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Serjik [45]
3 years ago
13

If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary the: 


A. Smaller is the economy's MPS
B. Larger is the economy's MPS
C. Smaller is the economy's MPC
D. Larger is the unemployment rate
Business
1 answer:
Varvara68 [4.7K]3 years ago
3 0

Answer:

The correct answer is option A.

Explanation:

An expansionary fiscal is adopted to boost economic activities. It is used in case of a recession. The main tools of expansionary fiscal policy are a decrease in taxes and an increase in government spending.

A cut in taxes will be more expansionary if the MPS or marginal propensity to save is smaller. Smaller MPS means when the disposable income increases because of the tax cut, the consumers will save less and consume more of their income. This will cause an increase in demand and consequently, an increase in output and employment.

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Kraven Corp. borrows $100,000 by signing on a 1-year, 8% promissory note from General Finance Company and assigns $120,000 of it
Aleks [24]

Answer and Explanation:

The journal entry is shown below:

Cash Dr $98,800

Finance charge Dr ($120,000 × 1%) $1,200

       To Liability - Financing Arrangement $100,000

(being receipts of cash is recorded)

Here cash and finance charge is debited as it increased the assets and expenses and liability is credited as it also increased the liabilities. Also, the cash & expenses contains normal debit balance and liabilities contains normal credit balance

6 0
3 years ago
Adam borrowed money to buy a new car. The bank now has a lien on the car. What could happen if Adam doesn't make his payments on
larisa [96]
The correct answer is A The bank could sell the car.
The bank could take back the car and sell it to recover its money.

6 0
3 years ago
Read 2 more answers
Cards offered by retail stores to use specifically in their stores are called what type of credit card?
Paul [167]

Answer:

It is called store credit card

Explanation:

The other is a bank or card network such as Visa, MasterCard, Discover or American Express. With co-branded credit cards, cardholders may get merchandise discounts or rewards points when they buy from the sponsoring merchant, but can also use the cards any other retailer that takes cards from the bank or card network.

7 0
3 years ago
Consider the following information for Maynor Company, which uses a periodic inventory system:
ohaa [14]

Answer:

Instructions are below.

Explanation:

Giving the following information:

January 1 Beginning Inventory 29 $79 $2,291

March 28 Purchase 39 $85 3,315

August 22 Purchase 58 $89 5,162

October 14 Purchase 63 $95 5,985

The company sold 63 units on May 1 and 58 units on October 28.

<u>First, we need to calculate the units in ending inventory:</u>

Ending inventory in units= 189 - 121= 68

<u>To calculate the ending inventory under the FIFO (first-in, first-out) method, we need to use the cost of the last units incorporated into inventory.</u>

Ending inventory= 63*95 + 5*89= $6,430

COGS= 29*79 + 39*85 + 53*89= $10,323

<u>To calculate the ending inventory under the LIFO (last-in, first-out) method, we need to use the cost of the first units incorporated into the inventory</u>

<u></u>

Ending inventory= 29*79 + 39*85= $5,606

COGS= 63*95 + 58*89= $11,147

<u>Finally, to calculate the ending inventory using the weighted-average, we need to calculate the weighted average price:</u>

<u></u>

weighted average price= 16,753/189= $88.64

Ending inventory= 68*88.64= $6,027.52

COGS= 121*88.64= $10,725.44

8 0
3 years ago
Beckham Corporation has semiannual bonds outstanding with 13 years to maturity and the bonds are currently priced at $746.16. If
Artyom0805 [142]

Answer:

d. 8.125%.

Explanation:

The computation of the after tax cost of debt is shown below:

Given that

NPER = 13 × 2 = 26

PMT = $1,000 × 8.5% ÷ 2 = $42.50

Assume future value would be $1,000

Present value is $746.16

The formula is given below:

= RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula, the rate is

= 6.25% × 2

= 12.50%

Now the after tax cost of debt is

= 12.50% × (1 - 0.35)

= 8.125%

Hence, the correct option is d. 8.125%

6 0
2 years ago
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