The Answer is A Paying attention to detail I just took the Apex test
Answer:
Government spending would have to change by <u>$1.6 billion</u>
Explanation:
The marginal propensity to consume (MPC) refers to the proportion of an increase in aggregate income that is spent on consumption of commodities by a consumer.
Since from the question, we have:
MPC = Marginal propensity to consume = 0.75
The MPC can therefore be used to calculate the fiscal multiplier which measures the effect of government spending on real GDP as follows:
Fiscal multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 1 / 0.25 = 4.0
Therefore, we have:
Change in government spending = Fiscal multiplier * Amount of targeted increase real GDP = 4.0 * $400 million = $1.6 billion
Therefore, government spending would have to change by <u>$1.6 billion</u> to generate $400 million increase in real GDP.
The answer is true. Evaluation research can be characterized as a kind of study that utilizations standard social research strategies for evaluative purposes, as a particular research procedure, and as an appraisal procedure that utilizes exceptional systems remarkable to the assessment of social projects.
Answer:
Bonds provides more opportunities and offers than stocks.
Explanation:
- Bonds are a better option than stocks as bonds tend to give a good return. That is the bonds are less volatile and less risk markets they have a high interests rates and tends to offer saving rates at a bank and hae various advantages.
- Bonds also perform well the stocks decline and hence they are better than stocks and should prefer to invest in the money in future.
Answer:
$42,000
Explanation:
Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.
Insurance expense of $210,000
Tax rate of 20%
( $210,000 × .20 )
=$42,000
Therefore the amount of the deferred tax liability at the end of 2021 will be $42,000
