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Wewaii [24]
3 years ago
5

If equilibrium GDP is $250 billion less than the targeted level of GDP, and the Multiplier Model has an mpe of 0.75, then we can

predict that the targeted level of GDP can be attained by_______ government spending______billion.
a. decreasing; $62.5
b. increasing; $95.5
c. increasing; $62.5
d. increasing; $250
Business
1 answer:
Olegator [25]3 years ago
3 0

Answer:

c. increasing; $62.5

Explanation:

The computation is shown below;

As we know that

Multiplier = 1 ÷ 1 - MPC

= 1 ÷ 1 - 0.75

= 1 ÷ 0.25

= 4

Now if the equilibrium GDP is $250 billion less than the expected level of GDP

So, the government spending would be increased by

= $250 billion ÷ 4

= $62.5

Hence, the correct option is c.

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accounts receivable increased by $1,000, inventory increased by $5,000, accounts payable decreased by $3,000, and accumulated de
Vitek1552 [10]

Answer:

- $9,000

Explanation:

Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted

So, the cash effect would be

= - Increase in accounts receivable - increase in inventory - decrease in account payable

= - $1,000 - $5,000 - $3,000

= - $9,000

The accumulated depreciation is not a part of the working capital. Hence, ignored it

3 0
4 years ago
What is the relationship between the business and the supplier??​
makkiz [27]

This is a very broad question.

There are lots of relationships between business and supplier, but basically the supplier provides the resources for the business to perform its business function.

8 0
3 years ago
A chocolate manufacturer advertises heavily during Christmas with an ad that shows only a picture of red, green, and silver wrap
nikdorinn [45]

Answer: Reminder

Explanation:

 The reminder advertising is one of the type of marketing advertisement strategy that is used for reminding about the various types of products and the services in the market and this strategy is also used for introducing the new features and characteristics in the existing products.

The main objective of the reminder advertisement is that it basically using the promoting or the advertising strategy for targeting the customers or users about the goods and the services ion the market.

According to the given scenario, a chocolate manufacturer is basically using the reminder advertising during the Christmas. Therefore, reminder advertising is the correct answer.            

3 0
4 years ago
Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its befor
Arturiano [62]

Answer:

Cost of common equity is 15.7%  and WACC is 7.2%

Explanation:

D1 is  

D1= 2.25 (1+0.05)

The cost of common equity is  

Rs = 2.36/ 22.00 + 5% =0.157= 15.7%

The cost of common equity is weighted average cost of capital (WACC)  

WACC = (0.35) * (0.08) (1- 0.40) + 0 preferred stock+ (0.35) * (0.157)

WACC = 0.03 *0.6 + 0 + 0.054

WACC = 0.018 + 0.054

WACC = 7.2%

4 0
3 years ago
Medicare is a national health insurance program that _____.
xeze [42]
<span>C. covers people over 65 and others with certain disabilities.
Hope that I helped :)</span>
5 0
4 years ago
Read 2 more answers
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