g Assume that the multiplier in the Chinese economy is 3 and autonomous investment expenditures increase by $100. The Chinese government has a budget deficit of $100 and the income tax rate is 30 percent. The increase in autonomous investment expenditures will:Group of answer choices increase equilibrium income by $300 and cause the budget deficit to decrease by $90.increase equilibrium income by $300 and cause the budget deficit to increase by $100.increase equilibrium income by $300 and cause the budget deficit to decrease by $100.increase equilibrium income by $300 and cause the budget deficit to increase by $90.

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.