Answer:
The total macroeconomic impact of the fiscal stimulus is <u>$375 billion</u>.
Explanation:
In macroeconomics, a sending multiplier refers to a propositional factor that has a primary function of measuring the extent of the effect of a change in gross domestic product (GDP) as a result of a change in expenditure.
In order to determine the total macroeconomic impact of the fiscal stimulus, we just need to obtain the product of the spending and multiplier as follows:
Total macroeconomic impact = Spending * spending multiplier ............ (1)
Where;
Spending = $150 billion
Spending multiplier = 2.5
Substituting the values into equation (1), we have:
Total macroeconomic impact = $150 billion * 2.5 = $375 billion
Therefore, the total macroeconomic impact of the fiscal stimulus is <u>$375 billion</u>.
Answer:
Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. ... The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service.
IN SIMPLE WORDS:
A utility is an important service such as water, electricity, or gas that is provided for everyone, and that everyone pays for. ... public utilities such as gas, electricity and phones.
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Answer:
$1,456,440
Explanation:
Given that,
Budgeted production = 45,800
Direct labor hours per unit = 1.5
Cost of cutting and sewing labor = $21.20 per hour
Total direct labor hours required:
= Budgeted production × Direct labor hours per unit
= 45,800 × 1.5
= 68,700
Total direct labor cost:
= Total direct labor hours required × cost per hour
= 68,700 × $21.20
= $1,456,440
Answer:
Land, Equipment, and Inventory will be restated on the closing date i.e. December 31, 2020. The rate of the currency exchange from local to foreign currency for equipment is on the day of purchase which is February 1, 2020.
Explanation:
1-Balance sheet items are restated on the closing date.
2-P & L items are restated on the transaction date.
As the items Land, Equipment and Inventory are all the balance sheet items, thus they will be stated on the closing date i.e. December 31, 2020.
Furthermore, the functional currency is foreign currency. Since the equipment is purchased in the domestic currency it has to be translated into the foreign currency at the rate as on the date of purchase i.e; February 1, 2020.
Answer:
$2,033
Explanation:
The computation of the terminal value at the end of the year 2 is shown below:
= {Free cash flow of the firm × (1 + growth rate) × (1 + growth rate) + (1+ growth rate)} ÷ (WACC - growth rate)
= {($80 million × (1 + 0.10) × (1 + 0.10) × (1 + 0.05)} ÷ (10% - 5)
= $101.64 ÷ 0.05
= $2,033
We simply applied the above formula so that the Terminal value could arrive
