Business, 02.07.2020 20:01 hickslily9
Suppose the following list of events describes all of the economic activity resulting from an increase in government spending. Suppose that at each step after the initial one, the marginal propensity to consume is 0.77 and the tax rate is 13%.
Step 0. The government spends $5500 on meat to host a very large dinner for foreign diplomats.
Step A. The butcher takes the income earned by selling the meat saves some and spends the rest on a wedding cake for his daughter.
Step B. The baker who produced the wedding cake saves some of her earnings and uses the rest to purchase beautiful candlesticks as gifts for all of her friends.
Step C. The local candlestick maker saves some of his revenue for retirement and spends the rest on building materials to improve his house.
Required:
a. How much does the candlestick maker earn for selling the candlesticks?
b. How much does the candlestick maker spend on building materials?
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 04:10, jennifer9983
Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.
Answers: 2
Business, 22.06.2019 05:20, RichardKing2376
What are the general categories of capital budget scenarios? describe the overall decision-making context for each.
Answers: 3
Business, 22.06.2019 12:50, HarleyQuinn117
Performance bicycle company makes steel and titanium handle bars for bicycles. it requires approximately 1 hour of labor to make one handle bar of either type. during the most recent accounting period, barr company made 7,700 steel bars and 2,300 titanium bars. setup costs amounted to $35,000. one batch of each type of bar was run each month. if a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be:
Answers: 2
You know the right answer?
Suppose the following list of events describes all of the economic activity resulting from an increa...
Questions in other subjects:
History, 14.01.2020 20:31
Business, 14.01.2020 20:31
Social Studies, 14.01.2020 20:31
Mathematics, 14.01.2020 20:31
