The MM Theory with taxes implies that firms should issue maximum debt. In practice, this is does not true because Bankruptcy is a disadvantage to debt.
A principle is a rational form of abstract considering a phenomenon, or the consequences of such questioning. The procedure of contemplative and rational questioning is often associated with such procedures as observational observe or research. Theories may be medical, belong to a non-clinical subject, or no subject in any respect. relying at the context, a theory's assertions may, as an instance, consist of generalized explanations of how nature works. The phrase has its roots in ancient Greek, however in present day use it has taken on numerous associated meanings. In cutting-edge science, the term "idea" refers to clinical theories, a well-confirmed kind of explanation of nature, made in a manner regular with the scientific approach, and pleasant the standards required by modern-day technology.
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an important quality of a good board of directors is that they do not get involved in critiquing company strategies
The statement which suggests that important quality of a good board of directors is that they do not get involved in critiquing company strategies is false.
Board of Directors a group of senior executives and experts who take decisions for the efficient working of their firm. It is not advisable that they remain quiet on the company policies and strategies, rather they must always remain vocal to provide constructive criticism to the company. It helps the company officials to look forward towards greater changes and which strategies they must focus upon to ensure larger overall profits. It enables valuable growth of the company and its employees and also rectifies the errors which may be present in the quality management of the firm.
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which of the following statements is correct? in contrast to competitive goods markets, in the labour market, sellers have market power. the market clears in both competitive goods and labour markets. the market equilibrium is efficient (no deadweight loss) in both the competitive goods market and the labour market. unlike in the competitive goods market, the exercise of power affects outcomes in the labour market.
Unlike in the competitive goods market, the exercise of power affects outcomes in the labor market. This statements is correct.
In economics, the term "competitive market" describes a marketplace where there are many customers and sellers and where no one buyer or seller has a significant impact on the market. Unrestricted access, a large number of customers and sellers, and uniform products are characteristics of competitive marketplaces.
The cornerstone of a robust American economy is healthy market competition. The fundamentals of economics show that when businesses compete for customers, consumers benefit from cheaper pricing, better products and services, more variety, and more innovation.
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When a regulatory agency does the bidding of the industry it is supposed to be regulating, political scientists call this phenomenon
When a regulatory agency does the bidding of the industry it is supposed to be regulating, political scientists call agency capture. Regulatory capture.
It is a type of authority corruption that occurs when a political entity, policymaker, or regulator is co-opted to serve the commercial, ideological, or political interests of a minor constituency, such as a specific geographic area or industry. Regulatory capture is an economic theory that suggests regulatory agencies may become dominated by the interests they regulate rather than the public interest. As a result, the agency acts in ways that benefit the industry it is supposed to regulate. A regulatory body is said to be "captured" when it is dominated by a particular company or industry.
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golden corporation's current year income statement, comparative balance sheets, and additional information follow. for the year, (1) all sales are credit sales, (2) all credits to accounts receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to accounts payable reflect cash payments for inventory, and (5) any change in income taxes payable reflects the accrual and cash payment of taxes.
At December 31, there was $1,72,000 in cash.
According to the information provided in the inquiry, the company's net income is $148,800.
The following adjustments are made to net income to net cash generated by operations:
the comparative balance sheet as follows
The accounts had a decrease of $16,000.
-$79,000 worth of inventory has increased.
An increase in accounts payable of $24,000
The increase in income taxes due is $6,900
The amount deducted for depreciation is $54,000.
There is $138,700 in net cash provided by operating activities.
money flows from investing activities: $49,000 in equipment purchases
Net cash used for investing was $49,000 less.
financial activity cash flows: money obtained from stock issuing Paid in cash: $64,000 for cash dividends $ -97,000
$33,000 less was used to finance activities on net.
Net cash growth (decline) $56,200
Cash on hand as of December 31 of the previous year: $157,800
cash on hand as of At December 31, there was $1,72,000 in cash.
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the manage stage of the data life cycle is when a business decides what kind of data it needs, how the data will be handled, and who will be responsible for it.
A business chooses what type of data it need, how it will be maintained throughout its life cycle, who will be in charge of it, and the best results during planning.
Data lifecycle management (DLM) is a policy-based method for controlling the flow of data in an information system from the point of creation and initial storage to the point at which it is no longer needed and is removed. Processes for lifecycle management are automated by DLM solutions.
It manages data from the point of data entry to the point of data deletion. Data is divided into phases depending on various criteria, and when it completes certain tasks or satisfies particular needs, it advances through these stages.
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1. Ease of formation, flexibility and diversity of management are advantages of the _____ form of business ownership.
a. partnership
b. joint venture
c. cooperative
d. conglomerate
e. corporation
The partnership type of corporate ownership has benefits such as simplicity in creation, adaptability, and diversity in business ownership.
The act of producing, purchasing, and reselling goods for financial gain is referred to as business. "Any activity or enterprise performed for profit" is also included.
Since the business entity is not legally distinguishable from the ownership by the use of a business name, the owner of the business is accountable and liable for any commitments made by the business. If a business accumulates debt, creditors may seize the owner's personal belongings. In a business structure, corporate tax rates are not permissible. The proprietor is required to pay personal taxes on all business income.
The expression is widely used colloquially to describe an organization, such as a corporation or cooperative (but not by lawyers or governmental officials).
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Most users rely on general purpose financial statements, which Include which of the following?(Check all that apply.)Notes to financial statementsStatement of cash flows'Balance sheetStatement of retained earningsIncome statement
Most users rely on general-purpose financial statements, which include the balance sheet statement.
What is a balance sheet?A balance sheet is a financial statement that lists an organization's assets, liabilities, and shareholder equity. The balance sheet is one of the three main financial statements used when evaluating a business. It provides a snapshot of a corporation's assets and liabilities as of the publication date.What is a balance sheet used for?A balance sheet gives you a brief snapshot of the financial state of your business at any particular time. Business leaders can examine the financial health of their company using a balance sheet, an income statement, and a cash flow statement. When a company has a healthy balance sheet, its core operations will be funded with the right amount of working capital (current assets less current liabilities), ultimately generating revenue and profit.Most users rely on general-purpose financial statements, which include the balance sheet statement.
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which of the following is not one of the three key project-based factors discussed in the lecture and textbook in selecting a conversion strategy?
Rapid application development (RAD) is not one of the three key project-based factors discussed in the lecture and textbook in selecting a conversion strategy.
What do you mean by Strategy?Setting objectives and goals, choosing actions to attain the goals, and allocating resources to carry out the activities are all common components of strategy. A plan outlines the ways by which the outcomes (goals) will be accomplished (resources).
In order to obtain immediate user feedback, rapid application development (RAD) focuses on the designing and prototyping stages. RAD suggests more flexibility than traditional development approaches, which begin with planning and continue with execution. At the end of the day, quick incremental upgrades and ongoing user feedback help to provide better results.
Therefore, Rapid application development (RAD) s not one of the three key project-based factors discussed in the lecture and textbook in selecting a conversion strategy.
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Your question is incomplete, but most probably your question will be;
Which of the following is not one of the three key project-based factors discussed in the lecture and textbook in selecting a conversion strategy?
a. Rapid application development (RAD) (e.g., iterative, system prototyping, throwaway prototyping)
b. Forward-backward development (e.g., Prototype-User development, X-model)
c. Agile development (e.g., XP, Scrum)
d. Waterfall development (e.g., traditional, parallel development, V-model)
which one of the following individuals should be selected to collect job analysis information if the goal is to design job specifications that will withstand close investigation by the equal employment opportunity commission (eeoc)?
The one of the following individuals should be selected to collect job analysis information.
Briefing:-if the goal is to design job specifications that will withstand close investigation by the equal employment opportunity commission (Eeco) an outside consultant trained to collect job analysis information.
Which statement best describes how strikes affect collective bargaining negotiations?The major purpose of strikes is to expedite the negotiation process.
What does a position analysis quizlet aim to achieve?Information is given for the job description.
Which of the following about the Occupational Safety and Health Act is untrue?Private employers are exempt from the law.
Which of the following is not a required element for an American with Disabilities Act claim to succeed?The plaintiff's handicap was of a physical, not mental, nature.
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in a real estate transaction, which of the following is established when the parties enter into an agreement voluntarily with a full understanding of the contract terms?
In a real estate transaction, the one which is established when the parties enter into an agreement voluntarily with a full understanding of the contract terms is called consent offer and acceptance.
A contract is an agreement between the parties, which tends to create a mutual obligations that are enforceable by law. This is taken into consideration even during the real estate transaction.
The consent offer and acceptance are considered to be the key elements to a binding contract. Thus, the offer and acceptance occur when the seller accepts a buyer's offer on the home, or any other property.
Hence, consent offer and acceptance is considered to be important in the real estate.
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Refer to Figure 9-22. Suppose the government imposes a tariff of $20 per unit. The amount of revenue collected by the government from the tariff is
PS please explain
Refer to Figure 9-22. Suppose the government imposes a tariff of $20 per unit. The amount of revenue collected by the government from the tariff is $12,000.
Revenue is the whole quantity of income generated by the sale of products or offerings related to the employer's number one operations. sales, also referred to as gross sales, is regularly called the "top line" as it sits at the pinnacle of the profits assertion. earnings, or net income, is a organisation's total earnings or income.
Revenue is any other phrase for the amount of money a enterprise generates from its sales. sales is most virtually calculated because the variety of devices offered multiplied by way of the selling price. because sales do no longer account for costs or prices, a company's income, or bottom line, will be lower than its sales.
Revenue is the money earned with the aid of a organization received primarily from the sale of its services or products to clients. There are unique accounting policies that dictate while, how, and why a company acknowledges sales. for instance, a enterprise can also get hold of coins from a patron. however, a agency might not be able to understand sales till they've finished their a part of the contractual responsibility.
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Finally, Kevin has a client who would like to invest into an account that earns 3% interest, which is compounded annually. The client opens the account with an initial deposit of $5,000, and deposits an additional $5,000 into the account each year thereafter. How much money is in the account after the tenth deposit, assuming no withdrawals or other deposits were made?
In light of the aforementioned circumstance, the account's balance (rounded to the closest dollar) following the tenth deposit is "$56,650."
The phrase "sinking fund" refers to the money set aside by individuals over a defined time period to save for a specific purpose, such as a future capital expense or the repayment of long-term debt. A sinking fund is a clever approach to save money by allocating a small sum each month toward a particular purchase. Sinking funds operate as follows: You'll put money down in one or more categories each month to be utilized later.
Herein shows the way to "$56,650."
[tex]S = N [ (1+r)^n - 1 ] /rwhere r = 0.030n = 10 yearsN = 5,000S = 5,000 [ (1.030)^10 -1 ]/.030= 5,000 [ 1.34 -1 ]/.030= 5,000 [ 11.33]= $56,650.[/tex]
Accordingly, it can be said that "$56,650" is the right response in this case.
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which of the following are largely responsible for pushing prisons beyond their breaking points? select all that apply.
The John Howard (1726–1790), an English humanitarian of the 18th century, is often regarded as the founder of jail reform. Although the war on drugs had significantly increased incarceration.
Three humanitarian continue to have an impact on it: excessive policing in underserved and vulnerable groups, the harsher sentences for infractions, and never-ending restrictions after release. To make prisons more compassionate and reformatory, reformers in the nineteenth century relied on prior incarceration. The four English jail reformers John Howard, George Onesiphorus Paul, Elizabeth Fry, and John T. Burt are the subject of this exhibition, which spans the eighteenth and nineteenth centuries.
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a swot analysis begins by examining ____ factors that could influence a company in either a positive or negative way.
A SWOT analysis begins by examining external factors that could influence a company in either a positive or negative way.
An analysis of your company's strengths, weaknesses, opportunities, and threats, or SWOT, is a planning procedure that aids in overcoming obstacles and identifying potential new business prospects.
A SWOT analysis' main goal is to assist enterprises in fully understanding all the variables that go into choosing a course of action. During a study to determine the reasons why business planning repeatedly failed, Albert Humphrey of the Stanford Research Institute developed this strategy in the 1960s. Since its inception, SWOT analysis has emerged as one of the most effective tools for business owners to launch and expand their enterprises.
According to Bonnie Taylor, chief marketing strategist of CCS Innovations, "it is hard to effectively map out a small business's future without first examining it from all angles, which involves an extensive look at all internal and external resources and risks." A SWOT analysis does this in four simple phases that even inexperienced business leaders may comprehend and adopt.
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A copper mining operation discharges waste products into a river and causes higher costs and discomfort to downstream users of the water for which they are not compensated. In this case Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the optimal amount of society's resources is being used to produce copper. b there is an external benefit to society from copper production. Ñ too little of society's resources is being used to produce copper. d too much of society's resources is being used to produce copper.
A copper mining operation discharges waste products into a river and causes higher costs and discomfort to users of the water is justified as there is an external benefit to society from copper production.
Copper mining is mostly done in an open-pit mining format, in which a series of steppes are dug deeper and deeper on the earth's surface over time. To remove the ore, boring machinery is utilized to drill deep holes into the hard rock, and explosives are used in the drill holes to cause a blast and break the rock.
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The cost of using a long-term asset (such as a vehicle), that will be used in a business for several years is spread over the asset's useful life. Its annual allocated cost appears on the income statement as a(n) _____ expense.
variable
inventory
depreciation
receivable
The book value of fixed assets is reduced as a result of depreciation. Depreciation is the term used to describe how assets lose value over time as they become outdated.
Which property types can be depreciated?The IRS has detailed regulations regarding the kinds of assets that can be depreciated for accounting purposes. In order for an asset to be depreciable, the IRS says that You are my owner utilized in your business or to generate revenue and possess a known useful life to be anticipated to last for longer than a year.
Which assets are not subject to depreciation?Nothing that does not wear out, get outdated, or get used up is eligible for depreciation because it does not meet IRS requirements. Moreover, you cannot depreciate.
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if a stock consistently goes down (up) by 1.37% when the market portfolio goes down (up) by 1.08%, then its beta equals:
The value of beta as per the change in stock when the market portfolio also goes down is equal to 1.269.
As given in the question,
Change in the stock value by consistently going down is equal to 1.37%
Change in the Market portfolio value by consistently going down is equal to 1.08%
Beta represents the relation between the change in stock values as per the market portfolio.
Beta = ( Change in the stock value ) / (Change in the market portfolio value)
= -1.37% / (-1.08%)
= 137 / 108
= 1.2685
= 1.269
Therefore, as per the change in the stock value to the market portfolio the beta is equal to 1.269.
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FILL IN THE BLANK. The ___________________ is the institution designed to control the quantity of money in the economy and also to oversee the:
The Central Bank is an institution designed to control the quantity of money in the economy and also to oversee the safety and stability of the banking system.
What are the roles and responsibilities of the Central Bank?The role of the Central bank is responsible for overseeing the monetary system for a nation or group of nations, along with a wide range of other responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation, and full employment.
The role of the central bank has grown in importance in the last century. To ensure the stability of a country's currency, the central bank should be the regulator and authority in the banking and monetary systems.
It also has responsibilities including, issuing money, stabilizing financial systems, and others.
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which is not an expense account rent expense, repairs expense, advertising expense, interest expense, accrued expenses
Among the listed accounts, accrued expenses is not an expenditure account.
An expense account is the right to have money spent by employees for employment-related purposes refunded. A few common expense categories include cost of sales, utilities expense, discount allowed, cleaning expense, depreciation expense, delivery costs, income tax expenditure, insurance expense, interest expense, and advertising expense.
It is simpler to keep track of and arrange the numerous expenses that your business accrues over time using an expense account. In an expense account, expenses are raised by debits and lowered by credits. Your expenditure account grows as you make purchases.
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In a supertype/subtype hierarchy, subtypes that are lower in the hierarchy inherit attributes from not only their immediate supertype but from all ________ in the hierarchy.
In a supertype/subtype hierarchy, subtypes that are lower in the hierarchy inherit attributes from not only their immediate supertype but from all supertypes in the hierarchy.
A hierarchy is a set of objects that are arranged so that they are "above," "below," or "at the same level as" one another. In many different disciplines, including architecture, philosophy, design, mathematics, computer science, organisational theory, systems theory, systematic biology, and the social sciences, hierarchy is a crucial idea. A hierarchy can connect objects directly, indirectly, vertically, or diagonally. Although a system that is primarily hierarchical might also have alternative hierarchies, the only direct linkages in a hierarchy, insofar as they are hierarchical, are to one's immediate superior or to one of one's subordinates. A path of numerous connections in the same direction allows hierarchical links to extend "vertically" upwards or downwards.
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during 2020, the city of coyote contracts to build a bus stop for schoolchildren costing $13,800 as a special assessments project. the city collects $13,800 from directly affected citizens. the government has no obligation in connection with this project. the city records both a $13,800 revenue and a $13,800 expenditure in the capital projects fund. in preparing government-wide financial statements, the city records an asset and a general revenue for $13,800.
Correct change is a $60,250 increase-According to the information provided, the Capital Projects Fund reported an increase in its fund balance for the year of $60,250.
Correct change is a $60,250 increase-According to the information provided, the Capital Projects Fund reported an increase in its fund balance for the year of $60,250. In arriving at that figure a $13,800 revenue and the related expenditure were both recorded in that fund for this bus stop construction.
Because the government had no obligation, these cash flows should actually have all been reported in the Agency Fund. The auditing firm will remove both the revenue of $13,800 and the expenditure of $13,800 from the Capital Projects Fund. Because they are of the same amount but have an opposite effect on current financial resources, this removal leaves the overall increase in the fund balance unaffected at $60,250.
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The right question is:
Assume that the City of Coyote has produced its financial statements for December 31, 2020, and the year then ended. The city’s general fund was only used to monitor education and parks. Its capital projects funds worked in connection with each of these functions at times during the current year. The city also maintained an enterprise fund to account for its art museum. The government-wide financial statements provide the following figures: Education reports net expenses of $622,000. Parks reports net expenses of $105,000. Art museum reports net revenues of $54,750. General government revenues for the year were $881,250 with an overall increase in the city's net position of $209,000. The fund financial statements provide the following for the entire year: The general fund reports a $51,750 increase in its fund balance. The capital projects fund reports a $60,250 increase in its fund balance. The enterprise fund reports a $62,500 increase in its net position. The city asks the CPA firm of Abernethy and Chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. Officials also want to know the effect of each error. View each of the following situations as independent. During 2020, the City of Coyote contracts to build a bus stop for schoolchildren costing $13,800 as a special assessments project. The city collects $13,800 from directly affected citizens. The government has no obligation in connection with this project. The city records both a $13,800 revenue and a $13,800 expenditure in the capital projects fund. In preparing government-wide financial statements, the city records an asset and a general revenue for $13,800. In the general information, the capital projects fund reports a $60,250 increase in its fund balance for the year. What was the correct change in the capital projects fund balance during 2020?
The best way for a monopoly to maximize profits is to charge one very high price located at the upper left-hand side of their demand curve. Sticking to this fixed price is the best pricing strategy for the monopoly in order to maximize profits and capture all individuals on their demand curve.
True or False?
False. A monopolist should set prices that are in line with where A monopoly forms when there is just one seller in the market. In traditional economic theory.
the monopolistic situation is seen as the complete antithesis of perfect competition. The price and output that a monopolist can charge to maximize profits corresponds to the graph's intersection of the market demand curve pricing for that output and the point where marginal revenue equals marginal cost. The price and output that a monopolist can charge to maximize profits corresponds to the graph's intersection of the market demand curve pricing for that output and the point where marginal revenue equals marginal cost. A monopoly's greatest strategy for maximizing profits is to set a single, extremely high price that sits at the upper left-hand side of their demand curve.
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the following information is given for a cpm network: activity predecessor successor normal time normal cost crash time crash cost a --- b, c 5 $ 60 2 $ 125 b a d, c 4 70 2 90 c a, b d 6 80 3 150 d b, c --- 3 40 1 60 what is the project cost if the project is crashed by one day? multiple choice $125 $250 $270 none of these choices are correct.
The following information is given for a Cpm network: activity predecessor successor normal time normal cost crash time crash cost:
A - C - D .
What exactly is a CPM network?The least reliable method for predicting how long a project will take is the sequence of activities. It is founded on an assessment of the typical amount of time required to complete a task. The project's time and budget are managed by CPM.
With this approach, the project's critical path is formed by determining which project tasks are most important. The critical actions are those with a total float value of '0'.
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Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In addition, it took her 20 hours to make the ketchup and to do so she took time off from a job that paid her $20 per hour. Linda's accounting profit is _____________ while her economic profit is ______________.$300; negative $100
Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In addition, it took her 20 hours to make the ketchup and to do so she took time off from a job that paid her $20 per hour. Linda's accounting profit is $300 while her economic profit is negative $100.
Accounting is the manner of recording financial transactions pertaining to a enterprise. The accounting system consists of summarizing, reading, and reporting these transactions to oversight businesses, regulators, and tax collection entities.
Accounting, also known as accountancy, is the size, processing, and communique of economic and non monetary records about monetary entities together with corporations and corporations.
Basic accounting concepts used within the commercial enterprise international cover sales, costs, belongings, and liabilities. those elements are tracked and recorded in documents inclusive of balance sheets, earnings statements, and cash drift statements.
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Understanding the character of problems and gaining empathy for people are critical factors for helping you inform your judgment about
Understanding the character of problems and gaining empathy for people are critical factors for helping you inform your judgment about market risk.
Market risk is the chance that a person, business, or other entity will lose money as a result of events that have an impact on how well investments perform overall in the financial markets.
Investors and analysts use the value-at-risk (VaR) method to calculate market risk. VaR modeling is a statistical risk management technique that calculates the potential loss of a stock or portfolio as well as the likelihood that it will happen.
Empathy-driven decision-making implies that you are aware of others' needs even if you don't share them.
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a broker-dealer has flexibility in terms of the capacity in which it can act in a securities transaction. when buying a security from a client, the tr
The trade confirmation would state that the company served as the client's representative when purchasing security from a client.
Broker-dealers can function as either dealers or brokers (in an agency capacity) (principal capacity). The Broker-Dealer is acting in a primary capacity while purchasing (or selling from) the firm's inventory and this fact must be declared on the trade confirmation. The commission is only displayed on the confirmation when functioning in an agency capacity. In certain cases, the markup would be displayed; however, in this case, a markdown, not a markup, is paid when the dealer purchases something from the customer.
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True or False, a manager working in the united states will typically see a high level of collectivism among workers.
The statement given is false, a manager working in the united states will typically see a high level of collectivism among workers.
Typically, American society favors individualism over collectivism. According to the definition of collectivism, a society is one in which interpersonal ties are solid and people form cohesive groups. In other words, collectivism is the act of advancing social groups over individuals.
The fact that Americans typically see each person as a self-sufficient individual is crucial to comprehending the American value system. Everyone exists as an individual, not as a representative of their family, neighborhood, or any other group.
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As the CEO of a company that produces products for schools, Amber believes that her company needs not only to produce a profit but also to do things that benefit society. _______ guides Amber's beliefs.
Corporate lobbying
Individual responsibility
A sense of moral rights
The desire for sustainability
Social responsibility
As the CEO of a company that produces products for schools, Amber believes that her company needs not only to produce a profit but also to do things that benefit society. Social responsibility guides Amber's beliefs.
CEOA CEO can (theoretically) take on whatever jobs or responsibilities they choose; in fact, some CEOs, particularly those in smaller businesses, are rather hands-on with specific company functions. Depending on their professional experience and skill, CEOs may lean toward specific responsibilities such as marketing or finance. In larger firms, however, the CEO often mainly works with higher-level company strategy and overall growth, since most other activities are transferred to other managers or other divisions. While the CEO manages the operational parts of a firm, the board oversees the corporation as a whole, and the chairman is the head of the board. The board has the authority to overturn the CEO's choices, but the chairman of the board does not.
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Assume a simple closed Keynesian model where the MPC is 0.9 and the MPIM is 0.1. Also assume that potential real GDP is $1000 million, while actual (equilibrium) real GDP is $800 million.
a. What is the GDP gap?
b. Is there an inflationary or recessionary gap?
c. What change in government spending is required to restore the economy to full employment GDP? Show graphically using a Keynesian cross diagram.
d. What change in lump-sum taxes would bring about the same result?
e. Now assume that a Balanced Budget Amendment is passed, so that increases in government spending must be accompanied by equal increases in lump-sum taxes. What change in both G and T will close the GDP gap? (HINT: What is the balanced budget multiplier in this model?)
f. Of the changes in c), d) and e), which causes the largest increase in the deficit? Why?
a. The GDP gap is $200 million.
b. There is a recessionary gap.
c. The change in government spending required to restore the economy to full employment GDP is $200 million. This can be seen graphically in the Keynesian cross diagram below.
d. The change in lump-sum taxes required to restore the economy to full employment GDP is also $200 million.
e. The change in both G and T required to close the GDP gap is an increase in both government spending and lump-sum taxes of $133.3 million each. This is because the balanced budget multiplier in this model is 0.67 (MPC/(1-MPC)).
f. The change in c) causes the largest increase in the deficit because it requires an increase in government spending of $200 million with no change in taxes.
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a student takes out two loans totaling $3000 to help pay for college expenses. one loan is at 8% interest, and the other is at 10%. interest for both loans is compounded annually. if the first- year interest is $264, write a system of equations whose solution is the amount of each loan.
The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate (called the principal sum).
The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place. The interest rate over a year is known as the annual interest rate. Other interest rates are applicable over shorter time frames, such a day or a month, but they are typically annualized. An index of the preference for a dollar of present [income] over a dollar of future [income] has been used to describe the interest rate. The borrower needs or wants to have money as soon as possible.
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