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CaHeK987 [17]
3 years ago
11

If the MPC in an economy is 0.8, government could close a recessionary expenditure gap of $100 billion by cutting taxes by

Business
1 answer:
QveST [7]3 years ago
8 0

Answer:

cutting taxes by $125 billion

Explanation:

given data

economy = 0.8

expenditure gap = $100 billion

to find out  

cutting taxes

solution

we get here cutting or reduce taxes that is express as

cutting taxes = \frac{expenditure\ gap}{MPN\ economy} ......................... 1

cutting taxes = \frac{100}{0.8}    

solve we get cutting taxes

cutting taxes = $125 billion

so cutting taxes by $125 billion

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Life insurance companies tend to invest in long-term assets such as loans to manufacturing firms to build factories or to real e
andriy [413]

Answer:

The answers are:

  1. automobile insurers
  2. life insurance companies
  3. a life insurance policy
  4. longer
  5. longer-term

Explanation:

When a company may need money in a short notice (like auto insurers), they will need to make liquid investments. That means that they can turn their investments into cash very rapidly. Since T-bills are traded all the time, they are very liquid investments, although they aren't very lucrative investments.

On the other hand, companies that know that they will not be needing a lot money promptly (life insurance), can afford to invest in projects with a longer life span that can be more profitable also. Usually liquid investments have smaller rates of return, while long term investments have higher rates of return.

4 0
3 years ago
Select the true statement about the impact of automation on employment. a.) Automated processes have no effect on the number of
avanturin [10]

Answer:

b.) While some job loss may occur as a result of automation, the potential for job creation exists

Explanation:

Automation is the process by which a the production process that is usually managed by people becomes mechanised.

The control and monitoring functions that people usually do is now transferred to automatic devices.

While this will cause some job loss as a result of lack of skill to operate the new machines, it will also result in an avenue for fresh employment.

Employees can acquire the required skill to operate the machines that are now used in the production process.

8 0
3 years ago
Susan Inc. has been disappointed with the Willow Division's performance over the last few years and has decided that it would be
labwork [276]

Answer:

$2,560,000

Explanation:

impairment loss = division's book value - division's fair market value = $3,080,000 - $2,320,000 = $760,000

Assets held for sale are no longer depreciated, but they must be recorded at lower value between carrying cost and fair market value. Since the fair market value is lower than carrying value, then an impairment loss results.

loss on discontinued operations = loss from operations 2019 + impairment loss = $1,800,000 + $760,000 = $2,560,000

3 0
3 years ago
George offers to sell his car to Suzy for $10,000 on the coming Sunday, to which Suzy agrees. They write down the details on a p
max2010maxim [7]

Answer:

Promissory estoppel

Explanation:

Promissory estoppel means that in legal tenet that a promise or pledge can be enforced by law, actually if formulated without legal consideration, if the George now the (promisor) has made a pledge to a Susy the (promises) who then depends on that promise for a subsequent detriment. So what Promissory estoppel is expected to do is to stop the (George) promisor from insisting that an underlying promise should not be legally authorized or implemented. So Susy can sue George on the basis of promissory estoppel and get a reward for George's disappointment

8 0
3 years ago
If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of
Lerok [7]

Answer:If the firm had sharp seasonal sales patterns, or if it grew rapidly during the year, many ratios would most likely be distorted.

Explanation: Fluctuations in Economics patterns have distorting effects on the ratios of a company or an economy especially if the the seasonal patterns has been consistent for a certain period. THE VALIDITY OF MOST RATIOS ARE SEVERELY AFFECTED BY SHARP CHANGES WHICH MAKES ECONOMIC WATCHERS FEEL THE RATIOS ALREADY ANALYSED ARE NOT VALID.

A consistent flow pattern is desired in an economy and in business Organisation as it helps to give Economic watchers enough confidence in the ratios already existing.

4 0
3 years ago
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