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uranmaximum [27]
3 years ago
7

A decrease in government spending (this question is Extra credit) a. increases the interest rate and so decreases investment spe

nding decreases. b. increases the interest rate and so investment spending increases. c. decreases the interest rate and so investment spending increases. d. decreases the interest rate and so investment spending decreases.
Business
1 answer:
Solnce55 [7]3 years ago
8 0

Answer:

b. increases the interest rate and so investment spending increases.

Explanation:

According to the IS-LM framework,

An increase in government spending shifts IS upward resulting in higher interest rate as well as GDP. The higher interest rate will hamper investment spending.

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In its first year of operations, Gomes Company recognized $28,000 in service revenue, $6,000 of which was on account and still o
Mademuasel [1]

Answer:

a. The first year's net earnings under the cash basis of accounting is $7,600 and the first year's net earnings under the basis of accounting is $12,200

b. Accrual basis of accounting provides more useful information.

Explanation:

a. In order to calculate the first year's net earnings under the cash basis of accounting we would have to use the following formula:

Cash basis net earnings = Service revenue (Cash) – Cash expenses – Prepaid expenses

Cash basis net earnings =$22,000 – $12,000 – $2,400

Cash basis net earnings =$7,600

In order to calculate the first year's net earnings under the the basis of accounting we would have to use the following formula:

Accrual basis net earnings = Service revenue – Operating expenses incurred

Accrual basis net earnings= $28,000 – $15,800

Accrual basis net earnings=$12,200

b. Accrual basis of accounting provides more useful information, because in this system revenues are recorded what actually earned and expenses are recorded what actually incurred for earning such revenues. Therefore, it gives better profit picture

5 0
3 years ago
Which best describes how specialized producers decrease their opportunity costs?​
zavuch27 [327]

Answer: by limiting the types of goods produced

7 0
3 years ago
which phase of the goals-based strategic planning involves an in-depth analysis of the company and its competitors?
Phantasy [73]

Considering the business planning strategies, the phase of the goals-based strategic planning that involves an in-depth analysis of the company and its competitors is "<u>Analyze the situation</u>."

This is because, during this stage, firms can carry out an analysis that is often called SWOT analysis.

This allows the business firms to carry out the analysis on their own strength, weakness, and then opportunities and threats of their competitors.

Some other the phases of the goals-based strategic planning include the following:

  • Set direction;
  • Define strategies;
  • Deploy plan

Hence, in this case, it is concluded that the correct answer is "<u>Analyze the situation."</u>

Learn more here: brainly.com/question/2827364

7 0
2 years ago
A stock is expected to pay $0.70 per share every year indefinitely. If the current price of the stock is $18.90, and the equity
PolarNik [594]

Answer:

$32.72

Explanation:

In this question, we are asked to calculate the price an investor would be expected to pay per share in the next five years.

We proceed as follows to calculate this.

Dividend = $0.70

Share price = $18.90

Hence = Dividend / Share price

= 0.70 / 18.90

= 0.037037

Cost of Equity = 7.9%

Expected growth = 0.037037 + 0.079

= 0.116037

Add one to it = 1 + 0.116037

= 1.116037

Share price after 5 year = $18.90 * (1.116037)^5 = $32.7231

5 0
2 years ago
In Opulencia, the marginal propensity to save is only 0.10. In an effort to promote the virtues of saving, the government starts
BartSMP [9]

Answer:

B) The multiplier falls, making spending less powerful.

Explanation:

As we know that the multiplier refers to a factor where the changes with respect to increase or decrease of another things is to be seen.

Also,

MPS + MPC = 1

And,

Multiplier = 1 ÷ (1 - MPC)

or

= 1 ÷ MPS

In addition to this, MPS has the negative relationship with the multiplier

that means if the MPS increased then the multiplier decreased and vice versa

Therefore the option B is correct

4 0
3 years ago
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