Answer:
The increase in GDP is $250
Explanation:
The increase in investment spending = $100
Marginal propensity to consume = 0.6
Now we have to find an increase in the GDP after absorbing the $100.
Therefore, we need to find the multiplier by using the marginal propensity to consume.
Multiplier = 1 / (1-MPC)
Multiplier = 1/( 1- 0.6)
Multiplier = 2.5
The increase in GDP = increase in investment spending × Multiplier
The increase in GDP = 100 × 2.5 = $250
Answer:
(b) perfect competition in these industries
Explanation:
If some industries exhibit internal economies of scale, we should not expect to see perfect competition in these industries because each firm behaves like a perfectly competitive firm and can thus be called a price taker. But when economies of scale are there because the firm itself increases its scale of production (i.e. it realizes internal economies of scale) the market structure becomes imperfectly competitive.
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
The journal entry is shown below:
Explanation:
The journal entry which is to be recorded on the date of payment is as:
Cash A/c...........................................................Dr $2,009
Sales Discount A/c.........................................Dr $41
Accounts Receivable- Hubbard Incorporated A/c..........Cr $2,050
As the goods sold by company, so they received cash and any increase in assets account is debited. Therefore, the cash account is debited. And the company also offered discount which is also debited and the account of accounts receivable is credited.
Working Note:
Amount of cash received = (Sold merchandise amount - Return goods amount) - 2% on amount
= ($2,400 - $350) - 2% on amount
= $2,050 - 2% × $2,050
= $2,050 - 41
= $2,009
Answer:
$884
Explanation:
A convertible bond can be defined as bond which are in form of a fixed-income corporate debt security which help to yields interest payments. Although this CONVERTIBLE BOND can as well be converted into a number of equity shares due to the fact that the conversion from the bond to stock can sometimes be done at a specific times during the bond's life because it is said to usually be at discretion of the bondholder.
The current price of the issuing company's stock is $26 × The conversion ratio is 34 shares
=$884
Therefore The bond's market conversion value is $884
