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Goryan [66]
3 years ago
11

Assume the MPC is 0.8. Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shif

t the aggregate demand curve to the:__________
a. left by $180 billion.
b. left by $500 billion.
c. right by $180 billion.
d. right by $400 billion.
Business
1 answer:
Eva8 [605]3 years ago
5 0

Answer:

b. left by $500 billion.

Explanation:

Given marginal propensity to consume, MPC = 0.8

Marginal propensity to consume + Marginal  propensity to save = 1

MPC + MPS = 1

0.8 + MPS = 1

MPS = 1-0.8

MPS = 0.2

Now, the government multiplier = 1/MPS

The government multiplier = 1 / 0.2 = 5

Total fall in aggregate demand = Government multiplier × Government purchases

= 5 ×100

= $500

Since there is a fall in spending so the aggregate demand curve will shift leftwards.

Therefore, the correct option is b. left by $500 billion.

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You have just made your first $4,400 contribution to your retirement account. Assume you earn a return of 13 percent per year an
DENIUS [597]

Answer: $152,309.69

Explanation:

You are looking for the future value of this amount in 29 years assuming it will be compounded annually.

Future value = Amount * (1 + rate)^ number of years

= 4,400 * ( 1 + 13%)²⁹

= $152,309.69

4 0
3 years ago
Last year, The Pizza Joint added $6,230 to retained earnings from sales of $104,650. The company had costs of $87,300, dividends
Dmitrij [34]

Answer:

$2,503 = Depreciation Expense

Explanation:

Net profit = $6,230 that is amount added to retained earnings.

Net profit = Sales - Cost - Depreciation - Interest - Taxes - Dividends

Sales = $104,650

Costs = $87,300

Interest = $1,620

Earnings before depreciation and taxes = $104,650 - $87,300 - $1,620 =  $15,730

Earnings after interest depreciation and taxes = $6,230 + $2,500 = Net profit + Dividend = $8,730

Therefore

(15,730 - Depreciation) - (15,730 - Depreciation) \times 34% = $8,730

$15,730 - Depreciation - ($5,348 - 0.34 Dep) = $8,730

$10,382 - 0.66 Depreciation = $8,730

$1,652 = 0.66 Depreciation

$2,503 = Depreciation Expense

7 0
3 years ago
A machine with a cost of $164,000, accumulated depreciation of $102,000, and current year depreciation expense of $25,500 is sol
Gre4nikov [31]

Answer:

$53,600

Explanation:

The computation of the cash flow from investing activities is shown below:

Cash flow from investing activities

Sale value of machinery $53,600

Net cash flow from investing activities $53,600

The current year depreciation expense is to be reported under operating activities and as we know that the investing activities record those activities which are held for purchased and sale of long term assets so the sale value fo machinery is only reported

4 0
3 years ago
Governmental regulations such as the​ ________ Act mandate archiving business documents and relevant internal​ communication, in
Leto [7]

Answer:

B. Sarbanes-Oxley

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The Sarbanes-oxley act also know as Public company accounting reform and investor protection Act and Corporate and Auditing Accountability, Responsibility, and Transparency Act is a US Federal law that cracks down on corporate fraud. The act gave protection to whistleblowers and strengthened the independence and financial literacy of corporate boards.

The Act mandates archiving business documents and relevant internal​ communication, including​ e-mail and instant messages to guard against destruction of evidence to impede a federal investigation.

3 0
3 years ago
Read 2 more answers
Describe at least two non-discretionary expenses that you expect to have at some point in your life.
ad-work [718]

Answer:

Non-Discretionary Expenses means payments made to third parties on account of: (a) mandatory payments of monthly debt service (but not payment of principal or interest at or after maturity) required under Loan Documents evidencing debt of the Venture or any Subsidiaries; (b) Emergency Expenses; (c) other non-

Explanation:

3 0
3 years ago
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