Answer:
The answer is option (b) $60.75
Explanation:
Solution
Given that
A certain economy, Income is =$100
Consumer spending is =$60
The value of multiplier is =4
Now we need to know when the income is $101, consumer spending, the customer spending will be what?
Now,
Multiplier (k)= 1/1-MPC (marginal propensity to consume)
4=1/1-MPC
Thus
MPC= 1-1/4
MPC=3/4
MPC=.75
So,
MPC= Change in consumption/change in income.
.75=Change in C/101-100
Change in C=.75*1
Change in C=.75
Hence
The new consumption =60+.75=60.75
Therefore, when the income is $101, the consumer spending is $60.75
Answer:
False
Explanation:
Locus of control is the believe that external forces have control over the outcome of events in their lives. Internal locus of control is a believe that one can control one's life that is, the effect of external forces are primarily from their own actions while external locus of control is a believe that one's life is controlled by external forces or factors which one cannot influence that is, chance or fate controls their lives.
She is demonstrated an external locus of control by letting her friends' opinions control her actions, and then blaming them for her decision.
I believe the correct answer from the choices listed above is option C. Regarding increasing productivity, factor mobility is i<span>mportant in that it helps to reallocate resources in a dynamic economy. Hope this answers the question. Have a nice day.</span>
Answer:
Explanation:
Operating activities : It includes all activities related to the changes in the working capital or changes in the current assets and current liabilities.
The increase in current liabilities increase the cash and decrease in current liabilities decrease the cash, so the adjustment is made accordingly. But it is opposite with the current assets.
The Net cash in operating activities under indirect method is shown below:
= Net income + Depreciation expense - decrease in accounts payable + decrease in inventory - increase in accounts receivable
= $65,000 + $19,000 - $3,500 + $4,000 - $6,500
= $78,000
The other effect like increase in bond payable, sale of common stock for cash is classified under financing activities. Thus, it is not considered in computation part.
Hence, the Net cash in operating activities under indirect method is $78,000
