1.  The government of an economy has increased its spending and its taxes by the same

amount. What is the effect on investment? Use the long-run model of the economy

developed in Chapter 3.

11. Why cut regulations from the supply-side perspective?

12. Why cut social spending and privatize services?

13. What happened to corporate competition during this period?

Use the loanable funds market to graphically analyze what happens to real interest rate and investment if government increases its spending. Also explain what is the crowding out effects

For this assignment, describe 5 reasons which contribute to mpulse buying. Additionally, based on the Tips for Impulse Spending, describe which of those tips you could use to guide you.

Question:

Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle.

State whether the following statement is true or false and explain:

According to the IS/LM model, an equal increase in government spending and taxes by $1bn cannot raise GDP by more than $1bn.

Samsung is spending $8 billion to try to gain an edge on other big tech companies that are piling into autos.

What do you think about Samsung's decision to invest in cars?

Baird Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:

Problem 14-23 Part 1

Required

October sales are estimated to be $300,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget.

The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts.

The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month’s cost of goods sold. However, ending inventory of December is expected to be $12,100. Assume that all purchases are made on account. Prepare an inventory purchases budget.

The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 percent in the following month. Prepare a cash payments budget for inventory purchases.

Budgeted selling and administrative expenses per month follow:

*The capital expenditures budget indicates that Baird will spend $119,400 on October 1 for store fixtures, which are expected to have a $21,000 salvage value and a two-year (24-month) useful life.

Use this information to prepare a selling and administrative expenses budget.

Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses.

Baird borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $13,000 cash cushion. Prepare a cash budget.

Required I

Required J

Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.)

Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.)

Chocolate, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 145,000 units requiring 620,000 direct labor hours. (Practical capacity is 630,000 hours.) Annual budgeted overhead costs total $802,600, of which $585,800 is fixed overhead. A total of 143,400 units using 619,200 direct labor hours were produced during the year. Actual variable overhead costs for the year were $275,800, and actual fixed overhead costs were $526,400. Required: a. Compute the fixed overhead spending and volume variances. b. Compute the variable overhead spending and efficiency variances.