Answer:
$50 billion
Explanation:
The net effect on aggregate demand of the additional investment spending will be derived by multiplying the increased spending by the Multiplier.
Where MPC is the marginal propensity to consumer, and
MPS, the marginal propensity to save.
Therefore the multiplier = 
= 2.5
Accordingly, the increase in aggregate demand as a result of the increase in the investment
= 2.5 * $20 billion
= $50 billion
Answer:
The correct answer is letter "A": increased expenditures on education.
Explanation:
Total Factor Productivity (<em>TFP</em>) measures the total production of a region by dividing the total amount of output by the weighted average of inputs such as labor and capital. It represents growth in real output as a result of changes in labor and capital. Under such a scenario, <em>changes in the expenditures for education would change the total factor of production since it has a direct impact on labor quality. The higher the expenses in education, the higher the quality of labor.</em>
I am a right outside linebacker blitzing off the edge
Answer:
Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:
a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase due to the 30% increase in sales. This result will be different with an increase by a similar margin in the Cost of Goods Sold.
b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because this increase also increased the operating and administrative expense (depreciation), even though Sales and Cost of Goods Sold remained constant.
Explanation:
The net earnings to sales is an expression of the ratio of the net income to the sales revenue. The net earnings result after deducting all costs from sales revenue. The net earnings to total book assets are the same expression as the Return on Assets.
Answer:
C. $190,000
Explanation:
As per the given question the solution of Income reported on Income statement is provided below:-
here, we ill find first share in equity income and depreciation expenses on undervalue equipment to reach the i
ncome reported on Income statement
Share in equity income = Net income × Interest
= $500,000 × 40%
= $200,000
Depreciation expenses on undervalue equipment = undervaluation ÷ Number of years × Interest
= $250,000 ÷ 10 × 40%
= $10,000
Income reported on Income statement = Share in equity income -Depreciation expenses on undervalue equipment
= $200,000 - $10,000
= $190,000
