Answer:
Left by $400; Left by $300
Explanation:
Given that,
Marginal propensity to consume, MPC = 0.75
Government spending multiplier = 4
(a) If the government decreases its purchases by $100 million, then the magnitude of the shift in aggregate demand curve is calculated by multiplying the change in government spending to the government spending multiplier.
Aggregate demand curve shift left by
= Change in government spending × Government spending multiplier
= $100 × 4
= $400 million
(b) If the government increases income taxes by $100 million, then the magnitude of the shift in aggregate demand curve is calculated by multiplying the change in taxes to the tax multiplier.
Tax multiplier:
= MPC ÷ (1 - MPC)
= 0.75 ÷ (1 - 0.75)
= 0.75 ÷ 0.25
= 3
Aggregate demand curve shift left by
= Change in taxes × Tax multiplier
= $100 × 3
= $300 million
Answer: $44,800
Explanation:
Given that,
Investment = $41,500
cash and equipment = $19,500
Office supplies purchases on credit = $220
Paid cash for the receptionist's salary = $2700
Cash received from selling custom frame service = $6000
Framing services = $350
Ending cash flow = Capital brought in by Larry Bar - Paid cash for the receptionist's salary + Cash received from selling custom frame service
= $41,500 - $2700 + $6000
= $44,800
Answer: (1) Creating business alliances with business partner
Explanation:
The MIS is stand for the management information system and it is one of the type of computerized database system which is basically used to store the financial based information in an organization.
The consultative function is basically helps in producing the regular reports or information of the company's operation and also manage the system integration such as intranets and internet.
The main objective of the consultative function of the management information system department is to initiating the various types of business strategy and the business alliances with the business partner in an organization.
Therefore, Option (1) is correct answer.
