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3 years ago

Economists who believe in sound finance would say that in a recession, the government should:

Business

1 answer:

ZanzabumX [31]3 years ago

8 0

Answer:

The answer is: D) Maintain a balanced budget for political and moral reasons.

Explanation:

First of all, the Ricardian Equivalence Theorem is only hypothetically true with a lot of controversial assumptions and it has never been proven to work for extended periods of time. The notion that a government´s spending doesn´t affect people´s consumer and savings habits is not true.

Empirically whenever the government overspends and increases its deficit (usually by issuing bonds), savings from private citizens and companies tend to decrease.

The idea of sound finance tends to balance the government´s budget, not increase its deficit.

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"The production supervisor estimates that the ending work-in-process is 16 percent complete. Compute the cost of paint transferr

Flauer [41]

Answer:

Explanation: see attachment

3 0

3 years ago

Blue Spruce Corp. reported net income of $194,740 for 2022. Blue Spruce Corp. also reported depreciation expense of $36,900 and

Svetlanka [38]

Answer:

Blue Spruce Corp

Statement of Cash Flows for the year ended December 31, 2022

Operating activities section:

Net income $194,740

add non-cash flow items:

Depreciation expense 36,900

Loss on disposal of plant assets 54,030

Adjusted operating income $285,670

Working capital changes:

Increase in accounts receivable (15,650)

Increase in accounts payable 15,880

Increase in prepaid expenses (4,250)

Net cash from operating activities $281,650

Explanation:

a) Data and Calculations:

Reported 2022 net income = $194,740

Depreciation expense = $36,900

Loss on disposal of plant assets = $54,030

Increase in accounts receivable = $15,650

Increase in accounts payable $15,880

Increase in prepaid expenses $4,250

b) The operating activities section is one section of the Statement of Cash Flows. It shows the cash inflows and outflows from Spruce's normal business activities. Other sections of Spruce's Statement of Cash Flows that show activities outside operating activities are the investment activities section and financing activities.

7 0

3 years ago

The U.S. government agency that advises and assists small businesses by providing management training and financial advice and l

Paraphin [41]

A U.S. government agency that works to assist small businesses is called the Small Business Administration(SBA).

<h3>What does the Small Business Administration do?</h3>

The Small Business Administration was established under the Eisenhower tenure in order to boost the nation's economy.

They work to help small businesses by offering them several types of support such as management training and loans.

Find out more on the Small Business Administration at brainly.com/question/13424073.

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7 0

2 years ago

Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontrac

Brilliant_brown [7]

Answer:

Supplier's quotation (2,400 x $6.25) 150,000

Less: Relevant cost of production:

Direct material (2,400 x $31) 74,400

Direct labour (2,400 x $18) 43,200

Variable overhead (2,400 x $9) <u>21,600</u> <u>139,200</u>

Savings <u> 10,800</u>

The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.

Explanation:

In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.

8 0

3 years ago

A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next

aev [14]

Answer:

a-1. The present value of Plan 1 = $93.08

a-2. The deal 2 which involves paying immediately adn taking the 10% discount is better.

Explanation:

a-1.

The interest rate of 5% is taken as the discount rate to convert future cash flows into the present value.

The First payment plan with installments has a present value of,

Present Value-Plan 1 = 25 + 25/1.05 + 25/1.05² + 25/1.05³ = $93.08

a-2.

The first plan will cost $93.08 in the present value.

The second plan will involve immediate payment and a discount of 10%vwhch makes the present value of plan 2 as $90 (100 - (100*0.1)).

Thus, the second deal or deal involving immediate payment and taking the discount is better.

6 0

3 years ago