Answer:
The answer is option (b) $60.75
Explanation:
Solution
Given that
A certain economy, Income is =$100
Consumer spending is =$60
The value of multiplier is =4
Now we need to know when the income is $101, consumer spending, the customer spending will be what?
Now,
Multiplier (k)= 1/1-MPC (marginal propensity to consume)
4=1/1-MPC
Thus
MPC= 1-1/4
MPC=3/4
MPC=.75
So,
MPC= Change in consumption/change in income.
.75=Change in C/101-100
Change in C=.75*1
Change in C=.75
Hence
The new consumption =60+.75=60.75
Therefore, when the income is $101, the consumer spending is $60.75
Answer:
b. Zone of service
Explanation:
The restaurant is capable of serving 138 customers per hour, and the average demand was 94 customers per hour. That means that the average demand is located with in the zone of service. If hte demand was higher than the restaurant's capacity, then it would be considered critical zone.
Answer:
The amount of the additional projected liability that should be recognized is $28,000
Explanation:
For computing the amount of the additional projected liability, we have to apply the formula which is shown below:
= Tax benefit in 20% - Tax benefit in 40%
= $70,000 - $42,000
= $28,000
The other information which is given in the question is irrelevant. So, it is not been considered in the computation part. Hence, it is ignored.
We took the higher value between $42,000 and $14,000.
Answer:
$45,111.41
Explanation:
For calculation of value of the payments today first we need to find out the value at 3 years which is shown below:-
Value at 3 years = PMT × (1 - (1 ÷ (1 + r^n))) ÷ r
= $3,000 × (1 - (1 ÷ (1.0265 ^24))) ÷ 0.0265
= $52,776.45
Now, The value of the payment today = Value at 3 year ÷ (1 + r^n)
= $52,776.45 ÷ (1.0265^6)
= $45,111.41
Therefore we have applied the above formula.
Answer:
Option (C) is correct.
Explanation:
Dealers profits come from the bid-ask spread in a dealer market. The bid-ask spread is a premium that come from bearing the risk. Most of dealers buy specific securities in wholesale and sell it in retail. The dealer's profit is the difference between the maximum purchase price made by the buyer and the least price at which seller wants to sell their securities. Hence, the difference between these two terms represents the dealer's profit that is bid-ask spread.
