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Sauron [17]
3 years ago
8

At p1y1, if taxes decrease then consumer spending will decrease and ad will shift right to long-run equilibrium. decrease and ad

will shift left to long-run equilibrium. increase and ad will shift right to long-run equilibrium. increase and ad will shift left to long-run equilibrium. cannot be determine with information given.
Business
1 answer:
Gemiola [76]3 years ago
3 0

Answer: Increase and ad will shift right to long-run equilibrium.

Explanation: A decrease in Taxes lead to an increase in the disposable income of the consumers. This results in higher consumer spending at the given income levels. As a result the AD curve shifts to the right towards the long run equilibrium level.

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Develop a realistic example in which you expect positive covariance​
AURORKA [14]

Answer:

Composure and time management

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Franklin Electric is presently generating earnings available to common shareholders of​ $7.25 per share. The​ firm's income tax
Sphinxa [80]

Answer:

$1.45

Explanation:

First of all we need to know what is earnings available to common shareholders (EACS).

EACS is the part of earnings which is available to common shareholders after deducting preference dividend from net income after taxes.

We can understand the as follows

Net Profit after taxes $ xxxx

Less: Preference dividend (xxxx)

Earnings available to.common shareholders xxxx

From this amount is we divide number of common stocks / shares, we will get Earnings Per Share (EPS)

EPS = Earnings available to equity shareholders / number of common stock shares

Dividend Payout Ration to common stock (given) = 20%

It means the comapny is paying 20% of EPS to common stock holders and 80% of EPS is tthe retained earnings of the company

Hence dividend to common stockholder = Earnings available.to common shareholders × dividend payout ratio

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Nikolay [14]
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Use your knowledge of balance sheets, what are the total liabilities and retained earnings in the text below, respectively? ASSE
Vera_Pavlovna [14]

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B) 280,000; 200,000

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Assets = Liabilities + Shareholder Equity

Assets:

Cash                              $50,000

Accounts receivable    $80,000

Inventory                     $100,000

Gross P&E                   $730,000

<u>depreciation               ($130,000)</u>

total                          = $830,000

Liabilities:

Accounts payable         $12,000

Notes payable              $50,000

<u>Long-term debt           $218,000 </u>

total                          = $280,000

Equity = $830,000 - $280,000 = $550,000

Common stock            $100,000

Add. paid-in capital    $250,000

Retained earnings = $550,000 - $100,000 (common stock) - $250,000 (APIC) = $200,000

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