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3 years ago

If government spending increased by $5 billion and the expenditure multiplier is 3.2, what would be the increase in the real GDP

Business

1 answer:

aleksley [76]3 years ago

3 0

The increase in real GDP when government spending increases is $16 billion.

<h3>What is the increase in real GDP?</h3>

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

Increase in Real GDP = multiplier x increase in government spending

$5 billioin x 3.2 = 16 billion

To learn more about GDP, please check: brainly.com/question/15225458

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The Blooming Flower Co. has earnings of $3.68 per share. a. If the benchmark PE for the company is 18, how much will you pay for

Naddik [55]

Answer:

a) $66.24

b) $77.28

Explanation:

The price to earnings ratio (PE ratio) is a valuation used by investors to determine if a stock is overvalued or undervalued.

Payment for stock is the product of Benchmark PR ratio and earnings per share.

Given that the earnings per share is $3.68 per share

a) If the benchmark PE for the company is 18

Payment for stock = Benchmark PR ratio × earnings per share = 18 × $3.68 per share = $66.24

a) If the benchmark PE for the company is 21

Payment for stock = Benchmark PR ratio × earnings per share = 21 × $3.68 per share = $77.28

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3 years ago

For a nail salon, the costs associated with the purchase of nail polish and other products like polish remover and disposable fl

ira [324]

Answer: Variable cost; should be considered

Explanation:

For a nail salon, the costs associated with the purchase of nail polish and other products like polish remover and disposable flip flops are examples of variable costs. These should be considered when building a MCS.

Variable costs are the costs that varies with production. They are the opposite of fixed costs which are fixed. The nail polish and other products like polish remover and disposable flip flops are variable costs because the amount that'll be bought depends on the available customers and therefore isn't fixed.

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3 years ago

Wiggins Company has 2,000 shares of $100 par preferred stock, which were issued at par. It also has 35,000 shares of common stoc

kolbaska11 [484]

Answer:

e) $17.00 shares

Explanation:

Calculation for the book value per common share

First step is to calculate for the Preferred stock claim

Using this formula

Preferred stock claim= Company shares × Par preferred stock

Let plug in the formula

Preferred stock claim= 2,000 shares x $100 par share

Preferred stock claim= $200,000

Second step is to calculate for the Book value per common share using this formula

Book value per common share=(Total stockholders' equity-Preferred stock claim)/Common stock outstanding shares

Let plug in the formula

Book value per common share=($795,000 - $200,000)/35,000 shares = $16 share

Book value per common share=$595,000/35,000 shares

Book value per common share= $17.00 shares

Therefore the book value per common share will be $17 shares

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3 years ago

uestion 31 Oriole Company has the following inventory data: July 1 Beginning inventory 114 units at $19 $2166 7 Purchases 399 un

lina2011 [118]

Answer:

$7,714

Explanation:

The computation of the cost of good sold under LIFO method is shown below

But before that following calculations need to be done

Goods sold = Beginning inventory + Purchases - Ending inventory

= 114 + (399 + 57) - 190

= 380 units

Now 380 units sold would include 57 units of July 22 purchases and balance i.e. (380-57) 323 units of July 7 purchases

So, cost of goods sold

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3 years ago

Parsons Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last

arsen [322]

Answer:

option (C) 32,750 hours

Explanation:

Data provided in the question:

Actual manufacturing overhead cost = $250,000

Overapplied overhead = $12,000

Predetermined overhead rate = $8.00 per direct labor-hour

Now,

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= $250,000 + $12,000

= $262,000

Therefore,

Direct Labor Hours worked last year = $\frac{\textup{Total Manufacturing Overhead applied}}{\textup{Predetermined overhead rate}}$

= $\frac{\textup{262,000}}{\textup{8}}$

= 32,750 hours

Hence,

The correct answer is option (C) 32,750 hours

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3 years ago