Business, 23.01.2020 18:31 cdyshaylia55
Assume the economy is in recession and real gdp is below full employment. themarginal propensity to consume (mpc) is 0.90, and the government follows keynesianeconomics by using expansionary fiscal policy to increase aggregate demand (totalspending). if an increase of $1,000 billion aggregate demand can restore full employment, the government should:
a. increase spending by $100 billion.
b. decrease spending by $790 billion.
c. increase spending by $1,000 billion.
d. increase spending by $250 billion.
Answers: 2
Business, 22.06.2019 09:40
Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?
Answers: 1
Business, 22.06.2019 12:10
Compute the cost of not taking the following cash discounts. (use a 360-day year. do not round intermediate calculations. input your final answers as a percent rounded to 2 decimal places.)
Answers: 1
Business, 22.06.2019 15:20
Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?
Answers: 2
Business, 23.06.2019 02:00
What percentage of hard rock's profit is derived from retail shop sales?
Answers: 1
Assume the economy is in recession and real gdp is below full employment. themarginal propensity to...
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