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MArishka [77]
2 years ago
5

Suppose that an economy is currently experiencing a Contractionary Gap due to a recession. The government decides to help the ec

onomy by increasing government spending on roadways and infrastructure projects. It increases government spending by $50 million. If the MPC is 0.75, by now much will Real GDP demanded change?
Business
1 answer:
aliya0001 [1]2 years ago
8 0

Answer:

If the MPC is 0.75 the multiplier will K = 1 / 1 - MPC = 1 / 0.25 = 4.

As the multiplier is 4, any increase in the government will lead to a 4 fold increase in the GDP, here, the government has increase the expenditure by $50 million then total GDP will increase by $200 million.

Explanation:

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MC Qu. 120 Dallas Company uses a job order... Dallas Company uses a job order costing system. The company's executives estimated
SVETLANKA909090 [29]

Answer:

$6.91 per direct labor hour

Explanation:

Given that,

Estimated direct labor = $2,640,000

Estimated direct labor hours = 220,000

Factory overhead = $1,520,000

Actual overhead costs = $1,220,000

Therefore,

Predetermined overhead rate:

= Estimated overhead cost ÷ Estimated direct labor hours

= $1,520,000 ÷ 220,000 hours

= $6.91 per direct labor hour

4 0
2 years ago
One year ago, JK Mfg. deposited $12,000 in an investment account for the purpose of buying new equipment four years from today.
Lyrx [107]

Answer:

Total FV= $46,008.31

Explanation:

Giving the following information:

Deposit 1= $12,000

Deposit 2= $15,000

Deposit 3= $10,000

Interest rate= 0.055

<u>To calculate the future value, we need to use the following formula on each deposit:</u>

FV= PV*(1+i)^n

FV1= 12,000*(1.055^5)= 15,683.53

FV2= 15,000*(1.055^4)= 18,582.37

FV3= 10,000*(1.055^3)= 11,742.41

Total FV= $46,008.31

4 0
3 years ago
Assume J. K. Lumber increases its operating efficiency such that costs decrease while sales remain constant. As a result, given
Mars2501 [29]

Answer:

D) return on equity will increase.

Explanation: Return on equity is a financial term that explains the net income of a business venture. There are several ways through which the return on equity can be improved or increased in business.

(1) Reduction in the cost of operations or production of goods and services

(2) increase in the price of the product etc.

If the cost of producing a given Quantity of goods is reduced with sales remaining constant,THE RETURN ON EQUITY WILL INCREASE AS A RESULT OF THE INCREASE IN NET INCOME DUE TO REDUCED COST OF OPERATIONS OR PRODUCTION OF GOODS.

7 0
2 years ago
Read 2 more answers
A company is considering the purchase of a new machine for $55,000. Management predicts that the machine can produce sales of $1
Ymorist [56]

Answer:

5.32 years

Explanation:

Particulars                 Amount

Sales                           $16,700  

Less: Expenses          <u>$7,300</u>

Profit before tax         $9,400  

Less: income tax        <u>$3,760</u>

Net income                 $5,640

Add: Depreciation      <u>$4,700</u>

Annual Cash flow      <u>$10,340</u>

So, the payback period for the new machine = Total investment/Annual cash flow = $55,000 / $10,340 = 5.319148936170213 = 5.32 years

6 0
2 years ago
Green Living Construction Company installs solar panels in large newly constructed buildings. The company employs several expert
monitta

Answer:

The correct answer is B

Explanation:

Green Living Construction Company installs solar panels in large newly constructed buildings. The company employs several expert installers who work on a full-time basis. Although the installers work every day, the company pays them at the end of the month, for the previous month's work. Employee salaries are recorded as current liabilitieson Green Living's balance sheet.

good luck ❤

7 0
3 years ago
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