Grace Stewart began the Stewart Answering Service in December. The firm provides services for professional people and is currently operating with leased equipment. On January 1, the assets and liabilities of the business were:
Cash 6400
Accounts Receivable 6900
Accounts Payable 1600
Notes Payable 1500
Common Stock 10200
Retained Earnings 0
The following transactions occurred during the month of January:
1 Paid rent on office and equipment for January, $1,800.
2 Collected $6,000 on account from clients.
3 Borrowed $3,000 from a bank and signed a note payable for that amount.
4 Billed clients for work performed on account, $12,500.
5 Paid $1,400 on accounts payable.
6 Received invoice for January advertising, $800.
7 Paid January salaries, $3,200.
8 Paid January utilities, $430.
9 Paid stockholders a dividend of $3,600 cash.
10 Purchased a printer (on January 31) for business use, $1,400,
11 Paid $30 to bank as January interest on the outstanding note payable.
Required
(a) Set up an accounting equation in columnar form with the following individual assets, liabilities, and stockholders' equity accounts: Cash, Accounts Receivable, Equipment, Accounts Payable, Notes Payable, Common Stock, and Retained Earnings. Enter the January 1 balances below each item. (Note: The beginning Equipment account balance is $0.)
(b) Show the impact (increase or decrease) of the January transactions on the beginning balances, and total all columns to show that assets equal liabilities plus stockholders' equity as of January 31.

In addition to making decisions that are not arbitrary and capricious, agencies must give fair notice select to those affected by its regulations.

Administrative agencies perform three main tasks: Executives are in charge of enforcing laws and regulations. Making Regulations is a quasi-legislative function. Adjudicating infractions of rules or regulations in a quasi-judicial setting.

Rulemaking is the policy-making process for the Federal government's Executive and Independent agencies. This method is used by agencies to draught and issue Rules (also known as "regulations"). The procedure is controlled by statutes such as the Administrative Procedure Act, among others.

Quasi-judicial action is described as an administrative agency action that[i]; ascertains particular facts, holds hearings, weighs evidence, and draws conclusions from the facts as the foundation for their official action.

The Administrative Procedure Act (APA) oversees how federal agencies create and publish rules. It covers provisions for posting proposed and final rulemaking notifications in the Federal Register.

To know more about Administrative agency visit:

https://brainly.com/question/28274991

#SPJ4

a The scatter diagram is attached .

b The correlation coefficient is 0.77. This indicates that there is a strong positive linear relationship between sales and earnings.

b The regression equation is y = 0.09x + 2.2. This equation can be used to predict earnings from sales.

d If a small company has $50.0 million in sales, the estimated earnings are $41.2 million.

Enter the data into a spreadsheet.

Company Sales (millions of dollars) Earnings (millions of dollars)

Papa John's International 89.2 18.6

Applied Innovation 18.2 4.4

Integracare 71.7 1.3

Wall Data 58.6 4.9

Davidson & Associates 46.8 4.6

Chico's FAS 42.0 2.6

Checkmate Electronics 36.0 2.2

Royal Grip 30.0 1.7

M-Wave 24.0 1.5

Serving-N-Slide 18.0 1.3

Daig 12.0 1.1

Cobra Golf 6.0 0.8

Step 2: Use the "Scatter" function to create a scatter diagram.

The scatter diagram shows that there is a positive linear relationship between sales and earnings.

Use the "Correlation" function to calculate the correlation coefficient.

The correlation coefficient is 0.77. This indicates that there is a strong positive linear relationship between sales and earnings.

Use the "Regression" function to calculate the regression equation.

The regression equation is y = 0.09x + 2.2. This equation can be used to predict earnings from sales.

Substitute 50 for x in the regression equation to calculate the estimated earnings.

When x = 50, y = 0.09 * 50 + 2.2 = 41.2.

Therefore, if a small company has $50.0 million in sales, the estimated earnings are $41.2 million.

Learn more about corellation on

https://brainly.com/question/28175782

#SPJ1

The first thing Cristina should do to create a more standards-oriented environment in her classroom is to create positive relationships with her students.

It is necessary for the teacher to be organized according to the methodologies required by the institutional standard, as standardization generates the systematization of processes so that student learning and development occurs in a similar way, without bias, for example.

Therefore, the standardization of teaching helps in conformity, structuring and systematization, essential for the formation of relationships and educational culture favorable to social, cognitive and academic development.

Find out more about educational institutions here:

https://brainly.com/question/26015261

#SPJ1

Answer:

The correct answer would be "Both domestic competition and international competition." Alibaba's labyrinth-like internal structure is indeed complex and allows the company to rapidly integrate product offerings while preserving management flexibility. This structure is designed to counter competition, both from domestic companies within China and international companies outside of China. By having a complex and adaptable internal structure, Alibaba can navigate the competitive landscape more effectively and seize opportunities in various markets.

\(\huge{\mathfrak{\colorbox{black}{\textcolor{lime}{I\:hope\:this\:helps\:!\:\:}}}}\)

♥️ \(\large{\underline{\textcolor{red}{\mathcal{SUMIT\:\:ROY\:\:(:\:\:}}}}\)

Using FIFO, the cost assigned to ending inventory is $8,296, and the cost assigned to the cost of goods sold is $20,774.

FIFO simply means First-in, First-Out.  

FIFO is a cost flow assumption that assigns cost to the cost of goods sold based on the understanding that the first goods brought into the store are the first to be sold.

Note that under the perpetual inventory system, the cost of goods sold is determined at each sales transaction.

           Activities            Units Acquired at Cost   Units Sold at Retail

Jan. 1   Beg. inventory   285 at $13.40     $3,819

Jan. 10 Sales                                                          250 units $43.40 $10,850

Mar. 14 Purchase           470 units $18.40 8,648

Mar. 15 Sales                                                          400 units $43.40   17,360

July 30 Purchase         485 units $23.40 11,349

Oct. 5   Sales                                                         460 units $43.40   19,964

Oct. 26 Purchase         185 units $28.40 5,254

Totals                         1,425 units         $29,070  1,110 units              $48,174

Ending inventory          315 (1,425 - 1,110)

Ending inventory = $8,296 (185 x $28.40 + 130 x $23.40)

Cost of goods sold = Cost of Goods Available for Sale - Cost of Ending Inventory)

= $20,774 ($29,070 - $8,296)

$3,350:    250 units $13.40

$7,185:     400 units ($13.40 x 35) + ($18.40 x 365)

$10,239:  460 units ($18.40 x 105) + ($23.40 x 355)

$20,774  1,110 units

Learn more about the FIFO method under the perpetual inventory system at https://brainly.com/question/18685450

#SPJ1

           Activities            Units Acquired at Cost   Units Sold at Retail

Jan. 1   Beg. inventory   285 at $13.40     $3,819

Jan. 10 Sales                                                               250 units $43.40

Mar. 14 Purchase           470 units $18.40 8,648

Mar. 15 Sales                                                              400 units $43.40

July 30 Purchase         485 units $23.40 11,349

Oct. 5   Sales                                                             460 units $43.40

Oct. 26 Purchase         185 units $28.40 5,254

Totals                         1,425 units         $29,070     1,110 units

Required Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Answer:    either a,b or c but probably c

Explanation:

The three rules below will help individuals achieve financial stability and security, which is critical for living a happy and stress-free life. They can learn new skills, enroll in courses, read books, and so on to increase their productivity levels.

Individuals must always make efforts to improve their productivity.  It's always a good idea to live within one's means, avoid unnecessary debt, increase productivity, and invest in oneself. In conclusion, the above three rules can be beneficial to anyone looking to achieve financial stability.

For more such questions on financial stability

https://brainly.com/question/11694378

#SPJ8

Answer:

coinsurance

Explanation:

Coinsurance refers to additional pay over standard health contract

Take a example

If your coinsurange is 30%

then for

100$ you have been paid 30$

Answer:

Option A- 4. Price discrimination

Option B - 1. Loss leader pricing

Option C - 2. Bait and Swtich

Option D - 3. Predatory pricing

Explanation:

Price discrimination is a form of unethical pricing strategy by the producer or supplier to attract consumers whereby similar commodities are traded at varying prices to different customers by the same producer. Hence, the perfect illustration is option A

Loss Leader Pricing is another form of unethical pricing technique whereby a commodity is sold or advertised by a producer promotes other sales of more high yield commodities. Hence, the best illustration is option B.

Bait and Switch is a form of illegal pricing strategy whereby the producer promotes commodities of lower cost to greater quality ratio, however, it is such a product tends to be elusive one potential buyer's approach. The perfect example is option C

Predatory pricing is an unethical pricing technique whereby the producer intentionally priced commodities produced such that other customers are unable to compete. The perfect example is option D.

If Lanark is currently generating 145 buses, it can generate about 180 units of wheat. .

b. The cost of 90 further wheat is 90.

c. The approximate per unit cost of an fresh auto is 54.

To determine the approximate quantum of wheat Lanark can produce if it's presently producing 145 buses , we need to find the matching value in the" Wheat" column. Grounded on the given table, we can see that the values in the" buses" column drop from left to right. thus, we need to find the combination where the number of buses is closest to 145, which is combination B. In combination B, Lanark can produce roughly 180 units of wheat.

We can find the cost of 90 further wheat by comparing the wheat values between combinations C and D, If Lanark is presently producing combination C. The wheat value in combination C is 315, and the wheat value in combination D is 405.

The difference between these two values represents the fresh wheat produced when moving from combination C to combination D. In this case, the difference is 405- 315 = 90. thus, the cost of 90 further wheat is the difference between the wheat values in combination C and D, which is 90.

we can determine the approximate per unit cost of an fresh auto by comparing the auto values between combinations D and E, If Lanark is presently producing combination D. The auto value in combination D is 127, and the auto value in combination E is 73.

The difference between these two values represents the drop in auto product when moving from combination D to combination E. In this case, the difference is 127- 73 = 54.

thus, the approximate per unit cost of an fresh auto is the difference between the auto values in combination D and E, divided by the drop in auto product, which is 54/ 1 = 54.

For more such question on cost. visit :

https://brainly.com/question/28147009

#SPJ8

Followership is the capacity and willingness of individuals to work collaboratively with a leader to achieve a common goal or purpose. It involves recognizing and respecting the authority and expertise of the leader, while also contributing one's own skills, knowledge, and ideas to the collective effort. Effective followership requires active engagement, commitment, and a willingness to share responsibility for the success of the group. Followership can take many forms, from providing support and feedback to the leader, to challenging assumptions and proposing alternative strategies. It is a critical component of effective teamwork, as well as of effective leadership, as leaders rely on followers to help implement their vision and achieve their goals.

While this answer may provide you with helpful infromation regarding your assignment, it is important to remember that using it verbatim could be seen as plaigiarism. To avoid this, it is best to cite your own sources, and put everything in your own words.

~~~Harsha~~~

Answer:

$2.85

Explanation:

Because wakon $4.95 have

dividend to $2.10

If the marginal costs of abatement for polluter 1 become equal to polluter 2, it does not impact the socially efficient level of pollution. The level is still determined by equating Marginal Damage with the Aggregate MAC.

To graph each function, we can plot MAC1 and MAC2 on a graph with the quantity of emissions (E) on the x-axis and the marginal abatement cost (MAC) on the y-axis.

For MAC1: MAC1 = 100 - 10E

For MAC2: MAC2 = 50 - 10E

To compute the aggregate MAC curve, we add the individual MAC curves together. So, Aggregate MAC = MAC1 + MAC2.

Aggregate MAC = (100 - 10E) + (50 - 10E) = 150 - 20E

Now, let's calculate the socially efficient equilibrium by setting the Marginal Damage (MD) equal to the Aggregate MAC.

MD = Aggregate MAC

30E = 150 - 20E

Simplifying the equation, we get:

50E = 150

E = 3

Therefore, the socially efficient equilibrium occurs when the quantity of emissions (E) is 3.

Now, let's calculate the net social costs of the policy when the government sets the pollution level at four units.

Net social costs = Aggregate MAC - MD

Net social costs = (150 - 20(4)) - (30(4))

Net social costs = 110 - 120

Net social costs = -10

The net social costs of this policy would be -10, indicating a net benefit to society.

If a technological change occurs that reduces the marginal costs of abatement for polluter 1 to that of polluter 2, it means that MAC1 will become equal to MAC2.

Setting MAC1 equal to MAC2:

100 - 10E = 50 - 10E

Simplifying the equation, we find that E can have any value, as both sides are equal.

Graphically, this change would mean that MAC1 and MAC2 become parallel lines on the graph, with the same slope and intercept. The socially efficient level of pollution would still be determined by equating MD with the aggregate MAC.

In conclusion, if the marginal costs of abatement for polluter 1 become equal to polluter 2, it does not affect the socially efficient level of pollution. The socially efficient level is still determined by equating the Marginal Damage with the Aggregate MAC, regardless of the marginal costs of individual polluters.

For more question on marginal visit:

https://brainly.com/question/14867207

#SPJ8

The pillars of accountability, transparency, good governance, and anti-corruption measures are crucial for addressing issues organization in South African government institutions.

One of the main points of support for tending to the current financial circumstances and the more extensive settings of fumble, delicate abnormalities, and misrepresentation in South African government organizations is responsibility.

This support point incorporates both individual and institutional responsibility, and it is fundamental for guaranteeing that those answerable for debasement and botch are viewed to be responsible.

Individual responsibility includes considering people liable for their activities, incorporating arraigning those associated with defilement and maladministration.

Institutional responsibility includes guaranteeing that administration foundations are straightforward, viable, and effective in their activities. This can incorporate measures like customary reviews, public detailing, and autonomous oversight.

Notwithstanding responsibility, different points of support that are fundamental for resolving these issues incorporate straightforwardness, great administration, and compelling enemy of defilement measures.

These points of support require a guarantee to transparency, decency, and uprightness from government authorities, as well as a readiness to resolve foundational issues and execute changes to reinforce administration and responsibility.

By and large, the mainstays of responsibility, straightforwardness, great administration, and hostile to defilement measures are critical for tending to the current financial circumstances and the more extensive settings of bungle, delicate anomalies, and extortion in South African government organizations.

Without these points of support set up, it will be challenging to reestablish public confidence in government and to advance feasible financial turn of events.

To learn more about organization in South African, refer:

https://brainly.com/question/1087822

#SPJ1

Answer:

$1,019.39

Explanation:

Just checked the answer and it was correct.

MRP determines the necessary materials and when they will be needed during the manufacturing process using data from the bill of materials (BOM), inventory data, and the master production schedule.

When businesses divide the transformation process into departments that group related processes, what is the term used?

Process-layout-using businesses. The transformation process is divided into departments that group related processes in a process layout. A metal fabrication facility, for instance, might comprise divisions for cutting, drilling, and polishing. A hospital might have an obstetrics unit, an X-ray unit, and so forth.

What distinguishes a business as a manufacturer or a service provider?

The five key distinctions between service and manufacturing organizations are the tangible nature of their output, production on demand or for inventory, production tailored to the needs of a specific customer, labor-intensive or automated operations, and the requirement for a physical production location.

To learn more about production from the given link.

https://brainly.com/question/16755022

#SPJ9

Answer:

the discount effect should be smaller for a change between 100 to 101, than for 1,000 to 1,001

Explanation:

The discount effect is basically how much do you need to lower your price (offer a discount) in order to sell one more unit. Generally, companies that sell larger amounts of units must offer larger discounts in order to sell additional units. That is why the discount effect should be larger if the total output is larger.

Based on the information given, the discount effect will be smaller for a change from 100 to 101 units than 1000 to 1001 units.

It should be noted that business mostly prefer to give discount when there's an increase in sales. In such a case, a higher quantity of products will command a higher discount then a lower quantity of product.

Therefire, the discount effect will be smaller for a change from 100 to 101 units than 1000 to 1001 units. The business will give a small discount for a small quantity of goods and vice versa.

Read related link on:

https://brainly.com/question/4298537

Journal Entry #1:

Debit: Wage Expense for $16,000

Credit: Cash for $13,650

Credit: Employee Income Tax Payable for $1,100

Credit: FICA Taxes Payable for $1,250

Explanation: The company records the wage expense for December and the payment of net cash due to employees after withholding taxes.

Journal Entry #2:

Debit: FICA Taxes Payable for $1,250

Credit: FICA Taxes Expense for $1,250

Explanation: The company records the payroll tax match for FICA taxes for December.

The action taken by a central bank which would reflect the expansionary monetary policy is the sale of treasury securities to banks and the lowering down of reserve requirements.

Options A and C are correct.

A central bank is referring to the largest bank that controls the regional and subordinate banks. It is the bank in which the commercial banks keep the needed reserve ratio. There are various policies being made by the central bank to monitor the monetary system like fiscal policy, monetary policy, economic policy, etc.

The central bank of the US country is the Federal Reserve that applied the expansionary monetary policy.  The three ways that are made by Federal Reserve in respect of this policy are by making the discount rates to be fallen down for every bank, by acquiring the securities being sold by the government in the market and by keeping the reserve ratio to the lowest so that commercial banks can easily maintain them.

Therefore, the explanations written in option A and C are correct.

Learn more about the expansionary monetary policy in the related link:

https://brainly.com/question/28038989

#SPJ5

Question's missing part:

The options are given as follows:

A) Selling treasury securities to banks to reduce the money supply

B) Raising the discount rate to provide less in loans to banks

C) Lowering the reserve requirements for all banks

D) Raising the interest that it pays to banks on the balance of their

reserves

Answer:

$687,100

Explanation:

Cost of Goods Manufactured = Raw Materials Used + Direct Labor + Factory Overhead +Beginning Work in Process - Ending Work in ProcessCost of Goods Manufactured = $298,500 + $132,000 + $264,000 + $118,500 - $125,900 =$687,100

HOPE IT HELPS MARK IT BRAINLIEST!!!!!!

The situation requires Janice to act honorably and competently. Not only is it immoral to take credit for another person's work, but it also damages the reputation and morale of the team. Here is a potential strategy for Janice, Recognize and value John's input; talk frankly and honestly about the problem with John; and work together to find a win-win solution.

1). Recognize and value John's contributions: Janice needs to recognize and value John's contributions, both the cost of the project and his efforts. Giving credit where credit is due is crucial.

2). Discuss the situation with John: Janice needs to be honest and transparent with John about her issue. She ought to acknowledge his efforts and the pressure he feels to live up to his employer's expectations.

3). Work together to find a solution: Janice and John can resolve the issue of monitoring the project status by coming up with alternatives that are advantageous to both parties. They can think about incorporating audience participation or noting that John attended the talk.

4). Ask the Elderly for Advice: If Janice is still unsure of the ideal position for her, she might ask her superiors or a workplace counsellor for help. He can receive guidance on how to resolve the issue morally while also upholding the expectations of his company

For more information "Case study "

https://brainly.com/question/28678194

You consent to designing the homes for this builder in exchange for receiving the listings once the buildings are completed,in return for getting the listings when the propertiesare finished.

Express Acceptance, Listing or buyer's agency agreements are the customary written contracts. The most acceptable and legally secure way to establish an agency partnership is through a written agreement.

An open dual agent in a real estate transaction represents both the buyer and the seller. Dual agents have a limited fiduciary duty to the buyer and seller clients in these partnerships.

To know more about designing visit :-

https://brainly.com/question/14035075

#SPJ1

The preparation of the Journal Entries to record the stock transactions of Wise Company is as follows:

1. Debit Cash $130,000

Credit Common Stock $70,000

Credit Additional Paid-in Capital- Common Stock $60,000

2. Debit Cash $216,000

Credit Preferred Stock $200,000

Credit Additional Paid-in Capital- Preferred Stock $16,000

3. Debit Treasury Stock $5,000

Debit Additional Paid-in Capital- Common stock $5,000

Credit Cash $10,000

4. Debit Cash $5,500

Credit Treasury Stock $2,500

Credit Additional Paid-in Capital- Common Stock $3,000

1. Cash $130,000 Common Stock $70,000 Additional Paid-in Capital- Common Stock $60,000

2. Cash $216,000 Preferred Stock $200,000 Additional Paid-in Capital- Preferred Stock $16,000

3. Treasury Stock $5,000 Additional Paid-in Capital- Common stock $5,000 Cash $10,000

4. Cash $5,500 Treasury Stock $2,500 Additional Paid-in Capital- Common Stock $3,000

Learn more about journalizing stock transactions at https://brainly.com/question/17439058

#SPJ1

Answer:

1. Stockholders invest $90,000 cash to start the business.

Dr Cash 90,000

    Cr Common stock 90,000

2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.

Dr Copy machines 400,000

    Cr Cash 118,000*

    Cr Notes payable 282,000

*Where did they get the extra cash from?

3. Purchased $5,500 paper supplies on credit.

Dr Supplies 5,500

    Cr Accounts payable 5,500

4. Cash received for photocopy services amounted to $8,400.

Dr Cash 8,400

    Cr Service revenue 8,400

5. Paid $500 cash for radio advertising.

Dr Advertising expense 500

    Cr Cash 500

6. Paid $800 on account for paper supplies purchased in transaction 3.

Dr Accounts payable 800

    Cr Cash 800

7. Dividends of $1,600 were paid to stockholders.

Dr Dividends 1,600

    Cr Cash 1,600

8. Paid $1,200 cash for rent for the current month.

Dr Rent expense 1,200

    Cr Cash 1,200

9. Received $2,200 cash advance from a customer for future copying.

Dr Cash 2,200

    Cr Unearned service revenue 2,200

10. Billed a customer for $500 for photocopy services completed.

Dr Accounts receivable 500

    Cr Service revenue 500

Answer: $252,000

Explanation:

Property worth $275,000, 4 weeks ago had 3 bedrooms and 3 bathrooms.

House to be appraised has 3 bedrooms and 2 bathrooms meaning it has one less bathroom than the other house.

Value of bathroom is $15,000 so;

= 275,000 - 15,000

= $260,000

House to be appraised was worth $260,000 4 weeks ago.

Prices have been reducing at $2,000 per week for four weeks.

= 2,000 * 4

= 8,000

Value of house = 260,000 - 8,000

= $252,000

Answer:

Why are indexing rules important when filing names alphabetically? ... Written rules provide a guide to a filer for determining the indexing units consistently. If filing is performed consistently and fast, accurate retrieval is more likely in an alphabetic file

Explanation:

hope this helps!!

Indexing helps the filer to list out the items in an order, which follows a particular system. Thus, the record will be stored in a particular filing segment for easy retrieval.

indexing rules are important when filing names alphabetically because they ensure consistency and accuracy in the organization of information in a manner that is easy to use and understand. By following a set of rules, users can easily locate a specific item, name, or file within a larger collection of data or materials.

Therefore, indexing rules are important when filing names alphabetically.

Learn more about indexing here,

https://brainly.com/question

#SPJ2

Mrs. Wyatt may or may not have been justified in her perception of the situation. It is possible that she felt that she was being ignored or treated unfairly, and that the bank employee was not taking her seriously.

Here are some factors that may have influenced Mrs. Wyatt's perception of the situation:

It is important to note that everyone experiences situations differently. What may seem like a minor inconvenience to one person could be a major source of frustration or anger for another. It is also important to remember that bank employees are human beings, and they are not perfect.

For such more question on justified:

https://brainly.com/question/28944491

#SPJ8

Answer:

Explanation:

a) To graph planned expenditure as a function of income, we need to use the Keynesian cross model. In this model, the planned expenditure (E) is equal to the sum of consumption (C) and planned investment (I), and is represented by the equation E = C + I. Given the consumption function C = 200 + 0.75*(Y - T) with T = 100 and I = 100, we can write the planned expenditure function as follows:

E = C + I

E = (200 + 0.75*(Y - 100)) + 100

E = 300 + 0.75Y - 75

E = 225 + 0.75Y

To graph this function, we plot E on the vertical axis and Y on the horizontal axis. The intercept on the vertical axis is 225, and the slope of the line is 0.75. The graph is a line that starts at the point (0, 225) and has a slope of 0.75.

b) To find the equilibrium level of income, we need to set planned expenditure equal to actual expenditure, which is equal to income (Y) in the Keynesian cross model. Thus, we have:

Y = E

Y = 225 + 0.75*Y

Solving for Y, we get:

Y = 900

Therefore, the equilibrium level of income is 900.

c) If government purchases increase to 125, the new planned expenditure function becomes:

E = C + I + G

E = (200 + 0.75*(Y - 100)) + 100 + 125

E = 425 + 0.75*Y

To find the new equilibrium income, we set planned expenditure equal to income (Y) again:

Y = E

Y = 425 + 0.75*Y

Solving for Y, we get:

Y = 1,300

Therefore, the new equilibrium income is 1,300. The multiplier for government purchases is given by:

Multiplier = 1/(1 - MPC)

where MPC is the marginal propensity to consume. In this case, MPC = 0.75, so the multiplier is:

Multiplier = 1/(1 - 0.75) = 4

d) To find the level of government purchases needed to achieve an income of 1,600, we need to use the government purchases multiplier formula:

Change in Y = Multiplier * Change in G

The "..." increase in income is 1,600 - 900 = 700. We want to know by how much government purchases must change to get this increase in income. We can rearrange the formula to solve for the change in government purchases:

Change in G = Change in Y / Multiplier

Change in G = 700 / 4

Change in G = 175

Therefore, the level of government purchases needed to achieve an income of 1,600 is 100 + 175 = 275. Taxes remain at 100 in this case.