Suppose a newly elected president cuts taxes by 20 percent: i. Assuming that the money supply is held constant, what are the new equilibrium interest rate and income

Answers

Answer 1

Answer: hello your question has some missing information below is the missing information

An economy is initially described by the following equations:

C = 80 + 0.8(Y – T)

I = 120 –5r

M/P = Y – 25r

G = 100

T = 100

M = 2,700

P = 3

answer :

equilibrium interest rate ( r ) = 5.6%

equilibrium level of income = 1040

Explanation:

a) New equilibrium interest rate

T = 100 - 20/100 ( 100 ) = 80

Y = C + I + G

   = 80 + 0.8( y - 80 ) + 120 - 5r + 100

   = 236 + 0.8y - 5r

y  = 1180 - 25r  ------ ( 1 )

M/P = Y - 25r = 2700 / 3

y = 900 + 25r ------- ( 2 )

equate;  equation ( 1 ) and equation ( 2 )

1180 - 25r = 900 + 25r

∴ r = 5.6%

b) Equilibrium level of Income

To determine Equilibrium level of income we will use equation2

Y = 900 + 25(5.6)  = 1040


Related Questions

A farm grows soybean and produces chickens. The opportunity cost of producing each of these products increases as more of it is produced. Draw the farm's PPF. Label it PPF0
The farm adopts a new technology which allows it to use fewer resources to fatten chickens. Draw a PPF that illustrates the impact of the new technology. Label it PPF1
With the new technology, the opportunity cost of producing a bushel of soybean -blank- because -blank- must be forgone to produce a bushel of soybeans.
A. increase; more chickens
B. decreases; more chickens
C. decreases; fewer chickens
D. increases; fewer chickens
E. Does not change; the same number of chickens.

Answers

Answer:

The answer is "Increases; more chickens".

Explanation:

New technology personal capabilities chickens resources This means that more chickens may now be raised with the same inputs and the production of soybean would stay the same. The new PPF, therefore, shared perceptions along the horizontal axis of holes. Now, each unit made from soybeans will get more chances for chicken, as many chickens have to leave with one additional soybean.

When one option is chosen over another, opportunity cost is the profit that is lost. Simply said, the concept serves as a reminder to consider all viable options before making a decision.

Correct option is A. (increase; more chickens)

Capabilities of new technologies resource for chickens. This means that with the same inputs, more hens can be produced but soybean production remains same. Thus, along the horizontal axis of holes, the new PPF shared perceptions. Because many birds must now go with an additional soybean, each soybean-based unit will now have more possibilities foe chicken.

To know more about A Farm, refer to the link:

https://brainly.com/question/25291647

How can quality control affect production?

Answers

Answer: Quality Assurance with Quality Control

Quality assurance streamlines production and helps to ensure that the final products meet the company's quality criteria. It ensures that the processes used to design, test, and produce products will be done correctly.

Explanation:

Hope it helps

Payment of an above-market wage reduces shirking by employees and reduces worker turnover because it multiple choice 2 decreases worker productivity. raises the opportunity cost of losing a job. lowers the opportunity cost of losing a job. creates more supervisory positions.

Answers

Answer:

raises the opportunity cost of losing a job.

Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

For example, when a business firm makes payment of an above-market wage, it reduces shirking (avoiding responsibilities) by employees and reduces worker turnover because it raises the opportunity cost of losing a job. Thus, employees take their jobs seriously and do not miss work unnecessarily due to the payment of an above-market wage.

Hodgkiss Mfg., Inc., is currently operating at only 95 percent of fixed asset capacity. Current sales are $800,000. Fixed assets are $480,000 and sales are projected to grow to $890,000. How much in new fixed assets are required to support this growth in sales

Answers

Answer:

$4,292,699.99

Explanation:

Calculation to determine How much in new fixed assets are required to support this growth in sales

Full capacity sales = $800,000/0.95 = $842,105.26

Capital intensity ratio = $480,000/ $842,105.26 = 0.57000000

Fixed asset need = ($890,000 × 0.57000000) - $480,000 = $4,292,699.99

Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2018, are as follows. Assume all accounts have normal balances.
110 Cash $83,600 312 Dividends $135,000
112 Accounts Receivable 233,900 313 Income Summary —
115 Inventory 624,400 410 Sales 5,069,000
116 Estimated Returns Inventory 28,000 510 Cost of Goods Sold 2,823,000
117 Prepaid Insurance 16,800 520 Sales Salaries Expense 664,800
118 Store Supplies 11,400 521 Advertising Expense 281,000
123 Store Equipment 569,500 522 Depreciation Expense —
124 Accumulated Depreciation— Store Equipment 56,700 523 Store Supplies Expense —
210 Accounts Payable 96,600 529 Miscellaneous Selling Expense12,600
211 Salaries Payable — 530 Office Salaries Expense 382,100
212 Customers Refunds Payable 50,000 531 Rent Expense 83,700
310 Common Stock 100,000 532 Insurance Expense —
311 Retained Earnings 585,300 539 Miscellaneous Administrative Expense 7,800
Part 1: Journalize the transactions below for May, the last month of the fiscal year. For a compound transaction, if an amount box does not require an entry, leave it blank.
Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
May 1: Paid rent for May, $5,000.
Comprehensive Problem 2
Part 3:
NOTE: You must complete parts 1 and 2 before completing part 3.
Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank.

Answers

Answer:

1- Rent expense (Dr.) $5,000

Cash (Cr.) $5,000

2- Advertising Expense (Dr.) $11,000

Cash (Cr.) $11,000

3 - Accounts Receivable (Dr.) $43,200

Sales Revenue (Cr.) $43,200

4 - Office Supplies (Dr.) $9,280

Accounts Payable (Cr.) $9,280

5 - Salaries Expense (Dr.) $56,000

Salaries Payable (Cr.) $56,000

Explanation:

The journal entries for the month of May are recorded. These transactions are posted into general ledger accounts which forms the trial balance. The trial balance summarizes the account balances and debit, credit totals are found.

Trial Balance :

Debits;

Rent Expense $5,000

Advertising Expense $11,000

Office Supplies $9,280

Accounts Receivable $43,200

Salaries Expense $56,000

Credits;

Cash $16,000

Salaries Payable $56,000

Sales Revenue $43,200

Accounts Payable $9,280

Assume a lender offers you a 25,000, 10%, three year loan that is to be fully amortized with three annual payments. The first payment will be due one year from the loan date.

Required:
Construct amortization

Answers

Answer:

A = 10,052.87

Explanation:

A = P * [ r(1+r)^n / ((1+r)^n - 1) ]

P = 25000

r = 10% = 0.1

n = 3

A = 25000 * [ 0.1(1.1)^n / (1.1^3 - 1) ]

10,052.87 = 25000 * [ 0.1331 / 0.331 ]

he already explained it

Installing an automated production system costing $300,000 is initially expected to save Zia Corporation $52,000 in expenses annually. If the system needs $7,500 in operating and maintenance costs each year and has a salvage value of $30,000 at year 10, what is the IRR of this system

Answers

Answer:

8.87%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-300,000

Cash flow each year from year 1 to 9 = $52,000  - $7,500  = $44500

Cash flow in year 10 =  $44500 + $30,000 = $74500

IRR = 8.87%

To determine the value of IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

Could anyone help with this question?

Answers

I think the second choice is the answer.

When Dianna does not know the outcome of each alternative until she has actually chosen that alternative, she is facing conditions of uncertainty time pressures confirmation bias emotional intelligence escalation of commitment

Answers

Answer:

uncertainty

Explanation:

Uncertainty is the inability of a person to know the outcome of a decision or a line of action.

One does not have a certainty of how things will turn out in a given situation.

In the given instance where Dianna does not know the outcome of each alternative until she has actually chosen that alternative, she is facing a condition where she is not certain of the outcome of any alternative

Should a firm change its positioning depending on the market? What are the potential advantages and disadvantages of doing this? Write a position statement for yourself to convince your favorite company to hire you.

Answers

Answer:

In simple words, In comparison to competitors, market positioning refers to the capacity to impact customer perceptions of a brand or commodity. The purpose of market placement is to establish a brand's or product's image or character so that people view it with a certain aim in mind.

Effective sales promotion has the best characteristic of being able to provide a competitive edge. As a result, if a corporation can position its services as particularly important, competitors will believe it will be difficult to make a strong case for acquiring alternatives.

Capital market securities have short-term maturities with less than one year and therefore can be sold for cash quickly and easily.
a) true
b) false

Answers

Answer:

b) false

Explanation:

The capital market securities may be defined as a financial market where long term debts or the equity-backed securities can be bought and then sold.

The capital market securities are long term maturities  where cash can be bought and sold easily.

The money market securities are a short term maturity financial securities such as stocks, bonds, etc.

Therefore, the answer is false.

Lingadalli Corporation (PLC) is considering an IPO. LC has 12 million shares of common stock owned by its founder and early investors. LC has no preferred stock, debt, or short-term investments. Based on its free cash flow projection, LC's intrinsic value of operations is $210 million. LC wants to raise $30 million (net of flotation costs) in net proceeds. The investment bank charges a 7% underwriting spread. All other costs associated with the IPO are small enough to be neglected in this analysis and all shares sold in the IPO will be newly issued shares. Answer the following questions. Inputs Value of operations (VPre-IPO) $210 million Number of existing shares (Existing) 12 million Target net proceeds $30 million Flotation costs (F) 7% a. What is the intrinsic stock price per share before the IPO

Answers

Answer:

$ 17.50

Explanation:

The intrinsic stock price per share before the IPO can be determined using the company's details before the IPO, in other words, the intrinsic value per share before the initial public offer is the pre-IPO value of the company divided by its number of existing shares which is computed thus:

intrinsic stock price per share before the IPO=LC's intrinsic value of operations/Number of existing shares

LC's intrinsic value of operations= $210 million

Number of existing shares= 12 million

intrinsic stock price per share before the IPO=$210 million/12 million

intrinsic stock price per share before the IPO=$ 17.50  

Margaret has a portfolio consisting of a risk-free asset and a stock with a beta of 1.5. If she wishes to lower the overall beta of her portfolio Margaret could _____ the portfolio weight of the risk-free asset and _____ the portfolio weight of the stock.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) increase; not change

Answers

Answer:

B

Explanation:

Beta measures systemic risk

Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates.

The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

the beta of a risk free asset is 1

If she wants to decrease the beta of her portfolio, she would want to decrease the riskiness of her portfolio. to do this, she should increase the weight of the risk-free asset and decrease the weight of the risky asset (stock)

Help please I have no clie

Answers

Answer:

It is A C and D

Explanation:

I hope i helped you bro!

Explanation:

a b and c. The others are either too costly (lots of ATMs) or a bad thing (higher check fees).

3 factors that caused human trafficking​

Answers

Answer:

Mass eviction, war, extreme poverty, a lack of access to education and work prospects, violence, and destructive societal norms such as child marriage are all elements that drive people into trafficking situations.

Explanation:

Thái độ của người lao động ảnh hưởng như thế nào đến hiệu quả của tổ chức?

Answers

gfgucugcuyfuyf ughh bjbjhj tytyty p pleaseee frick. meee hihuhuhu yaaa

https://timviec365.vn/blog/thai-do-lam-viec-la-gi-new9667.html

XYZ Company manufactures several different products. Unit costs associated with Product ABC are as follows: Direct materials $87 Direct manufacturing labor 42 Variable manufacturing overhead 26 Fixed manufacturing overhead 35 Sales commissions (2% of sales) 16 Administrative salaries 19 Total $225 The percentage of the total variable costs per unit associated with Product ABC with respect to total cost is closest to

Answers

Answer:

76%

Explanation:

Variable cost per unit = Direct material + Direct manufacturing labor + Variable manufacturing overhead + sales commission

Variable cost per unit = $87 + $42 + $26 + $16

Variable cost per unit = $171

Total cost per unit = $225

% variable cost per unit to Total cost per unit = Variable cost per unit / Total cost per unit = $171 / $225 = 0.76 = 76%

So, the percentage of the total variable costs per unit associated with Product ABC with respect to total cost is closest to 76%.

Knowing what you have learned about customer service situations, why do win-lose situations often become lose-lose situations? What can an employee do to avoid this from occurring?

Answers

Answer:

Explanation:

In business a win-lose situation would mean that one is correct while the other is wrong. This often becomes a lose-lose situation because one party will get upset and refuse to do business with the other party, this means that one party ultimately loses out on the profit of the potential transaction and the other party loses out on the product/service that they wanted. Therefore, making it a lose-lose situation. The best thing that an employee can do is to de-escalate the situation and look for an alternative solution so that the customer leaves happy, the business gets the transaction, and they do not lose money or customers.

State and explain elements of organizational structure?

Answers

Elements of organizational structure are; (1) design jobs, (2) departmentalization, (3) establish reporting relationships, (3) distribute authority, (5) coordinating activities, and (6) differentiating among positions.

Gesky Industrial Products manufactures brushless blowers for boilers, food service equipment, kilns, and fuel cells. The company borrowed $18,000,00018,000,000 for a plant expansion and repaid the loan in seven annual payments of $3,576,4203,576,420, with the first payment made 11 year after the company received the money. What was the interest rate on the loan? Use hand and spreadsheet solutions.

Answers

Answer:

9%.

Explanation:

Note: The numbers in the question are repeated twice.

Borrowing amount = $18,000,000

Equivalent annual period = $3,576,420

Time period = 7

Interest rate of the loan formula:

A = P(A/P, i, n)

$3,576,420 = $18,000,000(A/P, i, 7)

(A/P, i, 7) = $3,576,420 / $18,000,000

(A/P, i, 7) = 0.1987

From interest table, we find the value of (A/P, i, 7) = 0.1987 at i = 9%. Thus, interest rate on the loan is 9%.

Goodwill—effect on ROI and operating income Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair value. Suppose that Target Co. had operating income of $180,000 and net assets with a fair value of $600,000. Takeover Co. pays $900,000 for Target Co.’s net assets and business activities.Required: a. How much goodwill will result from this transaction?b. Calculate the ROI for Target Co. based on its present operating income and the fair value of its net assets.c. Calculate the ROI that Takeover Co. will earn if the operating income of the acquired net assets continues to be $180,000.d. What reasons can you think of to explain why Takeover Co. is willing to pay $300,000 more than fair value for the net assets acquired from Target Co.?

Answers

Answer:

a. 300000 dollars

b. 0.30 or 30 percent return

c. 0.20 0r 20%

Explanation:

a. To get the goodwill

= 900000 - 600000

= $300,000

b. return on investment

= operating income ÷ fair value

= 180000/600000

= 0.3

= 30%

c. return on investment takeover will earn

assets = 300000 + 600000 = 900000 dollars

takeover income = 180000

ROI = 180000/900000

= 0.2*100

= 20%

d. They are willing to pay this given that they would be earning 20 percent return on investment.

The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory (60% complete) on October 1. During October, 3,900 tons were completed. The ending work in process inventory on October 31 was 300 tons (25% complete). What are the total equivalent units for conversion costs?

Answers

Answer:

$3,855

Explanation:

Calculation to determine the total equivalent units for conversion costs

Whole Units Percent conversion added in period Equivalent units for Conversion

Inventory in process , beginning

200 40% (100-60%) 80 (200*40%)

Started and completed in October

3,700 100% 3,700 (3,700*100%])

Transferred out of rolling 3,900 $0 $0

Inventory in process, Ending 300 25% 75 (300*25%)

Total Equivalent units for conversion $3,855

(80+3,700+75)

Workings:

Calculation to determine the Started and completed

Using this formula

Started and completed = Total completed - Beginning inventory

Let plug in the formula

Started and completed= 3,900 - 200

Started and completed = 3,700

Therefore the total equivalent units for conversion costs is $3,855

The text identifies three methods for estimating the cost of common stock from reinvested earnings (not newly issued stock): the CAPM method, the dividend growth method, and the bond-yield-plus-risk-premium method. However, only the CAPM method always provides an accurate and reliable estimate. True False

Answers

Answer:

False.

It is not only the CAPM method that always provides an accurate and reliable estimate.  The three methods look at the same issue from three different angles.

Explanation:

Despite their individual limitations, the methods have been found to provide some guidance to investors.  The CAPM limitation lies in its use of historical data.  The dividend growth method cannot be applicable to all firms, as it applies only to firms that pay dividend.  Finally, the bond-yield-plus-risk-premium method suffers from the many unsubstantiated assumptions underlying it.

g Financial information is presented below: Operating Expenses $ 90,000 Sales Returns and Allowances 26,000 Sales Discounts 12,000 Sales 300,000 Cost of Goods Sold 158,000 Gross profit would be

Answers

Answer:

$104,000

Explanation:

Calculation to determine what Gross profit would be

Using this formula

Gross profit=Sales -Cost of Goods Sold -Sales Returns and Allowances-Sales Discounts

Let plug in the formula

Gross profit=$300,000-$158,000-$26,000- $12,000

Gross profit=$104,000

Therefore Gross profit would be $104,000

What actions might be taken to reduce the risk associated with a loan to start the business? Give examples please​

Answers

Answer:

funny business has the word loan in it never trusted cuz one they might take away all your money and use it for something else like spending it on spoiled Rich daughters and pretty much just using your own money on random things that they don't need

Transaction exposure manifests itself when MNCs engage in each of the following, except: Group of answer choices Forward market. Acquiring assets/Incurring liabilities in foreign currency Buying/Selling on credit in foreign currency. Swap market /Options market. Futures market.

Answers

Answer:

Forward market.

Explanation:

Transaction exposure represent the uncertatinity level where the business is involved in the trade that to be done on the international level. It is the risk where the currency exchange rate fluctuates when the financial obligation is undertaken by the firm

So as per the given situation, it engaged in all the things except the forward market because in all other things it is engaged by the MNC

Therefore the first option is correct

Consider the following independent situations:
1. Mike Finley wishes to become a millionaire. His money market fund has a balance of $289,664 and has a guaranteed interest rate of 10% per year.
How many years must Mike leave that balance in the fund in order to get his desired $1,000,000?
2. Assume that Sally Williams desires to accumulate $1 million in 18 years using her money market fund balance of $250,249.
At what interest rate must Sally's investment compound annually?

Answers

Answer:

a. Number of years = 13 years

b. Interest rate = 8%

Explanation:

a. Present value = $289664

Interest rate = 10%

Future value = $1000000

Future Value = Present Value (1 + r)^n

1000000 = 289664 (1 + 10%)^n

(1 + 10%)^n = 1000000 / 289664

(1 + 10%)^n = 3.45227

(1.10)^n = 3.45227

Now solve for the n by taking ln both side.

So, n = 13

Thus, number of years = 13 years

b. Future value = 1000000

   Present value = 250249

   Time = 18 years

   Future Value = Present Value (1 + r)^n

   1000000 = 250249 (1 + r)^18

   (1 + r)^18 = 1000000 / 250249

   (1 + r)^18 = 3.99602

   Now solve for the value of r.

   Thus, r = 8%

  Interest rate = 8%

1) You are considering purchasing a 20 year bond from Saudi Arabia. You have a required return
of 15%. The bond has the following characteristics:
Par Value: $1,000
Maturity: 20 years
Coupon Rate: 12%
What would you offer for this bond today?

Answers

Answer:

$812.20

Explanation:

Given the following bond characteristic:

Coupon rate = 12%

Market or yield rate = 15%

Years to maturity = 20 years

Face or par value = $1000

Inputting the values into a bond value calculator, the bond value output is : $812.20

This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.

Stanky Company had the following journal entries related to production for the period Work-in-Process 11,500 Raw Materials 11,500 Manufacturing Overhead 7,500 Cash and Payables 7,500 Work-In-Process 8,500 Wages Payable 8,500 Work-In-Process 7,200 Manufacturing Overhead 7,200 Finished Goods 24,025 Work-In-Process 24,025 The beginning and ending balance in Finished Goods Inventory is $1,980 and $3,960 respectively. What amount would be reported for 'Adjusted' Cost of Goods Sold

Answers

Answer:

Stanky Company

The amount that would be reported for  'Adjusted' Cost of Goods Sold is:

= $22,045

Explanation:

a) Data and Calculations:

Debit Work-in-Process 11,500

Credit Raw Materials 11,500

Debit Manufacturing Overhead 7,500

Credit Cash and Payables 7,500

Debit Work-In-Process 8,500

Credit Wages Payable 8,500

Debit Work-In-Process 7,200

Credit Manufacturing Overhead 7,200

Debit Finished Goods 24,025

Credit Work-In-Process 24,025

Work-in-Process

Raw Materials                    11,500

Wages Payable                  8,500

Manufacturing Overhead 7,200

Total                              $27,200

Finished goods             (24,025)

Balance of WIP                $3,175

Finished Goods Inventory:

Beginning                  $1,980

Work-In-Process      24,025

Ending                      (3,960)

Cost of good sold $22,045

I lead the Customer Support Team for the magazines category. Customer questions for one shipping vendor have increased since the beginning of the promotional campaign. The campaign ended two months ago, but we are still getting a large number of questions. Can you help us understand the cause

Answers

Answer:

The below is the influence of each factor on client inquiries, according to the customer support team:

1. The transportation demand is excessive.

2. The number of faulty items has increased.

3. There are far too many goods that aren't delivered on time.

4. There aren't enough items for sale.

For one thing, because it's a seasonal product shipping, the number of shipments is fairly large. The quantity of items sent also shows this.

For 2: Due to the huge amount of shipments, the most common customer concern is receiving wrong items.

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