ABC, Inc. a contracting business has purchased a truck costing $50,000 with a depreciable life of 5 years. Using

If the tax multiplier is minus1.5 and a $200 billion tax increase is implemented, what is the change in gdp, holding all else

3241004551 [841]

Tax multiplier = -1.5
Tax increase = $200 billion

Therefore, since the multiplier is a negative value, the GDP must have gone down.

GDP = Tax increase/Tax multiplier = 200/-1.5 = $133.33 billion decrease.
Then, the correct answer is c.

6 0

2 years ago

West Corp. issued 20-year bonds two years ago at a coupon rate of 8.3 percent. The bonds make semiannual payments. If these bond

lora16 [44]

Answer:

Yield to Maturity (YTM) is 7.94 %.

Explanation:

Yield to Maturity (YTM) refers to internal rate of return that bond holder will earn if he purchased the bond today at the current market price and held it till maturity of the bond.

Yield to Maturity of the the bond = [Coupon payment+ (Future value of bond - Present value of bond / no. of Periods)] / [(Future value of bond + Present value of bond)/2] ---- (a)

Bond maturity period = 20 years

Coupon rate = 8.3 %

Par Value = 1000

No. of periods = 2 x 20 = 40 (semi- annual)

Coupon payment = 8.3 % x 1000 = 83 = 83/2 = 41.5 (Semi-annual)

Present value of bond = 104 percent of Par value = 104

Future value of bond = 1000

YTM = ?

Putting the values in equation (a),

Semi annual YTM = [41.5 + (1000-1040 / 40)] / [(1000 + 1040)/2]

Semi annual YTM = [41.5 + (-40/40) ] / [(1040)/2]

Semi annual YTM= [41.5 - 1] / 1020

Semi annualv YTM = 40.5 / 1020 = 0.0397

Hence, Annual yield to maturity = 0.0397 x 2 = 0.0794 or 7.94 %.

6 0

3 years ago

_____ refer(s) to fiscal policy that is caused by the deliberate action by policy makers rather than rules. Please choose the co

Inessa05 [86]

Answer: Discretionary fiscal policy

Explanation: Discretionary fiscal policy is a tool of fiscal policy used by the government to expand or shrink the economy as per the need. While performing such policy the government changes the level of tax collection or the amount of expenditure done on the economy.

It is a deliberate action by the policy makers and do not automatically accelerates while during inflation or deflation.

5 0

3 years ago

To better facilitate an understanding of layout issues, Arnold Palmer Hospital studies using A. queuing theory. B. transportati

klio [65]

To better facilitate an understanding of layout issues, Arnold Palmer Hospital studies using (A) queuing theory.

Explanation:

Queuing theory also known as the "queuing theory" it is used to examine the various component in waiting line that needs to be served.

The queuing theory refers to the various component like the arrival process,the service process,number of computerized system, number of servers used and the number of people in queue (i.e customers)

The various applications of the queuing theory include -traffic management,(vehicles management, two or four wheeler), scheduling patients in government hospitals, jobs that are done on machines, computer programs), and facility designs of supermarkets.

Thus,In a hospital settings the layout issues can be dealt by understanding the queuing theory.

3 0

2 years ago

After an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its newaccounting basis. W

Mandarinka [93]

Answer:

A, it is prohibited

Explanation:

Under the U.S GAAP, subsequent reversal of a previously recognised intangible asset impairment loss is prohibited with the exception that the intangible asset is held up for the purpose of sale.

Cheers.

3 0

3 years ago