Answer:
a. 0.8
b. 5
c. 0.9 and 10
Explanation:
a. The formula to compute the MPC is shown below:
= (Change in consumption) ÷ (Change in investment income)
= $16 billion ÷ $20 billion
= 0.8
b. The formula to compute the size of the multiplier is shown below:
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.8)
= 1 ÷ 0.2
= 5
c. If the change of the consumption increases, then the MPC would be
= (Change in consumption) ÷ (Change in investment income)
= $18 billion ÷ $20 billion
= 0.9
And, the size of the multiplier would be
= 1 ÷ (1 - 0.9)
= 1 ÷ 0.1
= 10
Answer:
$346,800
Explanation:
Calculation for the amount that should have reported in its 2017 income statement as the current provision for income taxes
Using this formula
Amount reported as current provision for income taxes =(Taxable income*Effective income tax rate)
Let plug in the formula
Amount reported as current provision for income taxes) =($1,020,000 × 34%)
Amount reported as current provision for income taxes) = $346,800
Therefore the amount that should have reported in its 2017 income statement as the current provision for income taxes will be $346,800
Answer:
Contracts that generally require writing
Explanation:
Answer:
a. a flood that destroys a great deal of the corn crop?
The flood decreases the supply of corn and shifts the supply curve to the left which increases the price and decreases quantity in the market.
b. a rise in the price of wheat (a substitute for corn)?
Substitute goods are purchased in substitution as a rise in the price of one increases the demand for other and vice verse.
The rise in price of wheat increases the demand for the corn which shifts the demand curve to the right and increases both price and quantity.
c. a change in consumer tastes away from corn dogs toward hot dogs?
The change in tastes decreases demand which shifts demand to the left and decreases price and quantity both.
d. an increase in the number of demanders in the corn market?
The increase in buyer increases demand and both price and quantity increase as demand curve shifts to the right.
Explanation:
Answer:
The net present value (NPV) of this investment is C) $10,048
Explanation:
Net present value (NPV) is the value of the future cash flows over the entire life of an investment discounted to the present.
The firm invests $95,000 today that will yield $109,250 in one year. The interest rates of the investment are 4%. The net present value (NPV) of this investment:
NPV = $109,250/(1+4%) - $95,000 = $10,048
