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7nadin3 [17]
2 years ago
15

During a pandemic, an economy goes into a recession due to a decrease in aggregate demand. Assume the government creates a progr

am to help stabilize the economy by increasing expenditures by $700 billion. How much spending would occur during the third round of spending if the marginal propensity to consume (MPC) was 0.6 in the economy
Business
1 answer:
den301095 [7]2 years ago
7 0

The spending that would occur during the third round of spending if the marginal propensity to consume (MPC) was 0.6 will be $420 billion.

  • Increase in expenditure = $700 billion.
  • Marginal propensity to consume = 0.6

The amount of spending based on the information given will be:

= 0.6 × $700 billion

= $420 billion.

Therefore, the correct option is $420 billion.

Read related link on:

brainly.com/question/17012549

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romanna [79]

Based on the scenario above, it is suggested that Girard practices the management by walking around. The MBWA or the management by walking around is a style where the management uses this with their managers wandering in the workplaces to check their employees.

6 0
3 years ago
Garla Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $145,600 Allowance for
Bond [772]

Answer:

The following journal entries apply:

a) Debit Bad debt expense                                    $33,692.4  

   Credit Allowance for doubtful accounts           $33,692.4

b) Debit Bad debt expense                                    $38,612.4  

   Credit Allowance for doubtful accounts            $38,612.4

Explanation:

All the sales revenue are on credit to the tune of $834,000, however, there was sales return and allowance of $53,540, which has to be deducted from credit sales to arrive at the net credit sales of $780,460. This amount would be added to the accounts receivable of $145,600 to arrive at the total accounts receivable of $926,060.

a) 4% of $926,060 is $37,042.4. With credit balance of $3,350 in allowance for doubtful accounts, bad debt expense (addition) is $33,692.4  ($37,042.4 - $3,350).

b) 4% of $926,060 is $37,042.4 and there is a debit balance of $1,570 in allowance for doubtful accounts, bad debt expense (to reinstate allowance account to $37,042.4) is $38,612.4 ($37,042.4 + $1,570).

8 0
3 years ago
The nominal interest rate is 6 percent and the real interest rate is 2.5 percent. What is the inflation rate?
Vlad1618 [11]

Answer:

3.5 percent

Explanation:

6 0
3 years ago
Corporation M has $40,000 of current earnings and profits and $10,000 of accumulated earnings and profit. During the year Corpor
zzz [600]

Answer:

$40,000

Explanation:

Calculation to determine What amount of capital gain income will N recognize related to this distribution

Using this formula

N Capital gain income=N stock basis- M distribution

Let plug in the formula

N Capital gain income=$100,000-$60,000

N Capital gain income=$40,000

Therefore The amount of capital gain income that N will recognize related to this distribution is $40,000

6 0
3 years ago
Interruptions such as answering the telephone and checking e-mails fall under which of the following quadrants in the time manag
Irina18 [472]

Answer: Quadrant 3

Explanation:

Everything one does in life can be classified by its importance and urgency. This led to the creation of the four quadrants of time management which are Quadrant 1, Quadrant 2, Quadrant 3 and Quadrant 4.

Quadrant One: Important and Urgent:

This segment involves the tasks one has placed the highest priority on. The jobs involved here are the ones that cannot be postponed and must be immediately attended to. Examples of items here include a medical emergency, fast-approaching deadline for a job and a family crisis.

Quadrant Two: Important But Not Urgent:

This segment involves planning and strategizing and are usually for medium and long-term. Items here are things that can be solved little bit at a time. These jobs requires ones attention but it's not really a matter of urgency.

This segment can be used for activities that contributes to an individual's overall wellbeing. Items included are scheduling vacation time, exercise, training courses and professional development.

Quadrant Three: Urgent But Not Important

Items in Quadrant Three are seen as distractions or interruptions which gets in ones way of completing jobs in Quadrants One and Two. They seem urgent but are not really vital like the ringing of your phone.

Quadrant Four: Not Urgent and Not Important

These items are bad and unproductive habits that are neither vital nor urgent and gets in ones way of accomplishing tasks. Items here include watching television, surfing webs aimlessly.

From each quadrants explained, we can deduce that the answer to the question is quadrant 3.

7 0
3 years ago
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