In the Income-Expenditures model, it is assumed that investment is independent of the level of (current) income. This is:

Answers

Answer 1

Answer:

I'm not sure what this question is about, but the concept of the income expenditures model and its components is the following:

In the income (or aggregate) expenditures model, its author (Keynes) established certain assumptions in order to analyze how the economy works as a whole. His assumptions included that investment, government spending and net exports were all independent from income level.

When the economy is at equilibrium, total expenditures (GDP) = income level = consumption + government + investment + net exports

Another important assumptions are:

marginal propensity to consume (MPC) + marginal propensity to save (MPS) = 1consumption = autonomous consumption + [MPC x (total income level - taxes)]

Savings = investment increase when disposable income increases or real GDP increases.

This model is used to explain the relationship between labor and production levels, and how they are affected by the economy's total expenditures. By increasing expenditures, the demand for labor and products/services will increase.


Related Questions

. What do you think the purpose of standardized testing is? ​

Answers

Answer:

Explanation:

The purpose of standerdized testing is to allow teachers and administrators to ajust teaching procedures to better educate the students in that School/Area/State.

Answer:

Its for teachers and the school know how you are doing in school. Don't stress about tests. :D

Explanation:

How many times did Donald trump declare bankruptcy

Answers

Six times is the answer
The person above it correct.....6

As part of a good Section 351 transaction Andy contributes his business with a basis of $200,000 in exchange for $300,000 worth of stock and $50,000 of cash. What gain does Andy recognize?

Answers

Answer:

Gain = $150,000

Explanation:

Given:

Contribution = $200,000

Exchange stock = $300,000

Cash = $50,000

Find:

Gain

Computation:

Gain = Exchange stock + Cash - Contribution

Gain = $300,000 + $50,000 - $200,000

Gain = $150,000

Jacob works as a researcher for a car showroom. He's going to collect data about consumers' changing preferences, Interests, and demands. He
doesn't plan to select a sample or conduct a survey. Instead, he wants to analyze the behavior of random consumers on his own. He wants to
study their reactions without letting them know that they are a part of the research study. He has decided to go to car showrooms and check
how consumers react to various car models. The notes that he plans to record during the process will form the basis of the market research
data. Which method of primary market research does Jacob plan to use?

Answers

Answer:

Visits to competitors' locations

Explanation:

Analyzing the information obtained in the scenario of the question above, it is correct to state that Jacob plans to use the primary market research method of visits to competing locations.

This method consists of gathering essential data and information for his research collected directly in a place that can serve as a parameter as a real scenario, that is, when visiting competing places, Jacob will be able to achieve his goal of collecting information, which is to analyze through of a real situation as is the behavior of random consumers on their own and understand their reactions.

This method can be effective because it eliminates biased behaviors by research participants, so that it can identify a real consumption situation without any type of interference, and it can be ideal to identify patterns of behavior that help to identify data about changes in consumer preferences, interests and demands, which is the goal of your research.

Answer:

behavior observation

Explanation:

What is global trade?
A. When products, services, and money are exchanged between the United States and Canada
B. When products, services, and money are exchanged between different countries
C. When products, services, and money are exchanged within a single country
D. When products, services, and money are exchanged only between different cities in one state

Answers

Answer:

Answer letter B

When products,services,money are exchanged between different countries.

Answer:

B. When products, services, and money are exchanged between different countries

Which statement describes how borrowers will most likely benefit when the Fed reduces reserve requirements? Loan requirements will likely be relaxed. Interest rates will likely decrease. Housing prices will likely decrease. Investment opportunities will likely improve.

Answers

Answer:

B. Interest rates will likely decrease.

Explanation:

The statement describes how borrowers will most likely benefit when the Fed reduces reserve requirements is that interest rates will likely decrease.

How does Fed respond to recessions?

In the time of recessions, the Fed do uses different monetary policy tools in order to reduce unemployment rates and re-inflate prices.

These tools are said to be open market asset purchases, reserve regulation, etc. Borrowers will most likely benefit when the Fed reduces reserve requirements when interest rates will likely decrease.

Learn more about interest  rates from

https://brainly.com/question/2294792

what is confidential information​

Answers

Answer:

Information that is top secret vip your eyes only

Answer:

"Confidential Information" means all material, non-public, business-related information, written or oral, whether or not it is marked as such, that is disclosed or made available to the receiving party, directly or indirectly, through any means of communication or observation!

Hope it helps!

Please mark as Brainliest

your newest coworker is not as productive as other members on your team

Answers

Fire them then or give them more training and lower pay

Zhao Co. has fixed costs of $429,000. Its single product sells for $187 per unit, and variable costs are $122 per unit. If the company
expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.
Dollars
Percent
Margin of safety

Answers

Answer:

$635,000 and : 34%

Explanation:

Margins of safety is the difference between expected sales and the break-even point.

For Zhao, expected sales are 10,000 units

The break-even points in units = fixed cost/ contribution margin per unit

fixed costs = $429,000

Contribution margin per unit = selling price - variable costs per unit

=$187 -  $122

=$65

break-even point in units = $429,000/$65

break-even point = 6600 units

Margin of safety = 10,000 - 6600 units

=3400 units

In dollars is equal to margin of safety in units x selling price

=3400 x 187

=$635,000

as a percent of expected sales.

=3400/10000 x 100

=0.34 x 10,000

=34%

Suppose on Monday June 1, you long and I short the futures contract on 1000 units of commodity, for December delivery. We enter the positions when the futures price is $15 per unit. We are required to post margins equal to 12% of the contract amount. On Tuesday June 2, the December contract settles at $15.75. Between Monday and Tuesday, my return will be what percentage?

a. -4.2%
b. 50%
c. -42%
d. 5%

Answers

Answer: -42%

Explanation:

Based on the scenario in the question, the initial investment will be:

= 15 × 1000 × 12%

= 15 × 1000 × 0.12

= $1,800

We then calculate the return. This will be:

=[(15 - 15.75) × 1,000]/1,800

= -750/1,800

= -0.4166666667

Return = -42%

Sienna Manufacturing uses a two-step process to make a metal part. The first step involves cutting with a machine that requires a 40-minute setup time before the production of each batch. The cutting takes 30 minutes per part. The second step is polishing the parts from cutting. The polishing takes 40 minutes per part, and the polishing machine requires no setup. Assume demand is unlimited. What is the ideal batch size of the parts?

a. 10
b. 8
c. 4
d. 2

Answers

The correct answer is:

c. 4

Ralph has a balance of $1350 on his credit card, which he plans to pay off by
making a payment of the same amount each month. Which of these monthly
amounts will allow Ralph to pay off his balance the fastest?
O A. $40
B. $35
C. $25
O D. $30

Answers

Answer:

d

Explanation:

A project has an initial cost of $480,000, projected cash inflows of $311,500, cash costs of $214,650, a tax rate of 35 percent, and a weighted average cost of capital of 13.8 percent. What is the net present value of the project

Answers

Answer:

The net present value of the project is -$23,822.46.

Explanation:

Gross profit = Cash inflow - Cash cost = $311,500 - $214,650 = $96,850

Tax = Gross profit * Tax rate = $96,850 * 35% = $33,897.50

Net profit = Gross profit - Tax = $96,850 - $33,897.50 = $62,952.50

The net profit which is an annual income is a type of perpetuity and its present value can be calculated as follows:

Present value of perpetuity = Annual net profit or income / weighted average cost of capital = $62,952.50 / 0.138 = $456,177.54

The net present value of the project can now be calculated as follows:

Net present value of the project = Present value of perpetuity - Initial cost = $456,177.54 - $480,000 = -$23,822.46

Therefore, the net present value of the project is -$23,822.46.

which of the following would be part of a
financial managers investment decision?
a) Spending money on wovenie experdiduse
b) Spending money on Capital expenditure
a Borrowing funds
d) Raising money using equity Finance​

Answers

Answer:

D

Explanation:

because iring gi gapos

The adjusted trial balance for Chiara Company as of December 31 follows.


Debit Credit

Cash 69,000

Accounts receivable 54,000

Interest receivable 22,000

Notes receivable (due in 90 days) 170,500

Office supplies 16,500

Automobiles 171,000

Accumulated depreciation—Automobiles 70,000

Equipment 142,000

Answers

Answer:

poiuytrewq

lkjhgfdsa

mnbvcxz

When looking at developing a particular residential project in a market, the most important factors in figuring out the market area are ___________

Answers

Answer: employment opportunities and commuting ranges.

Explanation:

When looking at developing a particular residential project in a market, the most important factors in figuring out the market area are employment opportunities and commuting ranges.

One should look at the employment opportunities that such project will bring as this is vital to improving the standard of living of the people in the area. One should also look at the commuting ranges as that is vital too.

Trout Lumber Yard has a current accounts receivable balance of $447,516. Credit sales for the year just ended were $8,105,305. a. What is the receivables turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the days’ sales in receivables? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How long did it take on average for credit customers to pay off their accounts during the past year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

Trout Lumber Yard

a. The receivables turnover = Net Credit Sales/Average Receivables

= $8,105,305/$447,516

= 18 times per year

b. The Days' Sales in Receivables = Average Receivables/Credit Sales * 365

= $447,516/$8,105,305 * 365

= 20.15 days

c. On the average, it took 20.15 days (365/18.11) for credit customers to pay off their accounts during the past year.

Explanation:

a) Data and Calculations:

Accounts receivable balance = $447,516

Credit sales for the year just ended = $8,105,305

The receivables turnover = Net Credit Sales/Average Receivables

= $8,105,305/$447,516

= 18.11 times

The Days' Sales in Receivables = Average Receivables/Credit Sales * 365

= $447,516/$8,105,305 * 365

= 20.15 days

Swifty Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $159,400, and purchases for January through April totaled $504,000. Sales revenue for the same period was $671,100. Swifty’s normal gross profit percentage is 35% on sales.

Using the gross profit method, estimate Swifty’s April 30 inventory that was destroyed by fire.

Answers

Answer:

$226,000

Explanation:

Ending Inventory As of April 30, is the ending inventory from January to April.

Opening inventory = $159,409

Purchases = $504,000

gross profit =35% of  $671,100

=0.35 x 671,000

=234,000

cost of goods sold = revenue - gross profit

=$671,100 - $234,000

=$437, 000

cost of goods sold = opening inventory + purchases- ending inventory

=$437, 000=  $159,409 +  $504,000- ending inventory

=$437,000= $663,409- ending inventory.

Ending inventory =  $663,409 - $437,000

=$226,000

Dearborn Supplies has total sales of $193 ​million, assets of $110 ​million, a return on equity of 26 ​percent, and a net profit margin of 7.5 percent. What is the​ firm's debt​ ratio

Answers

Answer:

49.39%

Explanation:

The net income = sales x profit

= 193million x 7.5 percent

= 14 475 million dollars

The return on equity

= Net income/total equity

= 14.475/26%

= $55.67 million

Total debt = total asset-total equity

= 110million - 55.67

= $54.34 million

The debt ratio = total debt/total assets

= 54.33/110

= 0.4939

= 49.39%

49.39% is the firms debt ratio.

If you were a loan officer evaluating a small business credit application for a loan and you wanted to ensure that the applicant had more than sufficient cash flow to pay off its existing debt, the applicant's cash-flow-to-debt ratio would have to be greater than:_______

a. the TIE ratio.
b. peer average ratio.
c. the interest rate on the debt.
d. zero.
e. one.

Answers

Answer:

c. the interest rate on the debt.

Explanation:

The rate of interest on the debt is the amount i.e. payable to the firm on the regular basis. Also the firm have the more balance so that it ensures that they are free fro any default risk

Therefore according to the given situation, it is mentioned that the applicant had more than the enough cash flow so that he pay off the existing debt

Therefore the cash flow to debt ratio would be higher than the interest rate on the debt

hence, the option c is correct

Hello thank you so much for your help so kinda a long question here (multiple parts).
2. The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves.
Recall, to calculate checkable deposits you have to add the original checkable deposits to the new deposit. To calculate required reserves for the deposits, you have to multiply the required reserve ratio (decimal from) by checkable deposits. To calculate excess reserves, you will subtract required reserves from actual reserves.
2.1. What level of excess reserves does the bank now have?



2.2. Complete the table below for the Third National Bank. You have to distinguish between a bank's assets and bank's liabilities.
The figures in the table below are for the Third National Bank. All figures are in thousands of dollars. (Table/chart/graph) normally goes here)

2.3. What is the total assets of this bank? Explain the basics of this bank’s balance sheet.

2.4.If the required reserve ratio for the Third National Bank is 10 percent, what is the monetary multiplier?
(helpful stuff)Recall, to calculate you have to use the formula: Monetary Multiplier = 1÷Required Reserve Ratio. The money multiplier is a key measure in banking that helps to predict the money supply that will be available to drive economic growth. As you can see from the formula, if the reserve requirement is 20%, the money multiplier will be 1 divided by 0.2, which is 5. We can then use the money multiplier multiplied by the excess reserves to determine the maximum checkable-deposit creation that will be provided by the new money entering the system.




2.5. If the monetary multiplier is 4, what is the required reserve ratio? Describe how and identify by what amount the Third National Bank can create money in the economy.
(helpful stuff)Recall that, generally, bank creates money in a typical economy by making loans. The Fed sets the reserve requirement (the required reserve ratio) that directly affects the amount of money creation.

Answers

Answer:

it is too long don't understand sorry

Which is the most accurate definition of body language?
inappropriate comments about a coworker's size or shape
nonverbal communication of a person's thoughts and attitudes
slang words used to discuss people who aren't in the room
the range of words a person uses in verbal communication​

Answers

Answer:

nonverbal communication of a person's thoughts and attitudes

Explanation:

I think

Neoclassical economists focus on the economy ________. a. in the long-run b. in the short-run c. when it is experiencing a prolonged recession d. at the natural rate of unemploymen

Answers

Answer: in the long run.

Explanation:

Neoclassical Economics focuses on the economy in the long run. According to the Neoclassical Economics, the aim of the government should be on how to control inflation in the economy and also on the long term growth of the economy.

They believe that government should worry less on certain issues such as cyclical unemployment as this is a short term phenomena.

Noncompensatory stock option plans have all of the following characteristics except:__________

a. participation by substantially all full-time employees who meet limited employment qualifications.
b. equal offers of stock to all eligible employees.
c. a limited amount of time permitted to exercise the option.
d. a provision related to the achievement of certain performance criteria.

Answers

Answer: d. A provision related to the achievement of certain performance criteria

Explanation:

While compensatory plans are used in order to compensate the employees of a particular company, the noncompensatory stock option is one whereby the employees of a company are allowed to purchase the stock of that company at a particular price t a specific price and at a particular time period.

Some of its characteristics include:

• participation by substantially all full-time employees who meet limited employment qualifications.

• equal offers of stock to all eligible employees.

• a limited amount of time permitted to exercise the option.

Option D that "provision related to the achievement of certain performance criteria" isn't a characteristics. Therefore, D is the answer.

On January 1, 2018, Sanderson, Inc. acquired a machine for $1,110,000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $91,000. What is the book value of the machine at the end of 2019 if the company uses the straight-line method of depreciation? Group of answer choices $666,000 $702,400 $611,400 $665,996

Answers

Answer:

$702,400

Explanation:

Calculation for the book value of the machine at the end of 2019

First step is to calculate the Depreciation using the straight-line method

Using this formula

Depreciation= (Cost - Residual value) / Useful life

Let plug in the formula

Depreciation = ($1,110,000 - $91,000) / 5

Depreciation= $203,800

Last step is to calculate Book value

Machine Book value = $1,110,000 - $203,800 - $203,800

Machine Book value = $702,400

Therefore the the book value of the machine at the end of 2019 will be $702,400

Yields on short-term bonds tend to be more volatile than yields on long-term bonds. Suppose that you have estimated that the yield on 20-year bonds changes by 10 basis points for every 21-basis-point move in the yield on 5-year bonds. You hold a $2.1 million portfolio of 5-year maturity bonds with modified duration 4 years and desire to hedge your interest rate exposure with T-bond futures, which currently have modified duration 9 years and sell at F0 = $70. How many futures contracts should you sell? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)

Answers

Answer:

67

Explanation:

thebyield is good

Cash flows from operating activities include:__________.a) paying principal to lenders. b) changes in accounts receivable. c) purchases of equipment. d) proceeds from stock issuance.

Answers

Answer:

it is flowatational

Explanation:

Cash flows from operating activities include:flowatational.a) paying principal to lenders. b) changes in accounts receivable. c) purchases of equipment. d) proceeds from stock issuance.

McDonald's is a major company in the restaurant business

Answers

If the question is tru or false then true

Sand Point Corporation's common stock recently paid a dividend of $1.50. Investors require a 16% rate of return on this stock. Sand Point earns a 30% return on equity. The firm pays 60% of its earnings as dividends, and reinvests 40% of earnings in the firm. What is the value of the stock

Answers

Answer: $42

Explanation:

Value can be found using the Gordon Growth model;

= (Current dividend * (1 + Growth rate)) / ( required return - growth rate)

Growth rate =  Retention ratio * Return on equity

= 40% * 30%

= 12%

Value = (1.50 * 1.12)/ ( 16% - 12%)

= $42

Last year's asset turnover ratio was 2.0. Sales have increased by 25% and total assets have increased by 10% since that time. What is the current asset turnover ratio?

a. 1.82
b. 2.05
c. 2.15
d. 2.27

Answers

Answer: d. 2.27

Explanation:

Asset Turnover = Total sales / Average Assets

Last years turnover ratio was 2.0 so assume Sales were $20 and Assets were $10 which would give the turnover of 2.0

The new turnover would be;

= (20 * 1.25)/(10 * 1.1)

= 25/11

= 2.27

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