All categories

3 years ago

If consumer income increases by $100 million in the united states and the mpc is .6, by how much will consumption increase?

1 answer:

3 0

The marginal propensity to consume (MPC) is a measure of the proportion of extra income that will be spent on consumption. If an individual receives an extra $100 and spends $60 on consumption then the personâ€™s MPC is 0.60. If consumer income in the United States increases by $100 million and the MPC is 0.60 consumption in the US will increase by $60 million.

You might be interested in

Which YuGiOh! number xyz monster do you think is the most powerful?

Alex_Xolod [135]

Answer:

i wanna say Utopia (number 39 lol)

Explanation:

Just look at him

8 0

3 years ago

Read 2 more answers

What does the sarbanes-oxley act of 2002 "require the ceo and cfo to do"?

Dafna11 [192]

The Sarbanes-Oxley Act of 2002 requires the CEO (Chief Executive Officer) and the CFO (Chief Financial Officer) to personally certify the accuracy of the financial statement that the company has filed with the Securities and Exchange Commission as members of senior management.

4 0

2 years ago

1. According to Wallach, what is short-termism, and why is it a problem?

Aleks04 [339]

I inferred you are to the 2017 TEDx talk "Short-termism is killing us: it's time for Long path" by Ari Wallach.

Explanation:

According to Wallach, he refers to short-termism as focusing on short-term results at the expense of long-term interests.

In his words, short-termism is a problem because;

"it prevents the CEO from buying really expensive safety equipment"
"prevents teachers from spending quality one-on-one time with their students".

So in summary what Wallach is saying is that short-termism prevents futuristic thinking.

6 0

2 years ago

The manager of a computer software company wishes to study the number of hours senior executives by type of industry spend at th

miskamm [114]

Answer:

Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

Explanation:

The given data is

Banking Retail Insurance

12 8 10

10 8 8

10 6 6

12 8 8

10 10 10

The results of excel are:

Anova: Single Factor

SUMMARY

Groups Count Sum Average Variance

Column 1 5 54 10.8 1.2

Column 2 5 40 8 2

Column 3 5 42 8.4 2.8

1) Let the null and alternate hypotheses be

H0: u1=u2=u3 i.e all the three means are equal and

Ha: Not all three means are equal

2) The significance level is set at ∝ =0.05

3)The test statistic to use is

F= sb²/ sw²

which has F distribution with v1= k-1 →3-1=2 and v2= n-k →15-3=12 degrees of freedom

After calculations the following table is obtained.

ANOVA

Source SS df MS F P-value F crit

of Variation

B/w Groups 22.93 2 11.467 5.733 0.01788 3.885

Within Groups 24 12 2

Total 46.93 14

4) The critical region is F ≥ F(0.05, 2,12) = 3.885

5) Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

4 0

2 years ago

You have been recently hired as an assistant controller for XYZ Industries, a large, publically held manufacturing company. Your

soldi70 [24.7K]

Answer:

XYZ

a. The Effect on Income Before Taxes of the Change of Ageing Analysis:

The Income before Taxes would be $45,000 ($180,000 - $20,000) - ($135,000 - 20,000) more than the income that should have been reported. Assuming the Income Taxes were to be based on the increased income figure, XYZ would have an increased tax liability by say $18,000 (45,000 x 40%). This reduces the Retained Earnings (or Stockholders Equity) by $18,000. The company would in actual fact, be reporting a net income of $27,000 more than it should have reported. This is very deceptive for all those who would be using the reported financial statement in making their decisions. Unfortunately, we would have showed the affected customer that we are dubious in our business practise, further jeopardizing the chance of full recovery of the debt. This is apart from taking into consideration the type of customer that would be ready to accept a revised invoice that was formerly past due.

b. The ethical dilemma is doing the right thing according to Rights Theory. We cannot say we have adhered to a set of rules (the U.S GAAP or the IFRS) when in fact we are violating an important rule of fair presentation of the elements of the financial statement.

I would try to convince the controller to rescind his suggestion and follow the rules. We understand that making allowance for uncollectibles is an estimate based on judgement. However, since we have established the basis and even stated it in the notes to the financial statements, I think that we should follow through.

Explanation:

The year's Uncollectible Expense should be $160,000 ($180,000 - $20,000). If the allowance for the year were to be adjusted from $180,000 to $135,000, it means that the Uncollectible Expense would then be $115,000 ($135,000 - $20,000). We will be under-reporting the Uncollectible Expense by a difference of $45,000 ($160,000 - $115,000), thereby boosting the net income before tax by $45,000.

4 0

2 years ago