Determining the stimulative fiscal policy
Explain, with appropriate graphs, how a stimulative fiscal policy could end up causing crowding out based off of Loanable Funds theory. How might it not occur?
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This action is expected to increase the sales for Crunz by 50%. Both brands (Cruz and Zaturn) sell at the same price. Where should the company spend the $40 million and why?
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Due to the blemishes, it will be impossible to sell these units at the normal price. If the company wishes to sell them through regular distribution channels, what unit cost figure is relevant for setting a minimum selling price? Explain.
In a private closed economy (a) the marginal propensity to save is 0.25, (b) consumption equals income at $120 billion, and (c) the level of investment is $40 billion. What is the equilibrium level of income?
Find the total over- or underapplied (both fixed and variable) overhead. Would cost of goods sold be a larger or smaller expense item after the adjustment for over- or underapplied overhead?
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