Answer:
The correct answer is B: $4,300
Explanation:
Giving the following information:
Howell Corporation purchased a new machine costing $27,600 on January 1, 2017. The machine is expected to have a $1,800 salvage value at the end of its useful life of six years.
Depreciation= (purchase value - salvage value)/ useful life
Depreciation= (27600 - 1800)/6= 4300
Explanation:
Fiscal policy can be defined as the use of government spending and taxation to affect the economic variables such as inflation, unemployment, aggregate demand, etc.
The following measures are example of fiscal policy:
- An increase in federal income tax rates.
- The federal estate tax is repealed.
- An increase in military spending
- The federal government builds a high-speed train that connects Los Angeles and Las Vegas.
I think B is the answer. The manager.
Answer:
a. The money multiplier is 5.
b. The Total money supply will increase by $250 million.
Explanation:
According to the given data we have the following:
Increase in amount of reserves by Fed = $100 million
Increase in money supply = $500 million
Therefore to Calculate the Money multiplier we have to use the following equation:
Increase in money supply = Increase in reserves×Money multiplier
So, Money multiplier = Increase in money supply/Increase in reserves
= $500 million/$100 million
= 5
a. The money multiplier is 5.
If there is anIncrease in amount of reserves by Fed = $50 million and the Money multiplier = 5
, therefore to Calculate increase in money supply we calculate the following:
Increase in money supply = Increase in amount of reserves by Fed * Money multiplier
= $50 million
= $250 million
b. The Total money supply will increase by $250 million.