Answer: <em>a. Multiplier = 3.33</em>
<em>b. Stimulation = $2000 billion</em>
Explanation:
In this particular case , it's given:
Marginal propensity to consume(MPC) = 0.7
Government spending = $600 billion
Therefore, we can evaluate the multiplier using the following formula:
Multiplier = 3.33
Noe, in order to find the stimulation in the economy we will multiple the new government spending with the multiplier. We will get ;
Stimulation = $2000 billion
Answer:
The answer is: equity will increase by $4,000
Explanation:
Since only one third of the contract has been fulfilled, then one third of the money received ($12,000 x 1/3) should be recognized as revenue. A revenue increase will result in a net earnings increase, which will result in an adjustment of the balance sheet's equity.
The answer is C income and expenses.
<u>Answer:</u>Those assets that can’t be touched or seen but that have value are called intangible assets.
<u>Explanation:</u>
Intangible assets are the assets which do not have a physical existence to touch or see. Some of the examples of intangible assets are Goodwill, intellectual property, copyrights, patents etc. These assets are in contrast to physical assets which can be moved , touched or seen examples are land, machinery, building cash etc.
Intangible assets are also considered as the long term assets. Though these assets do not have physical existence they have a value. They also help to improve the value of other assets.
Answer:
d. 37.80%
Explanation:
Calculation for what is the expected return on RicciCo
Using this formula
Expected return = Risk free rate + Beta *(Market return - Risk free rate)
Let plug in the formula
Expected return = 9 + 3.2*(18-9)
Expected return = 9 + 3.2*9
Expected return= 37.80%
Therefore the expected return on RicciCo will be
37.80%
