Answer:
Multiplier effect in the 4th round = 3.58
Explanation:
A change in aggregate demand can create a much greater impact in the equilibrium national income. This is known as the multiplier effect. This occurs when injections of new demand for goods and services into the circular flow of income creates further rounds of spending. For example, if the government spending was on building new affordable houses then the need for housing materials will create demand for wood, cement and other housing supplies. Thus, these businesses will see a rise in sales. Whilst they benefit through profits, their employees would benefit from wages and salaries. As their income rises, they will spend it in the economy, and so will the businesses from their profits. This additional rounds of spending is the multiplier effect.
If a 100 increase creates 33 for the second round, it is 33% (33/100 x 100) i.e. 100 x 33% = 33
This is proven since 33 x 33% = 10.89 in the third round.
Hence, the multiplier effect in the forth round = 10.89 x 33% = 3.58
<span>This reduction in taxes serves as a "direct" incentive to buy a house.
</span>There are direct incentives and indirect incentives, the difference between them are;Direct incentives are generally simple to perceive/aftereffect of an activity – Firm brings down the gas cost to pull in more clients and Indirect incentives are the hidden outcome of the move made – Pollution is a result of the expanded amount requested.
Answer:
June 10
Dr Inventory $7,100
Cr Accounts payable $7,100
June 11
Dr Inventory $350
Cr Cash $350
June 12
Dr Accounts payable $600
Cr Inventory $600
June 19
Dr Account payable $6,500
Cr Cash $6,240
Cr Inventory $260
Explanation:
Preparation of a separate journal entries for each transaction on the books of Blossom Company.
Books of Blossom Company
June 10
Dr Inventory $7,100
Cr Accounts payable $7,100
June 11
Dr Inventory $350
Cr Cash $350
June 12
Dr Accounts payable $600
Cr Inventory $600
June 19
Dr Account payable $6,500
($7,100-$600)
Cr Cash $6,240
($6,500-$260)
Cr Inventory $260
(4%*$6,500)
Based on the scenario above, it is suggested that Girard
practices the management by walking around. The MBWA or the management by
walking around is a style where the management uses this with their managers
wandering in the workplaces to check their employees.
Answer and Explanation:
The weighted-average accumulated expenditure method will be used to compute the interest amount to be capitalized for a qualifying asset. Then the expenditure incurred during a particular month shall be multiplied by that month's outstanding and the sum is later divided over the total months in a given period.
(Check the attachment below for the computation of Whispering’s weighted-average accumulated expenditures for interest capitalization purposes.)
Therefore, Whispering's weighted-average accumulated expenditures for interest capitalization purposes is $2,334,000.
