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3 years ago

The Keynesian analysis of

Business

1 answer:

Annette [7]3 years ago

5 0

Answer:

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

Explanation:

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

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Match the items below by entering the appropriate code letter in the space provided. Plant assets Book value Salvage value Strai

disa [49]

Answer:

1. Small expenditures which primarily benefit the current period. REVENUE EXPENDITURES

2. Cost less accumulated depreciation. BOOK VALUE

3. An accelerated depreciation method used for financial statement purposes. DOUBLE DECLINING BALANCE METHOD

4. Tangible resources that are used in operations and are not intended for resale. PLANT ASSETS

5. Equal amount of depreciation each period. STRAIGHT LINE METHOD

6. Expected cash value of the asset at the end of its useful life. SALVAGE VALUE

7. Process of allocating the cost of equipment over its service life. DEPRECIATION

8. Material expenditures that increase an asset's operating efficiency, productive capacity, or useful life CAPITAL EXPENDITURES

9. An accelerated depreciation method used for tax purposes. MACRS

10. Useful life is expressed in terms of units of production or expected use. UNITS OF ACTIVITY METHOD

Explanation:

7 0

3 years ago

Buchholz Corporation follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restri

omeli [17]

Answer:

6.56%

Explanation:

1. Restricted policy where current assets are 15% of sales.

Sales = $400,000

Current assets = 0.15 * 400000 = $60,000

Total assets = Fix assets + Current assets = 100,000 + 60,000 = $160,000

Debt accounts for 50% of capital structure. Therefore 50% assets will be financed through debt.

Debt = 0.5 *160,000 = $80,000

Equity = Assets - Debt =$80,000

Interest on Debt = 10% * $80,000 = $8,000

EBIT = $35,000

Profit before tax = 35000 - 8000 = 27000

Tax = 25% of 27,000 = $6,750

PAT = $27,000-$6,750

= $20,250

ROE = 20,250/ 80000 = 25.31%

2. Calculations for relaxed policy where current assets are 25% of sales.

Sales = $400,000

Current assets = 0.25 * 400000 = $100,000

Total assets = Fix assets + Current assets = 100,000 + 100,000 = $200,000

Debt accounts for 50% of capital structure. Therefore 50% assets will be financed through debt.

Debt = 0.5 *200,000 = $100,000

Equity = Assets - Debt =$100,000

Interest on Debt = 10% * $100,000 = $10,000

EBIT = $35,000

Profit before tax = 35000 - 10000 = 25000

Tax = 25% of 25,000 = $6,250

PAT = 25000 - 6,250 = $18,750

ROE = 18750/ 100000 = 18.75%

The difference between the 2 ROEs = 25.31% - 18.75% = 6.56%

Therefore the difference in the projected ROEs between the restricted and relaxed policies is 6.56%

3 0

3 years ago

Suppose that the MPC is 0.8 and that $18 trillion of real GDP is currently being demanded. The government wants to increase real

Bingel [31]

Answer: $200 billion

Explanation:

First find the government spending multiplier:

Multiplier = 1 / (1 - MPC)

= 1 / (1 - 0.8)

= 5

The government wants to increase the real GDP to $19 trillion from $18 trillion which means that they want to increase it by $1 trillion.

In order to increase it by $1 trillion, the amount the government needs to spend is:

Increase in real GDP = Multiplier * Government spending

1 trillion = 5 * Government spending

Government spending = 1 trillion / 5

= $200 billion

4 0

3 years ago

An educational software company wants to compare the effectiveness of teaching about supply and demand curves between computer a

Fiesta28 [93]

Answer:

Yes, this is often an experiment. the corporate assigned students to either the animation or the text, instead of watching post hoc ergo propter hoc data.

Explanation:

The explanatory variables are the pre-test data and therefore the assignment to a given group. The responding variable is that the post-test data.

6 0

3 years ago

Highly Suspect Corp. has current liabilities of $401,000, a quick ratio of 1.50, inventory turnover of 3.70, and a current ratio

Scrat [10]

Answer:

$3,115,770

Explanation:

Given:

Current ratio = 3.60

Current liabilities = $401, 000

Quick ratio = 1.50

Inventory turnover = 3.70

Current ratio is calculated by dividing your current assets by your current liabilities.

$Current\ ratio = \frac{Current\ Assets}{Current\ Liabilities}$

$3.60 = \frac{Current\ Assets}{401, 000}$

Current Assets = 3.60 × 401,000

= $1,443,600

$Quick\ ratio = \frac{(Current\ Assets\ -\ Inventory)}{Current Liabilities}$

$1.50 = \frac{1,443,600\ -\ Inventory}{401,000}$

1.50 × 401,000 = 1,443,600 - Inventory

601,500 = 1,443,600 - Inventory

Inventory = 1,443,600 - 601,500

= $842,100

$Inventory\ Turnover = \frac{Cost\ of\ Goods\ Sold}{Inventory}$

$3.70 = \frac{Cost\ of\ Goods\ Sold}{842,100}$

Cost of Goods Sold = 3.70 × 842,100

= $3,115,770

8 0

3 years ago