All categories

4 years ago

If Congress decides to increase defense spending but does not increase taxes to cover the deficit spending, we can expect that

Business

1 answer:

mote1985 [20]4 years ago

3 0

Answer:

e. consumer spending will increase.

Explanation:

If Congress decides to increase defense spending but does not increase taxes to cover the deficit spending, we can expect that consumer spending will increase because, unless in the event that the increase will be funded by borrowing from the private sector which will cause a crowding out effect, The increased spending by congress (government) will create a multiplier effect by causing job creation for the unemployed, which will imply that people will have more income to spend leading to rise in aggregate demand or consumer spending.

Furthermore, the fact that there will be no increase in taxes implies that consumers will have a higher disposable income for consumption purposes leading to a rise in consumer spending

You might be interested in

Present your business idea. Then explain the problem, the pain, the need this idea is addressing. Your idea should fix a problem

Lerok [7]

Answer:

Secure it

Explanation:

3 0

3 years ago

Suppose that, in a competitive market without government regulations, the equilibrium price of donuts is $1.50 each. Complete th

statuscvo [17]

Answer:

Option A is a price floor, option B is binding and option C is price ceiling.

Explanation:

It is stated that the equilibrium price of a donut is $1.50.

If the government institutes a legal minimum price of $1.80 for a donut, that would be an example of price floor because the price cannot be lower than that. $1.80 is higher than $1.50 so it serves a purpose.

Option B is binding since any donut shop that wants to pay better wages is prohibited from hiring more workers.

The government prohibiting donut shops from selling a donut for more than $1.10 is an example of floor ceiling because the price can not go higher than $1.10.

I hope this answer helps.

4 0

3 years ago

You contacted your stock broker this morning and placed an order to sell 300 shares of a stock that trades on the nyse. this sal

Zarrin [17]

Answer:

Secondary Market

Explanation:

Secondary market are referred to as stock market. All major stock exchanges are secondary market like New York Stock Exchange. In secondary market you can buy previously issued securities. Like in this question, these 300 shares will be sold to another investor in NYSE which is secondary market.

7 0

3 years ago

Sullivan Company uses the periodic inventory system. The following balances were drawn from the accounts of Sullivan Company pri

Arada [10]

Answer:

$11,800

Explanation:

Calculation to determine the gross margin that will be shown on the income statement bartley

First step is to calculate the Cost of goods sold

Cost of goods sold = 5,100 + 9,900 + 1,350 - 1,150 - 5,500

Cost of goods sold = $9,700

Now let determine the Gross margin

Using this formula

Gross margin=Sales-COGS

Let plug in the formula

Gross margin = $21,500 - $9,700

Gross margin = $11,800

Therefore the gross margin that will be shown on the income statement bartley is $11,800

5 0

4 years ago

jillian currently has $500 in an account with an annual rate of return of 4.3%. she has set a goal to travel and would like to h

Alchen [17]

Jillian currently has $500 in an account with an annual rate of return of 4.3%.She needs to save $46.07 each month for the trip to Hawaii

The $500 in her account will grow to =500*(1+0.043)^4 = 591.71

So she has to save 3000-591.71 = 2,408.29

The 2,408.29 becomes the FV and we have to calculate the PMT with a monthly rate of 0.043/12 and nper = 4*12 =48. We use the PMT function of excel

So she needs to save each month =PMT(rate,nper,pv,fv) in excel = PMT(0.043/12,48,0,2408.29) = 46.07

So she needs to save $46.07 each month for the trip to Hawaii

Rate of return is a profit on funding. It accommodates any trade in value of the investment, and/or cash flows which the investor gets from that funding, which include interest payments, coupons, coins dividends, inventory dividends or the payoff from a spinoff or based product.

Learn more about rate of return here:brainly.com/question/24301559
#SPJ4

5 0

2 years ago