________ is the two-way flow of communication between buyer and a seller that is designed to influence the buyer's purchase deci
1 answer:
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Answer:
Follows are the solution to this question:
Explanation:
In point A:
The estimated amount of uncollectible allowance =
In point B Journal
Titles and descriptions of accounts Debit Credit Calculation
Expenditure on bad debts
Doubted debt allowance
(Bad Debts Expense recorded)
In point C Journal
Titles and descriptions of accounts Debit Credit Calculation
Expenditure on bad debts
Doubted debt allowance
(Bad Debts Expense recorded)
Answer:
(B) $20 billion
Explanation:
Given a certain level of MPC, an increase in government spending (G) by a certain amount translates to an increase in aggregate demand (AD) through the relationship below.
where Δ means <em>change.</em>
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Therefore, given ΔAD of $50 billion, and MPC of 0.6,
=
=
= ΔG = 50 * 0.4 = 20
Therefore, increase in government purchases = $20 billion.