Answer:
An increase in government spending of $300 billion and a tax cut of $300 billion will have <u>EQUAL</u> effects on the budget balance and <u>UNEQUAL</u> effects on real GDP.
Explanation:
Both actions will increase the budget deficit by $300 billion each.
But the total effect of government spending in the aggregate demand is determined by the government spending multiplier = 1/marginal propensity to save (MPS).
On the other hand, the effect of the tax cut will be determined by the marginal propensity to consume (MPC).
Answer:
The answer to this question is B)60 percent.
Explanation:
As we know that transfer pricing is the method used for moving funds which represents intrafirm sales.
The transfer pricing is done to transfer the profits to the parent country by overpricing a product . The intrafirm sales usually includes 60 percent of the world trade.
Hence we conclude that the answer to this question is 60 percent.
The cost of advertising is part of the firm's variable cost and if advertising enables the firm to sell a greater output, its average total cost does not change.
Variable costs are dependent on the production output and sales. The variable cost of production is a constant amount per unit produced.
As the volume of production and output increases, variable costs will also increase. Alternatively, when fewer products are produced, the variable costs associated with production will consequently decrease.
Different examples of variable costs are sales commissions, cost of raw material, direct labor costs, used in production, and utility costs.
To know more about variable costs here:
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Answer and Explanation:
The computation is shown below:
a. The inventory turnover is
= Cost of Goods Sold ÷ Average Inventory
= $351,050 ÷ ($170,000 + $125,000) ÷ 2
= $351,050 ÷ $147,500
= 2.38 times
b. Now days in inventory is
= 365 ÷ inventory turnover ratio
= 365 ÷ 2.38 times
= 153.36 days
Answer:
Method used: Vote
Explanation:
There are 4 common ways of making decisions:
- Command : decisions are made with no involvement.
- Consult: invite input from others and then the desition makers take the final decision.
- Vote: discuss options and then call for a vote.
- Consensus: talk until everyone agrees to one decision.
In this case, since all the members vote for their candidate and trhen the one that receives more votes will be selected, the method used is vote.
