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natta225 [31]
2 years ago
8

In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal

propensity to consume is 0.6, investment will: Group of answer choices rise by $100 billion. not change. rise by $40 billion. rise by $60 billion.
Business
1 answer:
Zigmanuir [339]2 years ago
3 0

Answer:

rise by $40 billion

Explanation:

Calculation to determine what the investment will be

Investment=$100 billion*(100%-60%)

=$100 billion*40%

=$40 billion

Therefore the investment will rise by $40 billion

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Answer:

Direct labor rate variance= $594 unfavorable

Explanation:

Giving the following information:

The standard direct labor cost per hour is $7.20.

During August, Zanny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708.

<u>To calculate the direct labor rate variance, we need to use the following formula:</u>

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 48,078/6,600= $7.29

Direct labor rate variance= (7.20 - 7.29)*6,600

Direct labor rate variance= $594 unfavorable

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5 0
3 years ago
A person has $4,000 in medical expenses and an adjusted gross income of $32,000. If taxpayers are allowed to deduct the amount o
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Answer:

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Explanation:

32,000 x .075 = 2400, and since 4000 exceeds 2400 by $1600, $1600 will be deducted

8 0
2 years ago
Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. Equipment
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Answer:

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On August 1, 2018, Trico Technologies, an aeronautic electronics company, borrows $20.0 million cash to expand operations. The l
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Answer:

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Loan Receivable      $20,000,000

Cash                                                    $20,000,000  

Interest Receivable     $666,666

Interest Income                                     $666,666        

             

Explanation:

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