
= 0.0517*1.33*1.75
= 12.03487805%
New net income = $10,600 + $10,250
= $20,850
New net profit margin = $20,850/$205,000
= 10.17073171%
New ROE = 0.1017*1.33*1.75
= 23.67237805%
Change in ROE = New ROE – Old ROE
= 23.67237805% - 12.03487805%
= 11.6375%
Therefore, Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.
Answer: Any of these answer choice is correct.
Explanation:
You didn't put the options to the question. The options are:
• There is no remaining obligation to transactions goods.
• The contract has been terminated.
• Goods have been delivered.
• Any of these answer choice is correct.
When consideration has been received before a contract is identified and the consideration is nonrefundable, then the revenue may be recognized when:
• There is no remaining obligation to transactions goods.
• The contract has been terminated.
• Goods have been delivered
Therefore, the correct option is any of the answer choice is correct.
