Answer:
The correct answer is option b.
Explanation:
An increase in government expenditure will have a smaller effect on the aggregate demand if the MPC is smaller. This happens because the consumers will save the major share of their income and not consume it if MPC is small.
This will not increase consumer spending as much as they should. And thus aggregate demand will increase by a small amount.
The change in aggregate demand will also be smaller if the investment is interest elastic. The government increases spending by borrowing from the loanable funds market.
This increases the demand for loanable funds. The interest rate, as a result, increases. This increase in interest rate makes borrowing costlier for private investors.
This further causes the investment expenditure to increase as much as it should. And thus aggregate demand will increase by a small amount as well.
Answer:
The ending work in process inventory balance is $3,120
Explanation:
Ending work in process inventory =
Beginning Work in progress inventory + Direct materials + Direct labor + Manufacturing overhead (applied) – Cost of goods manufactured
Beginning Work in progress inventory =$32,900
Direct materials = $54,700
Direct labor = $64,100
Manufacturing overhead (applied) = 120% * $64,100 = $76,920
Cost of goods manufactured = $225,500
Ending work in process inventory = $32,900 + $54,700 + $64,100 + $76,920 - $225,500
= $3,120
Therefore, The ending work in process inventory balance is $3,120
Answer:
C. Liabilities
Explanation:
Financial accounting can be defined as the field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time.
Owner's equity is simply what a person owns outrightly and it is also referred to as net worth. It can be defined as the value of financial and non-financial assets owned by a person minus the total outstanding liabilities or debts of that person. Simply stated, owner's equity refers to the difference between the amount a person own (asset) and the amount owed (liability).
Mathematically, net worth is given by the formula;
Making liabilities the subject of formula, we have;
In Financial accounting, liability can be defined as the amount of money being owed by an individual or organization to another.
Simply stated, liability is a debt being owed and as such it usually has "payable" in its account title on the balance sheet.
Generally, liabilities are recorded on the right side of the balance sheet and it comprises of financial informations such as warranties, bonds, loans, deferred revenues, mortgages, account payable etc.
Hence, Assets minus Owner's Equity is equal to Liabilities.
Answer:
The annual scholarship payment = $5,693.25
Explanation:
Data Given:
In this question, we are required to calculate the future value up till 9th year and then
Donating Amount = $100,000
Time period = 9 years
Note: Here in this question, interest rate is not given without which this question is incomplete. However, I have found similar question on the internet and will be using its interest rate to solve this question for the sake of understanding and concept.
So, the interest we use will be = 4%
Formula for the future value:
FV = Present Value 
Present value = $100,000
n = 9 years
r = 4% = 0.04
FV = 100,000 
FV = 100,000 x 1.4233118
FV = Future Value = $142,331.18
The annual scholarship payment = FV * r
The annual scholarship payment = 142,331.18 * 0.04
The annual scholarship payment = 5,693.247
The annual scholarship payment = $5,693.25
Answer:
D) a rise in price
Explanation:
At the equilibrium point, the quantity demanded and the quantity supplied are the same. There is no excess shortage or supply in both demand and supply.
A shortage occurs when suppliers are not able to meet the market demand. Here, demand is the quantity that buyers are willing to buys at a specific price over time. As per the law of demand, high product price causes demand to decrease while low price results in increased demand.
A shortage of a product means its demand is high. Many buyers are willing to buy the commodity at the current price. As per the law of demand, a price increase will result in reduced demand and achieve equilibrium.