The answer is true.
Keynesian contend that because prices are fairly rigid, changes in any aspect of spending including government, consumer, or investment spending can produce changes in output.
For instance, the output will grow if government expenditure rises while all other spending factors stay the same.
The so-called multiplier effect, which is when output grows by a multiple of the initial shift in spending that created it, is also included in Keynesian models of economic activity.
Therefore, a ten billion dollar increase in government spending might result in a fifteen billion dollar increase in total production (a multiplier of 1.5) or a five billion dollar increase (a multiplier of 0.5).
Hence, from a Keynesian perspective, the way out of a recession includes an increase in government spending, a tax cut, or an increase in transfer payments.
Learn more about Keynesian:
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Answer:
the promised gross rate of return on the loan is 7.52%
Explanation:
The computation of the promised gross rate of return is shown below:
= (Rate of interest + Origination fees) ÷ [1 - (Demand deposit x (1 - Reserve requirement)]
= (6.55% + 0.5%) ÷ [1 - (7% × (1 - 10%)]
= (0.0655 + 0.005) ÷ [1 - (0.07 × (1 - 0.10)]
= 0.0705 ÷ (1 - 0.063)
= 0.0705 ÷ 0.937
= 0.07524 or 7.52%
Hence, the promised gross rate of return on the loan is 7.52%
I would assume inside of an office building with cubicles.
Answer:
a.
Accumulated depreciation 44600 Dr
Cash 52700 Dr
Equipment 84400 Cr
Gain on disposal 12900 Cr
b.
Accumulated depreciation 44600 Dr
Cash 39800 Dr
Equipment 84400 Cr
c.
Accumulated depreciation 44600 Dr
Cash 34700 Dr
Loss on disposal 5100 Dr
Equipment 84400 Cr
Explanation:
First we need to determine the net book value of the equipment at the time of sale. The net book value is the net value after deducting accumulated depreciation from the cost of the asset.
Net Book value = Cost - Accumulated depreciation
Net Book Value = 84400 - 44600 = $39800
- If the asset is sold for more than its net book value, there is gain on disposal.
- If it is sold for exactly its net book value, there is no gain or no loss on disposal.
- If it is sold for less than its net book value, there is loss on disposal.
a.
Gain on disposal = 52700 - 39800 = $12900
b.
No gain or no loss as Net Book Value of the asset equals the amount of cash it is sold for.
c.
Loss on disposal = 34700 - 39800 = - $5100
At a price of $13, quantity demanded is 120 units<span>, quantity supplied </span>is 130 units; therefore,<span> excess supply</span> has occurred. This is also called as economic surplus. This is the effect when the price set to the product is above its equilibrium level which is determined by its supply and demand.<span> </span>