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Vlad [161]
4 years ago
5

Suppose that an initial $20 billion increase in investment spending expands GDP by $20 billion in the first round of the multipl

ier process. Also assume that GDP and consumption both rise by $18 billion in the second round of the process. Instructions: Round your answers to 1 decimal place. a. What is the MPC in this economy
Business
1 answer:
frez [133]4 years ago
6 0

Answer: 0.9

Explanation:

The marginal propensity to consume (MPC) is calculated by using the formula:

= Change in consumption / Change in income

where,

Change in consumption = $18 billion

Change in income = $20 billion

MPC = Change in consumption / Change in income

= $18 billion / $20 billion

= 0.9

Therefore, MPC is 0.9.

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Linda and Richard are married and file a joint return for 2019. During the year, Linda, who works as an accountant for a nationa
Vesnalui [34]

Answer:

$4,850

Explanation:

the amount of fringe benefits that should be included in Linda and Richard's gross income on their 2019 tax return is $4,850

This was gotten by adding $850 worth of employee discount coupons for hotel rooms and $4,000 in tuition fees during 2019

$4,000 + $850

= $4,850

4 0
4 years ago
Sarah, a fitness enthusiast, watches a tv advertisement for the latest type of fitness equipment. she is impressed by the produc
andreev551 [17]

The answer to the blank space is support arguments. Sarah is persuaded by the arguments presented in the advertisement to buy the latest type of fitness equipment.

Since she herself is a fitness enthusiast, she believes that she might be able to take full advantage of the product by incorporating it to her fitness routine. This is why she is choosing to buy the product as soon as possible, since her decision is supported by her habits and the advertisement.

4 0
4 years ago
Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are l
viktelen [127]

Answer: Only Material costs are relevant

Explanation:

The material cost under alternative X is given as $41000 while under alternative Y is given as $59000.

The processing cost under alternative X is given as $45000 while under alternative Y, the processing cost is given as $45000 as well.

Then, we can deduce that only the materials costs are relevant since the processing costs are thesame.

6 0
3 years ago
_____ involves a type of quantitative research that systematically manipulates one or more variables to determine which variable
8090 [49]
<u>Experimental research</u> <span>involves a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables.
This way, you determine whether your hypothesis was correct, by conducting an experiment to test your thesis. You change things up to see if you were right or wrong during an experimental research.</span>
3 0
4 years ago
Baker Industries’ net income is $24,000, its interest expense is $5,000, and its tax rate is 25%. Its notes payable equals $24,0
Lostsunrise [7]

Answer:

ROE = 9.23%

ROIC = 7.62%

Explanation:

Data:

Net Income NI = $24,000

Interest Expense IE = $5,000

Tax Rate T = 25% = 0.25

Notes Payable NP = $24,000

Long-term debt LTD = $80,000

Common Equity CE = $260,000

Return On Equity ROE = ?

Retrun On Invested Capital ROIC = ?

Earnings Before Taxes EBT = ?

Invested Capital IC = ?

Earnings Before Taxes and Interest EBIT = ?

Calculations:

ROE = \frac{NI}{CE}= \frac{24,000}{260,000}=0.0923 = 9.23%

EBT = \frac{NI}{1-T} = \frac{24,000}{1-0.25} = \frac{24,000}{0.75} = 32,000

EBIT = EBT+IE=32,000 + 5,000=37,000

IC =NP+LTD+CE=24,000+80,000+260,000=364,000

ROIC = \frac{EBIT*(1-T)}{IC} = \frac{37,000*(1-0.25)}{364,000}= \frac{37,000*(0.75)}{364,000}= \frac{27,750}{364,000}= 0.0762=7.62%

Hope this helps!

4 0
3 years ago
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