A company has interest expense of $70,000, income taxes expense of $165,100, and net income of $299,000. The company's times interest earned ratio equals: Multiple Choice 7.63. 4.27. 6.63. 2.36. 0.13.
Answers
The company's times interest earned ratio equals approximately 7.63. This indicates that the company's operating income (EBIT) is 7.63 times higher than its interest expense.
The times interest earned ratio is a measure of a company's ability to cover its interest expenses with its operating income. It is calculated by dividing the company's earnings before interest and taxes (EBIT) by its interest expense.
Given:
Interest expense = $70,000
Income taxes expense = $165,100
Net income = $299,000
To calculate the times interest earned ratio, we need to find the EBIT first.
EBIT = Net income + Income taxes expense + Interest expense
EBIT = $299,000 + $165,100 + $70,000
EBIT = $534,100
Now, we can calculate the times interest earned ratio:
Times Interest Earned Ratio = EBIT / Interest expense
Times Interest Earned Ratio = $534,100 / $70,000
Times Interest Earned Ratio ≈ 7.63
The company's times interest earned ratio equals approximately 7.63. This indicates that the company's operating income (EBIT) is 7.63 times higher than its interest expense.
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Related Questions
In 2013, the Oakland A's were one of the hottest teams in baseball. They were regularly drawing "sellout" crowds, with many more fans wanting tickets. However, the A's did not sell all of the 56,000 seats. The A's removed or put tarps over roughly 20,000 seats in most of the third deck and the outfield stands. The A's management said that the reason was to create a more intimate feeling for the fans. What's another explanation? The A's removed or put tarps over roughly 20,000 seats to
Answers
Answer:
The other reason was to limit the number of special seats to charge a higher price for them.
Explanation:
Oakland A's knows that it has a large number of dedicated fans and that they are thirsty for tickets to watch the games, as these tickets are in high demand. In this case, when Oakland A's puts tarps or removes only on 20,000 seats and claims that it is to promote a more intimate experience for fans, it is because it knows that fans will want to occupy these special places, no matter what price they need to pay. In this case, we can say that a probable reason for the existence of these 20,000 unavailable seats is to increase the profit from ticket sales, by charging a higher price for the available seats.
_____ are costs of selecting one opportunity or investment over another.
Fixed costs
Opportunity costs
Variable costs
None of the above
Answers
Answer:
(B) opportunity cost
Explanation:
If you are giving up an opportunity over another than it is called opportunity cost.
Apply a real-life example of a person’s self-concept in a short
paragraph (consistency, complexity and clarity)
Answers
One real-life example of a person's self-concept is an individual who sees themselves as a leader. This person's self-concept is consistent
they consistently demonstrate leadership qualities in various aspects of their life, such as in their career, community involvement, and personal relationships. Their self-concept is complex as it encompasses different dimensions of leadership, including decision-making, motivating others, and taking responsibility. They have a clear understanding of their strengths and areas for improvement as a leader. real-life This clarity in self-concept allows them to confidently take on leadership roles and make impactful contributions in their professional and personal endeavors. Apply Their self-concept as a leader influences their behavior, choices, and interactions, and they strive to continuously develop and refine their leadership skills.
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Traditional savings account typical add to balance regularly.a. Trueb. False
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Flase that means you don't use it for your daily cappuccino or occasional shopping.
With regular contributions, the money in this account will grow over time, depending on your interest rate. The traditional savings account adds to the balance regularly. These types of savings accounts generally allow you to earn interest on your money, although they generally pay lower rates than other savings products. With a regular savings account, you agree to pay a certain amount each month. In return, the bank or building society gives you a higher interest rate than you would get with your regular checking or savings account Savings account.A savings account allows you to earn interest on the funds you have saved for future needs. Interest rates can be compounded on a daily,weekly, monthly or yearly basis. Savings accounts vary based on monthly service fees, interest rates, and account features.
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If the seller (located in Cincinnati) is responsible for all costs of a shipment from Cincinnati to Houston, the shipment will be labeled:
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If the seller (located in Cincinnati) is responsible for all costs of a shipment from Cincinnati to Houston, the shipment will be labeled: FOB Houston.
FOB which full meaning is freight on board means that the seller has shipped the goods to the buyer.
Hence, the seller is no longer in the possession of the goods but the buyer because the transfer of ownership has taken place from the seller to the buyer.
In this case the buyer is responsible for any costs or damages that occur during shipping because the goods are now in the control of the buyer.
Based on the information given since the seller (located in Cincinnati) is responsible for all costs of a shipment from Cincinnati to Houston, the shipment will be labeled FOB Houston as the buyer is located in Houston.
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On September 1, Big Fan of Toledo prepaid six months of rent, $3,300 Read the requirements Date Accounts and Explanation Debit Credit Sep. 1 Prepaid Rent 3,300 Cash 3,300 To record rent paid in advance Requirement 2. Record the adjusting entry required at September 30. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Sep. 30 Rent Expense Requirements To record rent expense 1. Record the journal entry for the September 1 payment. 2. Record the adjusting entry required at September 30 3. Using T-accounts, post the journal entry and adjusting entry to the accounts Choose from any list or enter any number in the input fields and then cli part remaining involved and show their balances at September 30.
Answers
On September 1, Big Fan of Toledo prepaid six months of rent, $3,300. To record this transaction, a journal entry should be made with a debit to Cash for $3,300 and a credit to Prepaid Rent for $3,300.
At September 30, an adjusting entry is required to account for the portion of the rent that has been used.
To do this, a journal entry should be made with a debit to Rent Expense for $3,300 and a credit to Prepaid Rent for $3,300. This will bring the Prepaid Rent account to a zero balance, reflecting that the rent has been used for the month.
To illustrate this with T-accounts, the journal entry and adjusting entry can be posted as follows:
Cash:
Debit: $3,300
Credit: $3,300
Prepaid Rent:
Debit: $3,300
Credit: $3,300
Rent Expense:
Debit: $3,300
Credit: $3,300
At September 30, the Cash and Rent Expense accounts will have a balance of $3,300, while the Prepaid Rent account will have a balance of zero, reflecting that the rent has been used for the month.
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______ are products with substantial value which are produced simultaneously by the same process up to a split-off point. Group of answer choices Common products. Minor products. Joint products. By-products.
Answers
Joints products with a substantial value that are produced simultaneously by the same process up to a split-off point.
Joint products refer to the products that are produced simultaneously during the same manufacturing process, up to a point where they can be separated. These products are of substantial value and cannot be considered as mere by-products or minor products. The split-off point is where these products diverge into separate products. Joint products are often seen in industries such as agriculture, mining, and chemical manufacturing, where the process of creating one product results in the production of several others.
For instance, in the petroleum industry, the refining process of crude oil results in several joint products such as gasoline, diesel, jet fuel, and lubricants. These products have substantial value, and their production process is dependent on the initial crude oil extraction process. The value of joint products is often determined by market demand, and the production of one product cannot be easily altered without affecting the production of other joint products.
In conclusion, joint products are valuable products that are produced simultaneously through a manufacturing process, and their production process cannot be easily altered without affecting other joint products. Understanding the concept of joint products is essential for businesses that deal with such products to maximize their profitability and optimize their production process.
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According to the video, what are some tasks that Construction Managers perform? Select four options.
installing plumbing and electrical fixtures
purchasing land to build on
deciding on construction methods
hiring contractors
selling building materials to laborers
making schedules
getting permits and licenses
creating architectural plans
Answers
Tasks. To fulfill deadlines, arrange or manage the activities of a construction project. Prepare and send cost tracking reports, progress reports, or budget estimates. Thus option C, D, F, G is correct.
What are Construction Managers to perform?A representative of the owner or developer, such as administrative personnel, employees, or clients, shall interpret and explain the plans and the conditions of the contract.
Construction project planning, coordination, budgeting, and completion are all under the control of construction managers.
A construction manager performs the following duties at a high level: The entire building project is planned out with deadlines and checkpoints. Employs and oversees personnel and contractors.
Therefore, the planning or management of a construction project's activities to meet deadlines.
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Assume that you would like to put money in an account today to make sure your child has enough money in 10 years to buy a car. If you would like to give your child $10,000 in 10 years, and you know you can get 5% interest per year from a savings account during that time, how much should you put in the account now?
Answers
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal (initial investment)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the time period (in years)
Using this formula, we can solve for P, the amount of money we need to put in the account now:
A = $10,000 (the future value we want)
r = 0.05 (the annual interest rate)
n = 1 (since interest is compounded annually)
t = 10 (the time period in years)
P = A / (1 + r/n)^(nt)
P = $10,000 / (1 + 0.05/1)^(1*10)
P = $10,000 / (1.05)^10
P = $10,000 / 1.62889
Therefore, you should put approximately $6,131.41 in the savings account now to ensure that you will have $10,000 in 10 years, assuming a 5% annual interest rate compounded annually.
Your older sister is planning on saving money by paying her bills, spending money on fun, and then saving whatever is leftover. Why is this not the best option for saving her money?
Answers
Answer:
spend money on bills first then food then save the leftover money for later
To buy a product, customers in a market must first
Answers
To buy a product, customers must first have the need for the product.
Customers cannot just simply buy anything or everything when it comes to products. People love shopping but money is a very useful and powerful resource and customers understand it well, so they don't want to spend it on useless things.
Firstly, there should be a need or a desire to buy a particular product. After that the customer decides his or her budget or the money he would like to spend on that product. If it crosses his or her budget, then the customer may not able to buy the product.
Lastly, there should be willingness to buy the product. Nowadays, we get impressed by big brands, malls and stores giving us immense discounts for even our daily needs. That is how knowingly or unknowingly, we tend to shop more.
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increasingly consumers are using social media to voice complaints that have not been resolved through other means. how are organizations responding to social media complaint? deleting unfriendly posts adding non-disparagement clauses in consumer contracts increasing the legal staff in the organization zeroing in one statement that is not true and ignoring the rest.
Answers
The way organizations respond to consumer complaints is to collect the complaints they feel. then the organization can hold internal meetings to find solutions to the problems at hand.
Every customer-oriented organization needs to provide opportunities and easy and convenient access for its customers to submit their suggestions, criticisms, opinions, and complaints. Complaints are one part of the negative expression that results from the fact that reality does not match one's wishes. Consumer complaint behavior is a term that includes all the different actions consumers take when they are dissatisfied with a purchase or service.
Complaint categories are classified into four, namely:
a. Mechanical Complaints This type of complaint is caused by an error that occurs in the equipment in the restaurant. For example, a dead light in a restaurant, a broken table or chair, or an air conditioner that is not cold.
b. Attitudinal Complaint Types of complaints caused by staff or employees having a bad attitude in serving customers.
c. Service – Related Complaints This type of complaint is caused by poor service provided in a restaurant. For example, waiting too long for food or drinks that have been ordered, unavailability of cutlery on the table, and others.
d. Unusual Complaints Customers can also complain because there is no special room for non-smokers or because of the uncomfortable atmosphere in the restaurant.
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an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
Answers
has the student loan forgiveness application opened
Answers
No, the student loan forgiveness application has not opened.
As of the knowledge cutoff in September 2021, there has been no official announcement or indication that the student loan forgiveness application has opened. Student loan forgiveness programs vary by country and jurisdiction, and the availability of forgiveness programs is subject to government policies and regulations. It is important for individuals with student loans to stay updated on government announcements, changes in legislation, and official channels of communication, such as government websites or authorized loan servicers, for information regarding loan forgiveness programs and application processes.
Student loan forgiveness programs typically have specific eligibility criteria, application requirements, and designated timeframes for submitting applications. It is advisable for borrowers to regularly check for updates from relevant authorities and to seek guidance from qualified professionals or loan servicers for accurate and up-to-date information regarding student loan forgiveness options.
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Which persuasive appeal do you think is the most effective in advertising? Explain.
Answers
Case for question 3: Unilever launched a global campaign called "Campaign for Real Beauty" to challenge the stereotypes set by the beauty industry over the years and to broaden the definition of beauty and encourage discussion about its aspects. This campaign featured regular women (non-models) who were beautiful in their own way and did not fit in with the idealised images of models, super-models, and celebrities. The campaign was a huge success as it was appreciated by many consumers and led to increased sales of Dove products. It also generated plenty of buzz and wide media coverage for the Dove brand. In October 2018, Dove launched the "Evolution" commercial as a key message in its Campaign for Real Beauty. The ad was a one-minute, mute video fast-forwarding the process of turning an average woman into a made-over, photo-shopped billboard model. According to Unilever, advertisements shape the behaviours of people through cognition. Cognition is the perception of a person towards the information communicated by whaluadghafoor at Jun 24, 2022 12-43:05 M through advertisements. These cognitions are observed by the individual through his senses, perception, attention, memory, reasoning, language, etc. The best way of attracting customers is to understand the psychological and cognitive aspects of the consumers. According to some analysts, not only had the 'Real Beauty Sketches' campaign helped Dove effectively increase its sales, but it was also successful in communicating its message and increasing self-appreciation and self-worth among women. The campaign was innovative and ground-breaking, setting the bar for future campaigns by Dove.
Answers
Unilever's "Campaign for Real Beauty" aimed to challenge the stereotypes set by the beauty industry and broaden the definition of beauty. The campaign featured regular women and was appreciated by consumers, leading to increased sales of Dove products. The "Evolution" commercial was a key message in the campaign, fast-forwarding the process of turning an average woman into a photo-shopped billboard model. According to Unilever, advertisements shape people's behaviours through cognition.
Unilever's "Campaign for Real Beauty" was a ground-breaking initiative aimed at tackling the beauty industry's stereotypes. The campaign was a huge success, leading to increased sales of Dove products due to its innovative approach of featuring regular women who did not fit into the idealised images of models, super-models, and celebrities.
The "Evolution" commercial, a key message in the campaign, was an effective way of communicating its message by fast-forwarding the process of creating a billboard model from an average woman. According to Unilever, advertising shapes people's behaviours through cognition, and the "Real Beauty Sketches" campaign helped to increase self-appreciation and self-worth among women. The success of the campaign set a high bar for future campaigns by Dove and demonstrated the importance of understanding the psychological and cognitive aspects of consumers.
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3.
A general rise in prices throughout an economy is called
A. inflation
B. deflation
C.
D. fiscal policy
per capita GDP
Answers
Answer:A
Explanation:
3. ______ are defined as goods or services that are required for health and safety.
Answers
Occupational Health and Safety are defined as goods or services that are required for health and safety. Information standards are guidelines governing the information that must be provided to consumers when they purchase specific goods.
What is the safety of goods?A safe product is one that delivers either no risk or a minimum tolerable level of risk, taking into account the product's typical or reasonably foreseeable use and the need to maintain a high level of consumer protection.
Occupational health and safety is a multidisciplinary discipline that deals with all elements of workplace health and safety, with a heavy emphasis on preventing workplace dangers.
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Jeffrey is having a busy day
Answers
Answer:
Tell Jeffery to take a nap
Explanation:
Yasmine and her spouse Carlos, who file married filing jointly, provide all the support for their 16-year-old son, Miguel. If Miguel qualifies as a qualifying child under the dependent rules, Yasmine and Carlos will be able to claim a.$0 b.$500 c.$1,000 d.$2,000 e.$2,500
Answers
The amount that Yasmine and Carlos, who file married filing jointly, can claim for the support of their 16-year-old son, Miguel, is d.$2,000.
The dependent rule states that since Miguel is under 19, he is a qualifying child. And the total amount allowed for 2020, for example, cannot exceed $2,000.
Thus, Yasmine and Carlos will be able to claim $2,000 under the dependent rules.
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Which macroeconomic goal do investments in human capital and capital goods contribute to? How?
A
Such investments contribute to the goal of price stability by increasing economic production.
B
Such investments contribute to the goal of economic growth by increasing government spending.
C
Such investments contribute to the goal of price stability by increasing consumer spending.
D
Such investments contribute to the goal of economic growth by increasing economic productivity.
Answers
Tricia listed her assets and liabilities. credit card bill car loan bonds piano bank account bicycle which are tricia’s liabilities? select two choices..
Answers
Tricia listed her assets and liabilities which are :
. Credit Card Bill
. Car Loan
What's a Credit Card Billing announcement? A billing assertion is a periodic statement that lists all the purchases, payments, and other debits and credits made for your credit score card account inside the billing cycle. Your credit card provider sends your billing assertion about once a month.
When is a pleasant time to pay your credit card bill? no less than, you should pay your credit card bill by means of its due date every month.
About Car Loan Financing: an automobile may be a good idea, If you want to power a more modern vehicle you would be not able to store up sufficient coins in an inexpensive quantity of time. The hobby price is low, so the more prices won't upload lots to the general fee of the vehicle. The everyday bills might not add stress to your contemporary or upcoming price range.
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on a curved property line, the central angle that is formed by the radii meeting the curve at the points of tangency is referred to as the
Answers
ans. Delta.
The central angle formed by the diameters meeting the wind points of tangency. figure lines. lines that identify the ground elevation. Conniving a section on figure lines.
What Is a Property Line?A property line defines where property begins and ends. It sounds simple, but property line controversies can produce severe problems between neighbors. Knowing where your property lines are on all sides of your home is pivotal if you plan to do upgrades or additions to your home or yard. For illustration, you wouldn't want to invest in a new hedge only to discover that you've installed it a bottom beyond your property line into your neighbor's land. thus, it's essential to do your exploration and be sure of your property lines.
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What basic form of competition is most conducive to the use of the marketing mix?
Answers
Answer:
Monopolistic Competition
Explanation:
Monopolistic Competition is a market structure or form of competition in which there are many sellers, each producing a more or less differentiated product.
This last point is why the use of the marketing mix is key here: because the goods are not homogeneous (like in perfect competition), their prices, brands, packaging and promotion strategy are very important in order to attract a larger market share than the competing products.
The basic form of competition that is most conducive to the use of the marketing mix is Monopolistic competition .
Monopolistic competition can be regarded as a type of competition that is found in an industry where by many firms offer products/services that are similar.
We can conclude that monopolistic competition is good for marketing mix, and in monopolistic competition, there is a low barriers to entry and exit.
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A manufacturing company hires only welders who have completed a formal
program that combines classroom instruction with on-the-job learning. What is the
welders' preparation an example of?
XO A. Performance management
B. Employee development
C. An apprenticeship
D. Computer-based training
Answers
Answer: An apprenticeship
Explanation: Pretty sure that other person had a stroke
What type of insurance would cover a cover a customer injury caused by a product design defect?
Answers
Answer:product liability
Explanation:
Apex
a) Miranda needs to build new shelves in her pantry to store all these items. She wants to put each type of item on a separate shelf. The shelves will be able to support 25 lbs. Will the new shelves be able to support her current supply of powder goods? Use the conversion table below and a spreadsheet to help you determine the answer. (2 points)
Answers
Answer: yes
Explanation:
Converting each to pounds it equals 13.3 pounds
Miranda needs to build new shelves in her pantry to store all these items. Yes, the new shelves be able to support her current supply of powder goods.
What do you understand by the supply of goods?The following are included in a supply of goods: the agreement-based transfer of property rights over things. the commission-based sale of moving items by an agent or auctioneer.
They must be carrying out an action in their own name under another person's orders. delivery of items under a hire-purchase agreement.
Demand and supply have a strong relationship that influences market equilibrium, which determines the amount of items available on the market and their selling prices.
Here,
Converting each to pounds it equals to 13.3
pounds
Standard 1 pound (lb) = 16 ounces (oz)
Metric 1 kilogram (kg) = 1000 grams (g)
Metric to standard 1 kilogram = 2.20 pounds
Standard to metric 1 pound = 0.45 kilograms
Therefore, Miranda needs to build new shelves in her pantry to store all these items. Yes, the new shelves be able to support her current supply of powder goods.
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Complete question is attached with the image.
Why is it called fiscal?
Answers
Financial derives from the Latin noun fiscus, meaning" handbasket" or" storeroom." In ancient Rome, fiscus was the term for the storeroom controlled by the emperor.
Where the plutocrat was literally stored in baskets and was collected primarily in the form of profit from the businesses. A financial time is a 12- month account period that a business uses for fiscal and duty reporting purposes.
A financial time is also known as a fiscal time. A financial time can be different to a timetable time – it does not need to start on January 1 and end on December 31. Knowing a company's financial time is important to pots and their investors because it allows them to directly measure profit and earnings time-over-year. The Internal Revenue Service( IRS) allows companies to be either timetable time or financial time taxpayers.
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Use the sum-of-year depreciation method to calculate the depreciation for the
following scenario. Company XYZ bought a new machine for $100,000 and
expects the machine will last for 10 years.
Answers
Answer:
20%
Explanation:
How to Calculate Straight Line Depreciation
The straight line calculation steps are:
Determine the cost of the asset.
Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount.
Determine the useful life of the asset.
Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount.
Straight Line Example
Company A purchases a machine for $100,000 with an estimated salvage value of $20,000 and a useful life of 5 years.
The straight line depreciation for the machine would be calculated as follows:
Cost of the asset: $100,000
Cost of the asset – Estimated salvage value: $100,000 – $20,000 = $80,000 total depreciable cost
Useful life of the asset: 5 years
Divide step (2) by step (3): $80,000 / 5 years = $16,000 annual depreciation amount
Therefore, Company A would depreciate the machine at the amount of $16,000 annually for 5 years.
The depreciation rate can also be calculated if the annual depreciation amount is known. The depreciation rate is the annual depreciation amount / total depreciable cost. In this case, the machine has a straight-line depreciation rate of $16,000 / $80,000 = 20%.
Consider a small country that is closed to trade, so its net exports are equal to zero. The following equations describe the economy of this country in billions of dollars, where C is consumption, D is disposable income, I is investment, and G is government purchases: C=40+0.9∗DIG=80I=201. Assume that this economy initially has a fixed tax and that net taxes (taxes minus transfer payments are $100 billion. Disposable income is then (Y−100), where Y is the real GDP. Aggregate output demanded is $500 billion (True/False).2. Suppose the government decides to increase spending by $10 billion without raising taxes. Because the expenditure multiplier is 10 (True/False), this will increase the economy's aggregate output demanded by $100 billion (True/False).3. Now, suppose that the government switches to an income tax, which is the type of variable tax, of 20%. Because consumers retain only 80% of each additional dollar of income, disposable income is now 0.80∗Y. In this case, the economy's aggregate output demanded is $500 billion (True/False).4. Given an income tax of 20%, the expenditure multiplier is approximately 3.6 (True/False). Therefore, if the government decides to increase spending by $10 billion without raising tax rates, this would increase the economy's aggregate output demanded by approximately $36 billion (True/False).5. A $10 billion increase in government purchases will have a larger effect on output under a fixed tax of $100 billion (True/False).
Answers
Answer:
1. Aggregate output demanded is $500 billion. True.
Aggregate Demand (Y) = C + G + I
Y = 40+0.9∗DI + 80 + 20
Y = 40 + 0.9 ∗ (Y−100) + 80 + 20
Y = 50 + 0.9Y
0.1Y = 50
Y = $500 billion
2. Suppose the government decides to increase spending by $10 billion without raising taxes. Because the expenditure multiplier is 10. True.
Expenditure Multiplier = 1 / ( 1 - Marginal Propensity to Consume)
Marginal Propensity to Consume = 0.9 as per the Consumption function.
= 1/ ( 1 - 0.9)
= 10
2. b. this will increase the economy's aggregate output demanded by $100 billion. True.
Change in Aggregate output = Increase in government expenditure * expenditure multiplier
= 10 billion * 10
= $100 billion
3. ... In this case, the economy's aggregate output demanded is $500 billion . True.
Aggregate Demand (Y) = C + G + I
Y = 40+0.9∗DI + 80 + 20
Y = 40 + 0.9 ∗ (0.80∗Y) + 80 + 20
Y = 140 + 0.72Y
0.28Y = 140
Y = $500 billion
4. Given an income tax of 20%, the expenditure multiplier is approximately 3.6. True.
As a result of the new tax, the MPC will become;
= 0.9 * ( 0.80 * Y)
= 0.72Y.
Expenditure Multiplier = 1 / ( 1 - Marginal Propensity to Consume)
= 1/ ( 1 - 0.72)
= 3.57
= 3.6
4. b. Therefore, if the government decides to increase spending by $10 billion without raising tax rates, this would increase the economy's aggregate output demanded by approximately $36 billion. True.
Change in Aggregate output = Increase in government expenditure * expenditure multiplier
= 10 billion * 3.6
= $36 billion
5. A $10 billion increase in government purchases will have a larger effect on output under a fixed tax of $100 billion. True.
When the tax was fixed, an increase in Government purchases of $10 billion resulted in an increase in Aggregate output of $100 billion. When the Government switched to income taxes however, a $10 billion increase in Government spending led to a significantly lesser increase in Aggregate output of $36 billion.