Answer:
The answer is: decrease taxes by $100 billion.
Explanation:
If the real GD is $200 billion, which represents only 40% of full employment GDP, then the government should try to increase consumer spending either by decreasing taxes or increasing government spending, or a combination of both.
In this case, I chose the tax decrease since government have budget limitations and they can only decrease taxes by so much before hitting a deficit. Additionally, when you have a large tax reduction, usually government spending either stays the same or decreases.
If the government decreases taxes by $100 billion, the marginal propensity to consume shall result in a $75 billion increase in consumption. According to the Keynesian Multiplier theory, that $75 billion should generate additional production, creating a virtuous cycle that should increase the real GDP in a larger proportion.
Answer: C. 1,2,3
Explanation:
Under MSRB rules, any claim, dispute, or controversy shall be submitted to arbitration at the instance of a:
• broker-dealer against another broker-dealer.
• customer against a broker-dealer.
• broker-dealer against a customer who has previously signed an arbitration agreement.
Therefore, based on the above scenario, the correct option is C.
Answer:
Future Value= $53,635.17
Explanation:
Giving the following information:
Since your birth, your grandparents have been depositing $ 100 into a savings account every month. The account pays 9% interest annually.
First, we need to calculate the monthly interest rate:
Real interest rate= 0.09/12= 0.0075
Now, using the following formula, we can calculate the future value:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit= 100
n= 18*12= 216
i= 0.0075
FV= {100*[(1.0075^216)-1]}/0.0075
FV= $53,635.17
To estimate the price of something.
Answer:
2019 -$8,000,000
2020-$8,000,000
Explanation:
Total compensation for three years=number of stock options*fair value
number of stock options is 12 million
fair value of option is $2
total compensation for three years=12,000,000*$2=$24,000,000
Compensation per year=$24,000,000/3=$8,000,000
The $8 million would be recognized in each of the three years i.e years 2018,2019 and 2020
In each of the three years,compensation expense would be debited with $8 million while paid in capital stock options is credited with $8 millon.
At the end of the third year ,paid in capital stock options would have increased to $24 million
