1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sonbull [250]
3 years ago
11

Two​ countries, A and B​, both are currently in recession. The values of the MPS for A and B are 0.1 and 0.5 respectively. The g

overnments of both countries are planning to boost income through an expansionary policy of a tax cut of​ $1 billion.
Business
1 answer:
aksik [14]3 years ago
3 0

Answer:

Explanation:

The policy of tax cut will be less effective in country B than in country A since the value of the tax multiplier is lower in country B.

The multiplier effect refers to the increase in final income arising from any new injections.

Calculating the Multiplier Effect for a simple economy

k = 1/MPS

A = 1/0.1 =10

B= 1/.5=2

You might be interested in
ou are a producer of cold medicine. Last month, a flood at your factory eliminated 50% of your firm’s production capability. At
Scilla [17]

Answer:

The flood shifts the supply to the left.

The increase in healthcare costs shifts the supply curve to the left.

Explanation:

An increase in the cost of production inputs (increase in health costs) or a decrease in the availability of resources (the flood reduced the firm's production capability), will shift the supply curve to the left.

A leftward shift of the supply curve will lower the quantity supplied and will increase the price of the good at every level of demand.

6 0
3 years ago
GearOne Autos Inc. has shifted its research and development unit from its home country to Germany. This allows the company to be
Nikolay [14]

Answer: (B) Location economies  

Explanation:

 According to the question, the gear-one autos inc. basically acquire the benefits of the location economies. The location economies is effective strategy in the economics used in an organization for determining the location.

The main aim of the location economics is that it producing the identical products by using the consistent strategy. The location economics helps the organization in the latest development.

Therefore, Option (B) is correct.

3 0
3 years ago
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans
Nina [5.8K]

Answer:

interest capitalized during 2018 = $29,000

interest capitalized during 2019 = $14,000

Explanation:

current outstanding liabilities:

$6,000,000, 8% note

$9,000,000, 3% bonds

construction related expenditures:

July 1, 2018 $580,000

September 30, 2018 $870,000

November 30, 2018 $870,000

January 30, 2019 $810,000

interest capitalized for 2018:

July 1, 2018 $580,000 x 6/12 = $290,000

September 30, 2018 $870,000 x 3/12 = $217,500

November 30, 2018 $870,000 x 1/12 = $72,500

total weighted accumulated expenditures = $580,000

weighted interest rate:

$6/$15 x 8% = 3.2%

$9/$15 x 3% = 1.8%

total weighted interest = 5%

interest capitalized during 2018 = $580,000 x 5% = $29,000

interest capitalized for 2018:

January 1, 2019 $580,000 x 3/12 = $145,000

January 30, 2019 $810,000 x 2/12 = $135,000

total weighted accumulated expenditures = $280,000

interest capitalized during 2019 = $280,000 x 5% = $14,000

6 0
3 years ago
Henry Garrison starts the month with a balance on his credit card of $1,130. The average daily balance for the month, including
hoa [83]

Answer:

Interest expense $ 11.15

Explanation:

As the bank uses the average daily balance excluding new purchases we should use that amount to solve for the interest expense.

The rate is one and a half percent therefore, 1.5% --> 0.015

principal x rate = interest

$743 x 0.015 = $ 11.145

3 0
3 years ago
Third national bank has reserves of $20,000 and checkable deposits of $200,000. the reserve ratio is 10 percent. households depo
irga5000 [103]
Reserves - $20,000
Checkable Deposits - $200,000
Reserves Ratio - 10
Household Deposit - $15,000
Level of Excess Reserves - ?

Solution:
Checkable Deposits = $200,000 + $15,000 = $215,000
Required Reserves = 0.10 x $215,000 = $21,500
Excess Reserves = Actual Reserves - Required Reserves
= $35,000 - $21,500 = $13,500
6 0
3 years ago
Other questions:
  • There are 3 teachers to every 57 students at Oakdale Middle SchooL If there are 798 students in the school, how many teachers ar
    6·1 answer
  • First Choice Carpets is considering purchasing new weaving equipment costing $ 734 comma 000. The​ company's management has esti
    12·1 answer
  • Since he started at american eyeful pictures, inc., david has worked in japan, china, and thailand. the company has probably set
    9·1 answer
  • Ginormous Oil entered into an agreement to purchase all of the outstanding shares of Slick Company for $60 per share. The number
    8·1 answer
  • Hailey, inc., has sales of $19,630, costs of $9,400, depreciation expense of $2,070, and interest expense of $1,560. assume the
    15·1 answer
  • Quiz during the class. Calculate the WACC which represents the "hurdle rate" for a typical project with average risk using midpo
    14·1 answer
  • Someone falls into the water from a dock. what is the proper sequence of actions to help this person?
    9·1 answer
  • Your company’s human resource manager is away from the office serving in the National Guard, and you have four open positions to
    10·1 answer
  • Discuss characteristics of modern organization and give reasons why there are frequent changes in organizations​
    8·1 answer
  • How do i type i am serious
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!