Answer: The answer is $ 1 billion.
Explanation:
MPC stands for the marginal propensity to consume.
If MPC is 9 it implies that the multiplier is 10 i.e 1/(1-0.9). The rise in aggregate demand is equal to multiplier times change in government expenditures so to boost aggregate demand by 10 billion dollar government has to increase expenditure by Dollar 1 billion.
Answer:
Final Value= $414,135.43
Explanation:
Giving the following information:
Quarterly deposit= $32,000
Number of quarters= 3*4= 12
Interest rate= 0.0545/4= 0.01363
To calculate the final value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= quarterly deposit
FV= {32,000*[(1.01363^12)-1]} / 0.01363
FV= $414,135.43
Answer:
The correct answer is option D.
Explanation:
Sanctions can be defined as penalty levied on other countries or citizens of other countries. There are a number of trade sanctions such as
- Tariffs
- Quotas
- Non-tariff barriers
- Embargoes
These trade sanctions affect both the sanctioning country as well as the sanctioned country. The imposition of trade sanctions on a country affects exports of the country. As the producers are able to supply less, there will be a reduction in producer surplus.
The imports for the consumers in the sanctioning country will decline. There will be less choice for them. This will cause a reduction in consumer surplus.
,Answer:
Explanation:
a. Stockholders' equity December 31, 2017
Assets = Equity + Liabilities
529,000 = Equity + 127,000
Equity = 529,000 - 127,000
= $402,000
b. Stockholders' equity in 2018:
Assets = Equity + Liabilities
(529,000 + 101,000) = Equity + (127,000 + 30,000)
630,000 = Equity + 157,000
Equity = 630,000 - 157,000
= $473,000
The question is incomplete. The following is the complete question.
Sag Manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are the fixed costs?
Answer:
Fixed costs are $480000
Explanation:
The break even sales is the value of total sales or total revenue where it equals total cost and the company makes no profit or no loss. The break even in sales is calculated by dividing the fixed costs by the contribution margin ratio.
Break even in sales = Fixed cost / Contribution margin ratio
Plugging in the available values we can calculate the value of fixed cost. We know that the break even in units is at 400000 units. Thus, its value in sale will be 400000 * 6 = 2400000
2400000 = Fixed cost / 0.2
2400000 * 0.2 = Fixed cost
Fixed costs = $480000