Answer:
a $1 rise in government spending will raise both total spending and Real GDP (assuming prices are constant) by $2.70.
Explanation:
The tax multiplier is generally used to show the multiple at which there is either a decrease or an increase in gross domestic product when there is either an increase or decrease in tax. Therefore, if the tax multiplier is equivalent to '$n' and assuming there is no change in price, there will be an increase of '$n' on the GDP and total spending for every dollar increase in the spending of government.
Answer:
Kaelyn's child and dependent care credit is:
$2,100.
Explanation:
a) Data and Calculations:
Going rate for child care for twins = $6,460
Maximum allowed = $6,000
Kaelyn's AGI for the year = $37,600
Percentage of child and dependent care credit = 35% of the allowed maximum for two children
b) The maximum qualified child and dependent care expense is $6,000 ($3,000 each) that Kaelyn can claim for the twins. Therefore, her child and dependent care credit is 35% of $6,000, which equals $2,100.
Answer:
The firm's ability to respond and adapt to financial adversity and unexpected needs and opportunities.
Explanation:
Financial adversity refers to difficulty is obtaining fund to take opportunities and meet needs including debt settlement.
The statement of cash flows shows how much cash flows and out of an organisation and how regular and stable they are. It therefore allows user to evaluate financial flexibility of the organisation.
Answer:
$14,118
Explanation:
The computation of the present value is shown below:
Years Annual cash flows Discounting factor @5.6% Present value
1 $3,000.00 0.946969697 $2,840.91
2 $5,000.00 0.896751607 $4,483.76
3 $8,000.00 0.8491965975 $6,793.57
Total $14,118.24
The discount factor is computed below
= 1 ÷ (1 + rate)^years
like for year 1
= 1 ÷ (1 + 0.056)^1