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.
Answer:
C). Compare actual controllable costs with flexible budget data.
Explanation:
The Cost center is very crucial to be determined by an organization as it indirectly bestows its profitability. It is usually calculated by comparing the actual cost generated by the department to the expectations as per the budgeted cost. Thus, the most constructive method to evaluate a cost center would be the 'comparison between the actual controllable costs and the flexible budget data' as it helps in assessing the actual expense incurred during the year and whether it is lesser or greater than the cost estimated in the budget. Hence, <u>option C</u> is the correct answer.
Answer:
$1,008.18
Explanation:
Using a financial calculator, you can calculate the price of this bond with the following inputs;
Maturity of the bond; N= 3
Face value ; FV = 1000
Annual coupon payment; PMT = 7% *1000 = 70
Yield to maturity ; I/Y = 6.69%
then compute the Price; CPT PV = 1,008.182
Therefore, the current price is $1,008.18
