Suppose that Congress enacts a major tax increase. At the same time, the Federal Reserve uses monetary policy in such a way that the combined effect of the tax increase and the monetary policy is that GDP does not change at all. Based on this information, explain clearly what the overall (short-run) effect?

Answers

Answer 1

Answer:

Since GDP does not change, it means that Federal Reserve System undertook expansionary monetary policy to counteract the contractionary fiscal policy.

a. Investment - Expansionary monetary policy means fall in interest rate, so investment would rise.

b. The net effect would be that AD curve would not have changed (since output is constant), so price level remains the same.

c. Government would get surplus as government spending is same but tax revenue rose.


Related Questions

Please tell me the right answer.. if i fail one semester, and i pass the other, then do i pass the grade? Please tell me i need to know :\

Answers

Answer:

okay whats the question I help you

Explanation:

also i need help with my math hw too lol

no you dont you would have to retake a semester next year or take the course over the summer

In the economy represented by the graph, which set of economic measures is
most likely present at point B in the business cycle?
The Business Cycle
А
с
Production output
D
B
Time
O A. The steady growth line has started to decline.
O B. The unemployment rate is at its lowest point.
O c. Gross domestic product is at its lowest point.
O D. The economy has started a period of recession.

Answers

The economy represents by the graph is a set of measures that is most likely to occur in the business cycle are Gross domestic product is at its lowest point. Thus option C is correct.

What are economic measures?

The economic measures are those that economist use for measuring the economy of a country and include the GDP, unemployment, and inflation. The GDP is the most important measure and refers to the business cycle. As per the graph, the GDP is at the lowest point.

Find out more information about the economic indicator.

brainly.com/question/903754

Answer: the unemployment rate is at its lowest point

Explanation:

just took the test

In designing health promotion efforts, it is important to set clear goals and measure how successful you are compared to the money and time you invest. This is known as:__________.
a. Objectivity
b. Diffusion of innovations
c. Accountability
d. Two-step flow

Answers

Answer:

c. Accountability

Explanation:

This is known as accountability. In other words its making sure that you are holding yourself accountable for doing what you need to do and making sure that your efforts are not for nothing. This is done by staying on top of your choices and adjusting your decisions so that the money and time you invest are paying off with and pushing you towards the goals that you have set forth.

Carolyn has an AGI of $38, 400 (all from earned income), two qualifying children, and is filing as a head of household. What amount of earned income credit is she entitled to?
a) $4.256
b) $5, 572
c) $3, 305
d) $1, 316
e) $0

Answers

Answer:

d) $1, 316

Explanation:

Particulars                    Amount

Maximum Credit           $5,572

Phase out limit              $4,256   (38,400 - 18,190)*21.06%

Earned Income Credit Entitled to = Maximum Credit - Phase out limit

Earned Income Credit Entitled to = $5,572 - $4,256

Earned Income Credit Entitled to = $1,316

Explain the actions the FED should take if it wanted to move from a point on the short-run Phillips curve representing high unemployment and low inflation to a point representing lower unemployment and higher inflation.

Answers

Answer:

The short run Phillips curve states that there is an inverse relationship between unemployment and inflation in the short run.

Since unemployment is high and the inflation rate is low, in order for the FED to decrease unemployment and increase inflation it must decrease the interest rate. That way, the economy should kick off and start growing which should decrease unemployment and at the same time will increase inflation.

On January 1, 2016, Cobb Co. received, for the sale of a parcel of land, a ten-year note receivable having a face amount of $2,000,000 and a stated interest rate of 8% payable annually each December 31. The market rate of interest for this type of note is 10%. Present value factors are as follows: At 8% At 10% Present value of 1 for 10 periods 0.46319 0.38554 Present value of an ordinary annuity of 1 for 10 periods 6.71008 6.14457

Answers

Answer: $‭1,754,211

Explanation:

8% of $2,000,000 will be payable every year for 10 years;

= 2,000,000 * 8%

= $160,000

The amount received from selling the land is;

= Present value of interest payable annually + Present value of Note

= (160,000 * Present value interest factor of annuity, 10 years, 10%) + (2,000,000 * present value interest factor, 10 years, 10%)

= (160,000 * 6.14457) + (2,000,000 * 0.38554)

= $‭1,754,211

Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable$40,000 $36,000 Merchandise inventory$28,000 35,000 Net sales 190,000 186,000 Cost of goods sold 114,000 108,000 Total assets 425,000 405,000 Total shareholders' equity 240,000 225,000 Net income 32,500 28,000 Hulkster's 2021 profit margin is (rounded): 17.1%. 13.5%. 4.5%. 7.6%.

Answers

Answer:

Hulkster's 2021 profit margin is:

17.1%.

Explanation:

a) Data and Calculations:

                                                   2021          2020

Accounts receivable              $40,000     $36,000

Merchandise inventory         $28,000       35,000

Net sales                                190,000      186,000

Cost of goods sold                 114,000      108,000

Total assets                          425,000     405,000

Total shareholders' equity  240,000     225,000

Net income                            32,500        28,000

Profit margin = net income/net sales * 100

= $32,500/$190,000 * 100

= 17.1%

b) The profit margin of 17.1% indicates that Hulkster Company has generated an income of 17.1 cents for each dollar of sales.  It shows the company's income performance with relation to the net sales revenue.  It is a ratio of the net income expressed as a percentage of the sales.

On July 1, Smith Company borrowed $430,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $64,083. What amount of interest expense will be included in the first annual payment?
a. $29,683
b. $34,400
c. $400,317
d. $43,000
e. $64,083

Answers

It should be e $64,083

right decision in right time get success in our life?​

Answers

Answer:

You are the only person who get's to decide if you are happy or not- Do not put you're happiness into the hands of someone else. Do not make it contingent their acceptance of you, or there feelings for you. At the end of each day , it doesn't matter if someone dislikes you, or if someone doesn't want to be with you. All that matters is that you are happy with the person you are becoming. All that matters is that you like yourself, that you are proud of what you put out into the world. Never forget that you are in charge of you're joy, and of you're worth. You get to be you're own validation. Please never forget that!

Heridan Company is considering the following alternatives: Alternative AAlternative B Revenues$64000$72000 Variable costs 38400 38400 Fixed costs 10000 16000 What is the incremental profit?

Answers

Answer:

$2,000

Explanation:

To get the incremental profit, we would compute the profit for each alternatives and then subtract .

Alternative A

Incremental profit

= Revenues + Variable costs - Fixed costs

= $64,000 + $38,400 - $10,000

= $92,400

Alternative B

Incremental profit

= Revenues + Variable costs - Fixed costs

= $72,000 + $38,400 - $16,000

= $94,400

Incremental profit = Alternative B - Alternative A

Incremental profit = $94,400 - $92,400

Incremental profit = $2,000

Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2018, Chez Fred's credit sales and collections were $125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2018, if $180 in accounts receivable were written off during 2018 and if the allowance account had a balance of $750 on December 31, 2018

Answers

Answer:

The balance of accounts receivable on January 1, 2018 is $31,180.

Explanation:

The following are given in the question:

Percentage of allowance for uncollectible accounts = 3%

Credit sales = $125,000

Collections = $131,000

Amount written off = $180

Therefore, we have:

Account receivable on 31 December 2018 * 3% = $750

Account receivable on 31 December 2018 = $750 / 3% = $25,000

Accounts receivable on 01 January 2018 = Account receivable on 31 December 2018 - Credit sales + Collections + Amount written off = $25,000 - $125,000 + $131,000 + $180 = $31,180

Therefore, the balance of accounts receivable on January 1, 2018 is $31,180.

dover compnay deposits 30000 with second national bank in an account earning interest at 5% per annum semi annualy. how much will dover have in the account after 5 years if interest is reinvested

Answers

Answer:

$38,402

Explanation:

Calculation for How much will Dover have in the account after five years if interest is reinvested

First step is to use Financial calculator to find

the Future value factor of (2.5%, 10 years)

Future value factor of (2.5%, 10 years)=1.28008

Now let calculate Future value using this formula

Future value = Principal *Future value factor

Let plug in the formula

Future value= $30,000 * 1.28008

Future value=$38,402

Therefore How much will Dover have in the account after five years if interest is reinvested is $38,402

A manual press costs $16,000, and it will be scrapped after 10 years. Compute the depreciation and book value for the first two years using 100% bonus depreciation.

Answers

Answer and Explanation:

The computation of the depreciation and the book value for the first two years would be

Depreciation for Year 1

= 100% Bonus + regular depreciation

= $16,000 + $16,000 ÷ 10 years

= $17,600

And,

Book value year 1 is

= $16,000 - $1,600

= $14,400

Now

Depreciation for Year 2 is

= Regular depreciation

= $1,600

And,

Book value year 2 is

= $14,400 - $1,600

= $12,800

Bonita Company's inventory records show the following data:

Units Unit Cost
Inventory, January 1 10900 $8.00
Purchases: June 18 8700 8.10
November 8 5700 5.00

A physical inventory on December 31 shows 5700 units on hand. Under the FIFO method, the December 31 inventory is:_______

Answers

Answer:

$28,500

Explanation:

FIFO will give the same result whether you use perpetual or periodic system.

Ending Inventory = Units Left × Earliest Price

Therefore,

Ending Inventory = 5700 units × $5.00

                             = $28,500

If marginal cost is above average total cost,
A Average total cost is rising
B Average total cost is falling
C Average total cost is at its minimum
D Average total cost is at its maximum

Answers

Answer:

Average total cost is rising

The answer is A ! Hope this helps

Asset C3PO has a depreciable base of $16.5 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method?
A. $ 4.5 million.
B. $8.25 million.
C. $ 12 million.
D. None of these is correct.

Answers

Answer:

C. $12 million.

Explanation:

The computation of the  accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method is given below:

Accumulated depreciation is

= $16.5 million × [(10 + 9 + 8 + 7 + 6) ÷ 55]

= $12 million

hence, the accumulated depreciation be at the end of year five years is $12 million

Therefore the correct option is c.

Terrapins has a bond issue outstanding with nine years remaining to maturity, a coupon rate of 10% with interest paid semi-annually, and a par value of $1,000. If the current market price of the bond issue is $814.45, what is the yield to maturity?

Answers

Answer:

the answer is $345.98.

Explanation:

hope it helps you

How much money should be deposited today in an account that earns 3 %compounded semiannually so that it will accumulate to $ 13,000 in three​ years?

Answers

Answer:

PV= $11,889.05

Explanation:

Giving the following information:

Future Value (FV)= $13,000

Number fo periods (n)= 3*2= 6 semesters

Interest rate (i)= 0.03/2= 0.015

To calculate the initial deposit, we need to use the following formula:

PV= FV/(1+i)^n

PV= 13,000 / (1.015^6)

PV= $11,889.05

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $140,000 and would decrease the current variable costs of $80 by $10 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $240,000 and current break-even units are 2,000. If Forrester purchases this new equipment, the revised break-even point in units would:

Answers

Answer:

Break-even point in units= 2,800

Explanation:

Giving the following information:

Fixed csots= $140,000

Unitary variable cost= 80 - 10= $70

Selling price per unit= $120

To calculate the new break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 140,000 / (120 - 70)

Break-even point in units= 2,800

Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 4.5%/year compounded monthly. If the future value of the annuity after 11 years is $55,000, what was the size of each payment?

Answers

Answer:

The size of each payment was $322.78.

Explanation:

This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value of the amount after 11 years = $55,000

M = Monthly payment = ?

r = Monthly interest rate = 4.5% / 12 = 0.045 / 12 = 0.00375

n = number of months = 11 years * 12 = 132

Substituting the values into equation (1) and solve for M, we have:

$55,000 = M * (((1 + 0.00375)^132 - 1) / 0.00375)

$55,000 = M * 170.394706737074

M = $55,000 / 170.394706737074

M = $322.779979808101

Rounding to 2 decimal places, we have:

M = $322.78

Therefore, the size of each payment was $322.78.

If a trader buys an option at an implied volatility of 10%, and plans to delta hedge it, over the life of the option she hopes realized volatility will be:

Answers

Answer:

b. lower than 10%

Explanation:

Missing word "a. higher than 10%, b. lower than 10%, c. if its three month option then she hopes its 10/3, d. irrelevant where realized will be"

If a trader buys an option at an implied volatility of 10%, and plans to delta hedge it, over the life of the option she hopes realized volatility will be lower than 10%. When hedging implied volatility through delta hedging is done, it means that the trader is expecting that volatility will decline and it has taken the position on the the downside of the implied volatility as it is reflected by the delta hedging. Delta hedging is not about betting on the upside of implied volatility.

Biogenetics, Inc. plans to retain and reinvest all of their earnings for the next 30 years. Beginning in year 31, the firm will begin to pay a $30 per share dividend. The dividend will not subsequently change. Given a required return of 18%, what should the stock sell for today?

Answers

Answer:

the stock sell for today is $1.16

Explanation:

The calculation of the stock sell for today is as follows;

Value after year 31 is

= (D31 ÷ Required return)

= $30 ÷ 0.18

= $166.666667

Now the current value is  

= Future dividend and value × Present value of discounting factor(rate%,time period)

= $30 ÷ 1.18^31 + $166.666667 ÷ 1.18^31

= $1.16

Hence, the stock sell for today is $1.16

We simply applied the above formula so that the correct value could come

And, the same is to be considered

The owner of a real estate office prepared a cash flow budget for the coming month. The beginning cash balance was $1,500.
Projected revenue and costs are:
• revenue of $5,000
• supply costs of $1,000
• staff payroll of $2,500
• rent of $1,000
• insurance of $100
Match the dollar amount to the correct line item on a cash flow budget:
non

Answers

Answer:

I need to put middle school mode on

Kim's Bridal Shoppe has 10,200 shares of common stock outstanding at a price of $36 per share. It also has 215 shares of preferred stock outstanding at a price of $87 per share. There are 520 bonds outstanding that have a coupon rate of 5.5 percent paid semiannually. The bonds mature in 17 years, have a face value of $1,000, and sell at 93 percent of par. What is the capital structure weight of the common stock?

Answers

Answer:

26.43 %

Explanation:

The Capital Structure is based on  the Market Weight of the Sources of Finance as shown below :

Equity market value = Number of shares × price/share

Equity market value  = 10,200 ×  $36

Equity market value = $367,200

Current debt value = Number of bonds × price/bond

Current debt value = 520 × (1930)

Current debt value = $1,003,600

Preferred stock value = Number of shares × price/share

Preferred stock value = 215 ×  $87

Preferred stock value = $18,705

Total capital = Common equity value + Debt value + Preferred stock value

Total capital = $367,200 + $1,003,600 + $18,705

Total capital = $1,389,505

Weight of Equity = Equity value / Total capital

Weight of Equity  = $367,200 / $1,389,505

Weight of Equity = 26.43 %

Tell me about a time when you made a mistake.. How did you find it and what did you do to correct it?

Answers

Answer:

When I first became an assistant manager of a sales branch, I tried to take on everything myself, from the day-to-day operations of the branch to making all of the big sales calls. I quickly learned that the best managers know how to delegate effectively so that work is done efficiently. Since then, I have won numerous awards for my management skills, and I believe a lot of this has to do with my ability to delegate effectively.

Consider an asset with a beta of 1.2, a risk-free rate of 4.4%, and a market return of 12.4%. What is the reward to risk ratio?

Answers

Answer: 8%

Explanation:

Reward to risk ratio = (Expected return - Risk free rate) / Beta

Expected return = Risk free rate + Beta * ( Market return - Risk free rate)

= 4.4% + 1.2 * (12.4% - 4.4%)

= 14%

Reward to risk ratio = (14% - 4.4%) / 1.2

= 8%

A perpetual bond with a par value of $1,000 and a coupon rate of 7.75% has a current market price of $900. What is its yield to maturity

a. 9.32%
b. 8.33%
c. 7.92%
d. 9.45%
e. 8.61%

Answers

Answer: e. 8.61%

Explanation:

This is a perpetual bond so the price is calculable by;

Price = Coupon / Yield to Maturity

Coupon = 7.75% * 1,000

= $77.50

900 = 77.50/ YTM

900 * YTM = 77.50

YTM = 77.50/900

= 8.61%

Brace Corporation uses direct labor-hours as the cost driver in its normal costing system. Brace budgeted that it would use 21,600 direct-labor hours during the year. At the end of the year, actual direct labor-hours for the year were 20,400 hours, the actual manufacturing overhead for the year was $506,920, and Brace had $20,440 of underapplied overhead. The budgeted manufacturing overhead must have been: Round to the nearest dollar.

Answers

Answer:

total estimated overhead costs for the period= $515,095.2

Explanation:

First, we need to calculate the allocated overhead:

Under/over applied overhead= real overhead - allocated overhead

20,440 = 506,920 - allocated overhead

allocated overhead= $486,480

Now, we can determine the predetermined overhead rate:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

486,480= Estimated manufacturing overhead rate*20,400

Estimated manufacturing overhead rate= 486,480/20,400

Estimated manufacturing overhead rate= $23.847 per direct labor hour

Finally, the estimated overhead for the period:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

23.847= total estimated overhead costs for the period/21,600

total estimated overhead costs for the period= 21,600*23.847

total estimated overhead costs for the period= $515,095.2

Four years ago, Lyle Mercer was injured in a railroad accident and sued the railroad for damages. The jury required the railroad to pay $600,000 compensation for his physical injuries, $150,000 for lost wages during his long recuperation, and $1,000,000 punitive damages. How much of the $1,750,000 settlement is included in Lyle's gross income?

Answers

Answer and Explanation:

The amount that settled is as follows

The total amount is $1,750,000

Out of which

The amount of

= $1,000,000 + $150,000

= $1,150,000

This would be involved in the AGL of L and the $600,000 would not be involved in the gross income as the taxpayer got injured by the other party act

So, the same is to be considered

An appliance repair shop buys and uses about 4,212 fan motors annually. Holding cost is 27 dollars per motor per year, and ordering cost is 177 dollars per order. Determine the economic order quantity. Round your number to ZERO decimal point.

Answers

Answer:

15,251 units

Explanation:

The formula for Economic order quantity is;

EOQ = √2DS/H

Where,

D = Annual demand = 4,212

S = Ordering cost = $177

H = Holding cost = $27/4,212 = $0.00064102564

EOQ = √ 2 × 4,212 × $177 / $0.00064102564

EOQ = √ $1,491,048 / $0.00064102564

EOQ = √232603488.37

EOQ = 15,251 units

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