1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vladimir1956 [14]
2 years ago
14

Suppose that every additional four percentage points in the investment rate (I ÷ GDP) boost economic growth by one percentage po

int. Assume also that all investment must be financed with consumer saving. The economy is now assumed to be fully employed at
If the goal is to raise the economic growth rate by 1 percent,
a. By how much must investment increase? $ billion
b. By how much must consumption decline for this to occur?
Business
1 answer:
vitfil [10]2 years ago
7 0

For questions a, b

  • An additional $320 billion in spending is required.
  • Reduced consumption of $320 billion is needed for this to occur.

<h3>By how much must investment increase?</h3>

Generally, the equation for the investment accounts is  mathematically given as

x=($1tri / $8 tri) * 100

x= 12.5%

Now we know that the answer lies in the fact that the investment rate may be increased by 4% for every 1% rise in economic growth.

Therefore,

=($8 trillion * 0.165%)

=$1.32 trillion

The additional investment is 3.2% of GDP.

Therefore, an increase in investment of ($1320 - $1000) billion is needed to raise GDP growth by 1 percentage point.

This means an additional $320 billion in spending is required.

(b).

In conclusion, Since we were already aware that we would need to cut down on our spending in order to make this investment, we may conclude that:

Reduced consumption of $320 billion is needed for this to occur.

Read more about  investment

brainly.com/question/15353704

#SPJ1

You might be interested in
Which of the following causes the unemployment rate to understate the true extent of joblessness?A) Many fulltime workers really
zhannawk [14.2K]

Answer:

E) Discouraged workers are counted as unemployed

8 0
3 years ago
Assume that you contribute $200 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $
sveta [45]

Answer:

Total FV= $1,220,441.33

Explanation:

<u>First, we need to calculate the value of the $200 for 20 years. To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

A= 200

n= 20*12= 240

Intertest rate= 0.07/12= 0.005833

FV= {200*[(1.005833^240) - 1]} / 0.005833

FV= $104,180.27

<u>Now, the value of the $300 for 30 years. At the same time, the future amount of the first investment. Each one with its separate formula.  </u>

$300 monthly investment:

n= 300*12= 360

FV= {300*[(1.005833^360) - 1]} / 0.005833

FV= $365,962.41

$104,180.27 investment:

FV= PV*(1+i)^n

FV= 104,180.27*(1.005833^360)

FV= $854,478,92

<u>Finally, the total FV:</u>

Total FV= 854,478.92 + 365,962.41

Total FV= $1,220,441.33

6 0
3 years ago
Shirley analyzed her company’s product line of refrigerator magnet products. She then deleted a few tourist magnets that had los
ololo11 [35]

Explanation:

In this question it can be seen that Shirley is using a comprehensive product management marketing approach to adjust the company's line of magnets, focusing on the pricing strategy and positioning of some products, which can be seen in the question when Shirley discovered that the group of emoji magnets needed more market penetration, and so through that she created a campaign, analyzed the statistics of the total line and adjusted and identified some synergies for the new products, which made it possible to adjust the overwall of the product line and not just individual products.

Shirley considered the way products work together as collectives and how one product can influence another.

4 0
4 years ago
As the roman government became more efficient, it took on more functions. to pay for these services, rome ________.
Vanyuwa [196]
The answer to this question is <span>increased taxes on farmers who lived outside of Italy
Larger government will always result in larger government spending (which will led into a higher amount of tax that must be paid). Since roman do not want its people to turn on them due to the increase in tax, Roman government decided to take it from the people outside their empire.

</span>
3 0
3 years ago
Read 2 more answers
Throughout​ history, strong leaders have been described by their traits. Trait theories of leadership focus on personal qualit
kotegsom [21]

Answer:

Agreeableness and emotional stability show strong relationships to leadership

Organizations need strong leadership and strong management for optimal effectiveness. We need leaders to challenge the status​ quo, create visions of the​ future, and inspire organizational members to achieve the visions. We also need nonleaders to formulate detailed​ plans, create efficient organizational​ structures, and oversee​ day-to-day operations.

Explanation:

Throughout history, strong leadersâ€â€Buddha, Napoleon, Mao, Churchill, Roosevelt, Reaganâ€â€have been described in terms of their traits. Trait theories of leadership thus focus on personal qualities and characteristics. We recognize leaders like South Africa’s Nelson Mandela, Virgin Group CEO Richard Branson, Apple co-founder Steve Jobs, and American Express chairman Ken Chenault as charismatic, enthusiastic, and courageous. The search for personality, social, physical, or intellectual attributes that differentiate leaders from nonleaders goes back to the earliest stages of leadership research. Early research efforts at isolating leadership traits resulted in a number of dead ends. A review in the late 1960s of 20 different studies identified nearly 80 leadership traits, but only 5 were common to 4 or more of the investigations.3 By the 1990s, after numerous studies and analyses, about the best we could say was that most leaders â€Å"are not like other people,†but the particular traits that characterized them varied a great deal from review to review.4 It was a pretty confusing state of affairs. A breakthrough, of sorts, came when researchers began organizing traits around the Big Five personality framework (see Chapter 5).5 Most of the dozens of traits in various leadership reviews fit under one of the Big Five (ambition and energy are part of extraversion, for instance), giving strong support to traits as predictors of leadership. The personal qualities and characteristics of Richard Branson, chairman of Virgin Group, make him a great leader. Branson is described as fun-loving, sensitive to the needs of others, hard working, innovative, charismatic, enthusiastic, energetic, decisive, and risk taking. These traits helped the British entrepreneur build one of the most recognized and respected brands in the world for products and services in the business areas of travel, entertainment, and lifestyle. Jason Kempin/FilmMagic/Getty Images, Inc. A comprehensive review of the leadership literature, when organized around the Big Five, has found extraversion to be the most important trait of effective leaders6 but more strongly related to leader emergence than to leader effectiveness. Sociable and dominant people are more likely to assert themselves in group situations, but leaders need to make sure they’re not too assertiveâ€â€one study found leaders who scored very high on assertiveness were less effective than those who were moderately high.7 Unlike agreeableness and emotional stability, conscientiousness and openness to experience also showed strong relationships to leadership, though not quite as strong as extraversion. Overall, the trait approach does have something to offer. Leaders who like being around people and are able to assert themselves (extraverted), disciplined and able to keep commitments they make (conscientious), and creative and flexible (open) do have an apparent advantage when it comes to leadership, suggesting good leaders do have key traits in common. One reason is that conscientiousness and extraversion are positively related to leaders’ self-efficacy, which explained most of the variance in subordinates’ ratings of leader performance.8 People are more likely to follow someone who is confident she’s going in the right direction. Another trait that may indicate effective leadership is emotional intelligence (EI), discussed in Chapter 4. Advocates of EI argue that without it, a person can have outstanding training, a highly analytical mind, a compelling vision, and an endless supply of terrific ideas but still not make a great leader. This may be especially true as individuals move up in an organization

3 0
3 years ago
Other questions:
  • "the service sector makes up approximately what percentage of all jobs in the united states?" 40%
    13·1 answer
  • Which of the following possible provisions of a bond indenture is designed to ease the burden of principal repayment by spreadin
    15·1 answer
  • Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm'
    6·1 answer
  • Below is the 6-step process for making chocolate chip cookies: 1) combine the flour, baking soda, salt in one large bowl 2) comb
    8·1 answer
  • ABC company manufactures two products in one process. Joint processing costs up to the split-off point total $33,600 a year. The
    6·1 answer
  • Note that common activities are listed toward the top, and less common activities are listed toward the bottom.
    14·2 answers
  • 5 examples of competition policy authorities​
    12·1 answer
  • Brand equity results in lucrative brand Blank______ opportunities, when another company wishes to pay a royalty or fee to use yo
    5·1 answer
  • According to Lindsey Smith of GE Healthcare, all of the following are necessary for a successful sales career EXCEPT:
    5·1 answer
  • What is the sharpe ratio (reward-to-variability) of the cal line that joins the risk-free asset and optimal risky asset p?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!