Answer:
option c) $ 12 billion
Explanation:
Data provided :
Required reduction in consumption = $ 36 billion
MPC = 0.75
Now,
Total income = Required reduction in consumption / MPC
or
the Increase in tax = $ 36 billion / 0.75
or
= $ 48 billion
the government can raise the tax = $ 48 billion - $ 36 billion = $ 12 billion
Hence, the answer is option C
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
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44900-4200=40700
He has lost 4200
Answer:
$16.125≅ $16.13
Explanation:
in the question
Correlation coefficient β doubles
we know that
Required return= risk free return + (market risk premium)*β
0.13= 0.05 + 0.07*β
β= 1.1428
current β of 1.1428
now
where
k= expected return
D= expected dividend after the end of the year
P= current market prize per share
=3.38
so current dividend is $3.38 per share
now, when β doubles it become 2.28
hence required return = 0.05 +0.07*2.28
= 0.2096
=20.96%
The dividend remains the same D= $3.38
now
=$16.125
so, when the β doubles, the prize of the market per share becomes $16.125
Answer:
c. Kena recognizes a gain of $30,000
Explanation:
cash 650,000 debit
land 250,000 credit
gain at disposal 350,000 credit
liabilities 500,000 debit
cash 500,000 credit
Then, the company will close all account and leave kena account with a capital of 150,000 to mathc the remaining 150,000 cash
as her basis is 120,000 there will be a gain for 30,000