To find the answer, we first calculate the multiplier.
By using the equation,
ms= 1 ÷ (1 – MPC)
MPC = marginal propensity to consume = 0.8
ms= 1 ÷ (1 – MPC) = 1 ÷ (1 - 0.8)
= 5
Thus, the multiplier is 5.
An increase in government spending = $600 billion
Now, multiplied $600 billion by the multiplier, which is 5.
$600 billion x 5
= $3,000
Thus, the answer is $3,000 billion increase in real GDP.
Answer:
The necessary investement today is $783.53
Explanation:
Giving the following information:
An investor wishes to have $1,000 available in five years. The interest rate is 5%.
We need to use the following formula:
PV= FV/(1+i)^n
FV= 1000
i=0.05
n=5
PV= 1,000/(1.05)^5= $783.53
Answer:
Explanation:
The products rank are shown below:
VP YI WX
Selling price per unit (A) $248.04 $230.66 $505.44
Variable cost per unit (B) $190.71 $172.14 $388.80
Contribution margin
per unit (A-B) or C $57.33 $58.52 $116.64
Centiliters of compound W (D) 3.90 3.80 8.10
Contribution per centiliters (C÷D) 14.7 15.4 14.4
Rank 2 1 3
Answer:
The amount to deposited = $1,538,461.54
Explanation:
<em>A fund that pays a fixed amount for forever is an example of a perpetuity. Hence, the amount to be deposited today is the present value of the perpetuity.</em>
This given below as follows:
PV = A × 1/r
PV - present value of perpetuity
r- Interest rate = 6.5%. A- annual cash flow - 100,000
PV = 100,000 × 1/0.065= 1,538,461.54
The amount to deposited = $1,538,461.54
Answer:
- Dr Finished goods inventory $60,000
Cr work in process inventory $60,000
Cr Sales Revenue $37,400
- Dr Cost of Goods Sold $25,000
Cr Finished goods inventory $25,000
Explanation:
First it's necessary to register the process of transfer the goods from WIP to finished products.
- Dr Finished goods inventory $60,000
Cr work in process inventory $60,000
Second recorded the sales of the goods in cash to a customer.
Cr Sales Revenue $37,400
And finally it necessary to register the cost of the goods sold, in this case only the Job10.
- Dr Cost of Goods Sold $25,000
Cr Finished goods inventory $25,000
