When the economy is growing and people are optimistic, the economy is in a period of

Consider a hypothetical closed economy in which households spend $0.60 of each additional dollar they earn and save the remainin

Liono4ka [1.6K]

Answer: Marginal propensity to consume = $0.60

Spending multiplier = $2.5

Explanation: The MPC can be calculated using following equation :-

$MPC=\frac{change\:in\:consumption}{change\:in\:spending}$

$MPC=\frac{\$0.60}{\$1}$

= 0.60

Similarly, we can calculate spending multiplier as :-

$Spending\:multiplier\:=\:\frac{1}{1-MPC}$

$Spending\:multiplier\:=\:\frac{1}{1-0.60}$

= $2.5

8 0

3 years ago

Your task is to design a rectangular industrial warehouse consisting of three separate spaces of equal size. The wall materials

Nadya [2.5K]

Answer:

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one. Please have a look at the attached photo.

Given:

Cost $71 per linear foot
Budge $34080 for those walls

Let X is the the length

Let Y is the width

From the photo, we can see that

(4X + 6Y)*71 = 34080

<=> (4X + 6Y) = 480

<=> Y = 80 - $\frac{2}{3}$ X

The are of the rectangular industrial warehouse:

A(X) = 3Y*X

<=> A(X) = 3(80 - $\frac{2}{3}$ X )X

<=>A(X) = (240-2X)X = 240X - $2X^{2}$

So A'(X) = 240 - 4X

Let A'(X) = 0, we have:

240 - 4X = 0

<=> X = 60

=> Y =(80 - $\frac{2}{3}$ X ) = 80 - $\frac{2}{3}$ *60 = 40

So the dimension to maximize total area is: 60 in length and 40 in width

5 0

2 years ago

Based upon the following data for a business with a periodic inventory system, determine the cost of merchandise sold for August

mamaluj [8]

Answer:

Cost of merchandise = $235150

Explanation:

Below is the calculations:

Cost of merchandise = Opening inventory - ending inventory + purchases - purchase return - purchase discount + freight

Now plug the value in the above formula:

Cost of merchandise = 96610 - 100530 + 254660 - 13340 - 6320 +4070

Cost of merchandise = $235150

5 0

2 years ago

44000 Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a consta

Minchanka [31]

Answer:

Maximum Dollar Increase = $10079.76

Explanation:

(See attachment for full question)

INCOME STATEMENT

Sales ---------- $67,000

Costs ---------- $43,800

EBIT ------------ $23,200

Taxes (34%) ----$7,888

Net income ------$15,312

BALANCE SHEET

Current Assets ------$31,000

Fixed Assets --------- $118,000

Total ------------------- $149,000

Long-term Debt -----$68,000

Equity ------------------- $81,000

Total ----------------- $149,000

Dividend Payout Ratio = 30%

Plowback Ratio is calculated by: 1 - Dividend Payout Ratio

Plowback Ratio = 1 - 30%

Plowback Ratio = 1 - 30/100

Plowback Ratio = 1 - 0.3

Plowback Ratio = 0.7

Plowback Ratio = 70/100

Plowback Ratio = 70%

Return on Equity (ROE) is calculated by: Net Income/Total Equity

Net Income = $15,132

Total Equity = $81,000

ROE = $15,132/$81,000

ROE = 0.186815

ROE = 18.68%

Calculating Sustainable Growth Rate (SGR)

SGR = (ROE * Plowback Ratio)/(1 - ROE * Plowback)

SGR = (0.186815 * 0.7)/( 1 - 0.186815 * 0.7)

SGR = (0.1307705)(1-0.1307705)

SGR = 0.1307705/0.8692295

SGR = 0.150444157728194

SGR = 0.1504

Max increase = (Sales * SGR)= ($67,000 * 0.1504)

Max Increase = $10079.75856778905

Max Increase = $10079.76

7 0

3 years ago

Over the past several decades: A. international investment has become more one-sided, consisting almost entirely of foreign dire

valentina_108 [34]

Answer:

International investment has become more one-sided, consisting almost entirely of foreign direct investment.

Explanation:

This is because now internationally opportunities are being seized to have a better return on investment , to invest where opportunity cost is better and scope of foreign direct investment includes purchase of assets and shares.

6 0

3 years ago