Answer: b. left by about $26.7 billion.
Explanation:
The multiplier determines how much government spending affects the aggregagte demand.
Multiplier is:
= 1 / ( 1 - MPC)
= 1 / (1 - 0.625)
= 2.67
The effect on Aggregate demand is:
= Government spending * Multiplier
= -10 billion * 2.67
= -$26.7 billion
Aggregate demand will shift left by $26.7 billion to show that aggregate demand is decreasing.
Answer:
d). The lessee must increase the present value of the minimum lease payments by the present value of the option price.
Explanation:
The bargain purchase option refers to the clause mention in a lease contract or agreement which provides the lessee 
or buy a leased asset from a person at the end of the 
at a price which is substantially below its 
.
In bargain purchase option, the present value of a 
can be increased by bargain purchase option. So the lessee must 
the present value of by the present value of the 
This is the impact of the bargain purchase option on the present value of .
Thus, the correct option is (d).
Answer:
Explanation:
a. The computation of the ending inventory is shown below:
Inventory Quantity Cost NRV LCM Total inventory
(1) (2) (1 × 2)
Unit A 14 $38 $40 $38 $532
Unit B 22 $42 $39 $39 $858
Unit C 16 $27 $31 $27 $432
Unit D 19 $18 $17 $17 $323
Total $2,145
And total cost = Unit A × cost + Unit A × cost + Unit A × cost + Unit A × cost
= 14 × $38 + 22 × $42 + 16 × $27 + 19 × $18
= $532 + $924 + $432 + $342
= $2,230
b. The journal entry is shown below:
Income summary A/c Dr $85 ($2,230 - $2,145)
To Inventory A/c $85
(Being inventory is adjusted)
The waiting time at which 10 percent of the people would continue to hold is given as 2.3
<h3>How to solve for the waiting time</h3>
We have to solve for X ~ Exponential(λ).
then E(X) = 1/λ = 3,
= 0.3333
Remember that the cumulative distribution function of X is F(x) = 1 - e^(-λx). ; x is equal to the time in over case
For 10 percent of the people we would have a probability of
10/100 = 0.1
we are to find
P(X ≤ t)
= 1 - e^(0.3333)(t) = 0.1
Our concern is the value of t
Then we take the like terms
1-0.1 = e^(0.3333)(t)
1/0.9 = e^(0.3333)(t)
t = 3 * ln(1/0.9)
= 0.3157
If the marginal benefit is greater than the marginal cost
The marginal benefit is the amount of satisfaction that you receive when you consume an additional goods or service, meanwhile the marginal cost is the amount of sacrifice that you need to do in order to get that additional good or service.
to put it simply, You better off consuming that additional product if the satisfaction that you get is worth the sacrifice that you make
