Which of the following is true of the multiplier: A) It is larger or higher than 1 when unemployment is below the natural rate of unemployment. That is government is spending increases or tax decreases have less effect when the economy is doing well. B) It is smaller or below 1 when unemployment is below the natural rate of unemployment. That is government spending increases or tax decreases have less effect when the economy is doing well. C) It is larger or higher than 1 when unemployment is below the natural rate of unemployment. That is government spending increases or tax decreases have less effect when the economy is doing worse. D) It is below or less than 1 when unemployment is below the natural rate of unemployment. That is government spending increases or tax decreases have greater effect when the economy is doing well.

. Complete the following:

a. If the tax multiplier is -1, then the marginal propensity to save is _________ the marginal propensity to consume.

b. If the government spending multiplier is 8, then the marginal propensity to save equals______.

c. If the marginal propensity to consume is two times the marginal propensity to save, then the government spending multiplier equals _______.

d. If the marginal propensity to save is 0.5, then the tax multiplier equals _______.

e. If the marginal propensity to save increases by 10 percent, then the government spending multiplier ________.

f. If the marginal propensity to consume goes from 0.8 to 0.85, then the tax multiplier _________.

g. If the tax multiplier increases (in absolute value) from -1 to -2, this means that the marginal propensity to consume has ______ relative to the marginal propensity to save.

h. If the government spending multiplier decreases from 5 to 4, this means that the marginal propensity to save has _______.

A survey by Walmart found that people spend on average $26 on each walk-in shopping. Assume the standard deviation is $4.

1. a) Find the z-score of spending $31.8 ?

2. b) Find P(X > 27) using the first method (Z-score table). Interpret the result.

3. c) Find P(X > 27) using the second method (TI 83/84 calculator).
   Show all work by drawing the interval on the Normal Distribution curve and indicating the lower and upper values.

4. d) Find the percentage of people who spend from 19 to 30 dollars Use the first method (Z-score table).

5. e) Find the percentage of people who spend from 19 to 30 dollars.
   Use the second method (TI 83/84 calculator). Show all work by drawing the interval on the Normal Distribution curve and indicating the lower and upper values.

1. These items are taken from the financial statements of Grouper Corporation for 2022.

Prepare a retained earnings statement for the year ended December 31, 2022. (List items that increase retained earnings first.)

2. You are provided with the following information for Ayayai Enterprises, effective as of its April 30, 2022, year-end.

Prepare a retained earnings statement for Ayayai Enterprises for the year ended April 30, 2022. (List items that increase retained earnings first.)

3. These financial statement items are for Pharoah Corporation at year-end, July 31, 2022.

Prepare an income statement for the year. Pharoah Corporation did not issue any new stock during the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Suppose the MPC = .5 when government purchases decrease by $200 billion. How much and in which direction would the aggregate demand curve shift as a result of the shock and all rounds of the multiplier process?

Suppose the MPC = .75 when the stock market values increase causing consumption spending to increase by $50 billion. How much and in which direction would the aggregate demand curve shift as a result of the shock and all rounds of the multiplier process?

Higher interest rates in the U.S. cause

When the U.S. dollar appreciates in the foreign exchange market,

The condensed income statement for the Oriole and Paul partnership for 2020 is as follows.

A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.

Oriole has proposed a plan to get the partnership “out of the red” and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Oriole estimates that sales volume will increase by 25%. What effect would Oriole’s plan have on the profits and the break-even point in dollars of the partnership? (Round intermediate calculations to 4 decimal places, e.g. 15.2515 and final answers to 0 decimal places, e.g. 2,520.)

Andre would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 10 percent annual before-tax return on a $860,000 investment. Andre’s marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andre will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. If Andre organizes SHO as an LLC, Andre will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. Further, he is eligible to claim the deduction for qualified business income. Assume that SHO will pay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation.

a. How much cash after taxes would Andre receive from her investment in the first year if SHO is organized as either an LLC or a C corporation? (Round intermediate calculations and your final answers to the nearest whole dollar.)

b. What is the overall tax rate on SHO’s income in the first year if SHO is organized as an LLC or as a C corporation? (Round intermediate calculations to the nearest whole dollar. Round your final answers to 2 decimal places.)

Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 14 percent annual before-tax return on a $710,000 investment. Andrea’s marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andrea will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC, Andrea will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. Further, she is eligible to claim the full deduction for qualified business income. Assume that SHO will pay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation. (Do not round intermediate calculations and round your final answers to the nearest whole dollar.)

a. How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or a C corporation?

b. What is the overall tax rate on SHO’s income in the first year if SHO is organized as an LLC or as a C corporation? (Round your final answers to 2 decimal places.)

[The following information applies to the questions displayed below.]

Sandra would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 9 percent annual before-tax return on a $530,000 investment. Sandra’s marginal income tax rate is 37 percent and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net investment income tax). If Sandra organizes BAL as an LLC, she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. BAL’s income is not qualified business income (QBI) so Sandra is not allowed to claim the QBI deduction. Assume that BAL will distribute all of its after-tax earnings every year as a dividend if it is formed as a C corporation. (Round your intermediate computations to the nearest whole dollar amount.)

a. How much cash after taxes would Sandra receive from her investment in the first year if BAL is organized as either an LLC or a C corporation?

b.What is the overall tax rate on BAL’s income in the first year if BAL is organized as an LLC or as a C corporation? (Round your final answers to 2 decimal places.)

Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 11 percent annual before-tax return on a $890,000 investment. Andrea’s marginal income tax rate is 35 percent and her tax rate on dividends and capital gains is 15 percent. Andrea will also pay a 3.8 percent net investment income tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC, Andrea will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. Further, she is eligible to claim the full deduction for qualified business income. Assume that SHO will pay out all of its after-tax earnings every year as a dividend if it is formed as a C corporation. How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or a C corporation?