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2 years ago

How will the increase in government spending financed by borrowing affect national savings? ap macro.

1 answer:

3 0

A lot of issues affect an economy. when government borrowing to finance the economy, an increase in the deficit will lead to high increase in interest .

Higher interest rates will tend to limit or “crowd out” a lot of private investment, and this in turn will limit growth.

<h3>How will the financing of government spending influence national savings?</h3>

Due to an increase in government expenditures, the government finances will have to try and get additional spending via borrowing.

This then will bring about reduction in public savings. When private savings are unaffected, the effect of a reduction in public savings will tend to lower the total levels of national savings.

Learn more about government spending from

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If the stadium made $2,150,000 last year for sports events but only made $1,650,000 this year, what is the percentage decrease i

stellarik [79]

23% decrease.

We can do this by simply dividing 1,650,000 by 2,150,000. That would give us 0.7674. Multiply that by 100 and you have 76.74%.

However, this is the percent amount of how 1,650,000 is out of 2,150,000. So, we need to simply minus this answer by 100 to get 23.26, or 23%.

6 0

3 years ago

Read 2 more answers

You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60% and the stock pays no dividend.

MrMuchimi

Answer:

- 41.67%

Explanation:

For computing the rate of return first we have to compute the initial investment which is shown below:

= Number of shares × per share × initial margin percentage

= 300 shares × $60 per share × 60%

= $10,800

Now Loss on sale of common stock is

= (Selling price - purchase price) × number of shares purchased

= ($45 - $60 ) × 300 shares

= - $4,500

So the rate of return will be:

= Loss ÷ Initial Investment

= - $4,500 ÷ $10,800

= - 41.67%

7 0

3 years ago

d. Suppose that the increase in input price does not occur but, instead, that productivity increases by 25% percent. What would

worty [1.4K]

Answer:

decreased by 20%

Explanation:

Supposed we have input price of $30,000 and it produced an output of 300 units on the first year of operation. The cost per unit on the first year is $100 each ($30,000/300).

On the second year we still have the same input expense of $30,000 but the productivity output increased by 25%. So we have 375 units produced on the second year’s operation. The new cost per unit would be $30,000/375=$80 per unit.

Therefore we conclude that based on the example given, the new unit cost per product decreases by 20%.

$100-80 = $20

$20/$100 = 20%

4 0

4 years ago

Machinery purchased for $69,600 by Tamarisk Co. in 2016 was originally estimated to have a life of 8 years with a salvage value

8_murik_8 [283]

Answer and Explanation:

The journal entries are shown below:

a. No journal entry is required

b. Depreciation expense $4,756

To Accumulated depreciation-Machinery $4,756

(Being depreciation expense is recorded)

Here the depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets

Working

Accumulated depreciation is

= ($69,600 - $4,640 ÷ 8 × 5)

= $40,600

Now Revised depreciation is

= ($69,600 - $40,600 - $5,220) ÷ 5

= $4,756

7 0

3 years ago

Inâ€‹ 2011, Kendallâ€‹ Ford, an automobileâ€‹ dealership, spentâ€‹ $20,000 on a new car lift for its repairâ€‹ shop, $2,000 on a

Lilit [14]

Answer:

$522,000

Explanation:

The computation of the Kendall Ford's total investment spending in 2018 is shown below:

= Dealership spent + repairing cost + unsold cars and trucks were valued i.e closing cost - unsold cars and trucks were valued i.e opening cost

= $20,000 + $2,000 + $900,000 - $400,000

= $522,000

The $600,000 would be ignored and the rest cost are taken for the computation

4 0

3 years ago