What is the appropriate fiscal policy when an economy goes into recession?

According to the keynesian model, what are the two components of consumption spending? what factors determine how consumption ch

kkurt [141]

A simple Keynesian model follows four principles:

1. Accumulated expenditures, income, and output are the same.
2. All input of spending into the economy must equal all withdrawals
3. Investment is an input.
4. Saving is a withdrawal

According to Keynesian analysis, of households intend to save more, they will become poorer. The theory about Keynesian analysis applies to economic where an increase in savings decreases the circular flow of income. S when the households save more, they are reducing the stream of income for other households and therefor diminishes the overall economic activity.

5 0

3 years ago

Corey notices a "backlash" against health food among people who eat out. He decides to open a restaurant that stresses "good hom

Llana [10]

Answer:

Opportunity

Explanation:

Corey notices a "backlash" against health food among people who eat out. He decides to open a restaurant that stresses "good home cooking" heavy with gravies , bread , oils , etc. Corey has identified and is trying to capitalize on an opportunity in the market environment.

Opportunities are external thing . You have to look for them , it is not something which come to you by it own .Instead you have to work hard for it.

You should have the full knowledge about the external environment . You should have the knowledge about the market about people and should know about the taste and preferences of the people.

There is always an opportunities you just need to identify it . Here Corey identify the need and he have the means to fulfill that need which also essential . Only identifying the opportunities is not the only thing but also you have the means to fulfill them . After that you can gain benefits.

7 0

3 years ago

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6300, $11,300, and $

sladkih [1.3K]

Answer:

$27,642.86

Explanation:

To determine the price Marko will pay today to buy ABC Co, one has to find the present value of the cash flows.

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

Cash flow in year one = $6300

Cash flow in year two = $11,300

Cash flow in year three = $17,500

I = 11%

Present value = $27,642.86

To find the present value using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

7 0

3 years ago

Hache Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departmen

Greeley [361]

Answer:

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797

Explanation:

Calculation of Equivalent Units of Production

Materials

Units transferred to the next department (5,800 × 100%) = 5,800

Units in ending Work In process (1,850 × 50%) = 925

Total Equivalent Units of Production for Materials = 6,725

Conversion

Units transferred to the next department (5,800 × 100%) = 5,800

Units in ending Work In process (1,850 × 20%) = 370

Total Equivalent Units of Production for Conversion Costs = 6,170

Calculation of Cost per Equivalent units of Production

Materials

Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials

= ($ 8,700 + $ 91,000) ÷ 6,725

= $14.825

Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials

= ($ 8,500 + $ 126,300) ÷ 6,170

= $21.848

Calculation of cost of ending work in process inventory

Materials ( 925 × $14.825) = $13,713.12

Conversion Cost ( 370 × $21.848) = $8,083.76

Total = $21,796.88

Thus,

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797.

5 0

3 years ago

Directions: After reading the texts, choose the best answer for the multiple-choice questions below and respond to

creativ13 [48]

Answer:

Their study of data from the Gallup-Healthways Well-Being Index found that while “life evaluations rise steadily with income,” emotional well-being drops off at about $75,000 a year. Beyond $75,000, money is important for life evaluation but does nothing for happiness, enjoyment, sadness, or stress.

Explanation:

6 0

3 years ago

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