Answer:
$100; $75
Explanation:
Given that:
- Tax revenue falls by 100 million dollars
- marginal propensity to consume (MPC) is 0.75.
Due to the fall in tax revenue, disposable income will increase by the same amount, that is, $100 million.
Consuption spending will initially increase by $75 million, as shown below:
= MPC × tax revenue fall
= 0.75 × $100,000,000 = $75,000,000
Answer:
Doing a financial statement analysis.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Financial statement analysis can be defined as the process of analyzing, estimating and reviewing the financial statements of a business firm or organization in order to make better economic decisions and profits in the future.
Hence, when creditors, managers, and investors look at expenses as a percentage of revenue, they are doing a financial statement analysis.
<h2><em><u>Answer:</u></em></h2><h2><em><u>Answer:Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales)</u></em></h2>
