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Nookie1986 [14]
3 years ago
5

If the economy experiences a recession with a current spending gap $1,000 below full-employment output, and the marginal propens

ity to consume is 0.8, how much must government increase spending to restore the economy to full-employment GDP?
Business
1 answer:
gtnhenbr [62]3 years ago
5 0

Answer:

Change in Investment  (Government Spending) = $200

Explanation:

Multiplier = k =∆Y/∆I = 1/(1-MPC)

Needed ∆Y = $1000  ;  MPC = 0.8

1000/ ∆I = 1 / (1-0.8)

1000/∆I  = 1 / 0.2

1000/∆I  = 5

∆I  = 1000/5

∆I = 200

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Company X's current assets increased by $40 million from 2007 to 2008, while the company's current liabilities increased by $25
Virty [35]

Answer:

b. An increase of $15 million

Explanation:

The computation of the cash impact of the change in working capital is shown below:

As we know that

Working capital = Current assets - current liabilities

So, the change in working capital is

= Increase in current assets  - increased in current liabilities

= $40 million - $25 million

= $15 million

Hence, the b option is correct

7 0
3 years ago
Harrison is generally satisfied with his current work, but he is not satisfied with how much he is being paid and the benefits h
Lostsunrise [7]

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Activity pride, job satisfaction, or painting pride is a measure of employees' contentedness with their activity, whether or not they just like the job or character factors or sides of jobs, which includes the nature of labor or supervision. activity pride can be measured in cognitive, affective, and behavioral components.

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8 0
2 years ago
If the dollar contribution margin per unit is increased by 8%, total fixed expenses is decreased by 18%, and all other factors r
satela [25.4K]

Answer:

Increase

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Since the Contribution increased and Fixed Costs have decreased, the resulting effect is an Increase in Net Operating Income. Thus, all other factors remain the same, net operating income will: Increase

8 0
3 years ago
Because there is so much unpredictability in all supply chains, companies must use ___ to make supply chain decisions.
algol13

Because there is so much unpredictability in all supply chains, companies must use Supply Chain Management to make supply chain decisions.

<h3 /><h3>Supply Chain Management: What Is It?</h3>
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  • Because all supply chains are inherently unpredictable, businesses must employ supply chain management to make decisions about their supply chains.
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8 0
2 years ago
Read 2 more answers
Vaughn Manufacturing's allowance for uncollectible accounts was $190000 at the end of 2020 and $178000 at the end of 2019. For t
Colt1911 [192]

Answer: $19000

Explanation:

From the question, we are informed that Vaughn Manufacturing's allowance for uncollectible accounts was $190000 at the end of 2020 and $178000 at the end of 2019 and that for the year ended December 31, 2020, Vaughn reported bad debt expense of $31000 in its income statement.

The amount that Vaughn debited to the appropriate account in 2020 to write off actual bad debts will be:

= $31000 - ($190000 - $178000)

= $31000 - $12000

= $19000

8 0
3 years ago
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