Explain what occurs to aggregate expenditures
Suppose MPC is 0.8 initially. Households then change their behavior so that the MPC falls to 0.75. What happens to aggregate expenditures? Why?
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Describe what would cause government purchases function to increase. Will change in social security spending affect government purchases?
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Alpha Corporation has 25 million shares of common stock issued and outstanding. On August 31 board of directors voted $1.20 per share cash dividend to stockholders of record as of September 5, payable September 30.
What is meant by consumption function? Explain the graph of the consumption function and describe its shape.
Assume MPC is 0.8 initially. Households then change the behavior so that MPC falls to 0.75. What occurs to aggregate expenditures? Why?
A company raised $50,000 in cash by taking a one-year loan of $10,000 and a 5-year loan of $40,000. Which of the following is the correct journal entry to record this transaction?
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Baxtra, Inc. pays $20,000 in cash as interest to its lenders during 2005. According to U.S. GAAP, in which section of the statement of cash flows would this payment be included?
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