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Ira Lisetskai [31]
2 years ago
11

If there is an initial (autonomous) decrease in spending, the eventual decline in aggregate demand will be much larger because o

f the
Business
1 answer:
Andrei [34K]2 years ago
7 0

If there is an initial (autonomous) decrease in spending, the eventual decline in aggregate demand will be much larger because of the multiplier effect.

<h3>What is Multiplier Effect ?</h3>

The multiplier effect refers to the effect on national income and product of an exogenous increase in demand.

For example, suppose that investment demand increases by one. Firms then produce to meet this demand. That the national product has increased means that the national income has increased. Consequently consumption demand increases, and firms then produce to meet this demand.

The multiplier theory refers to when an economic factor increases, it generates a higher total of other economic variables than the increase of the initial factor. When there is an autonomous change in aggregate spending more money is spent in the economy. People will earn this money in the form of wages and profits.

Thus the national income and product rises by more than the increase in investment. The multiplier effect is greater than one.

Learn more about Multiplier Effect on:

brainly.com/question/13440595

#SPJ4

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Choose the scenario(s) below where the consumer behavior is a function of an interpersonal influence. a. You purchase a new smar
Andreyy89

Answer:

Explanation: c. You buy an Audi sedan because the CEO of your company drives one.

e. You buy a ticket to a movie you’ve already seen because people you work with are going to the movie

6 0
3 years ago
The specifications for a plastic liner for a concrete highway project calls for thickness of 5.0 mmplus or minus±0.10 mm. The s
expeople1 [14]

Answer and Explanation:

The computation is shown below:

Upper specification limit is

= 5 + 0.1

= 5.1 mm

Lower specification limit is

= 5- 0.1

= 4.9 mm

The process cabability index  is

= min(USL - mean ÷ 3 × standard deviation , mean - LSL ÷ 3 × standard deviation)

= min((0.1 ÷ 3 ×0.02) , (0.1 ÷ 3 × 0.02))

= min(1.67,1.67)

= 1.67

Since Upper specification is 5.1 mm

And, the Mean line is 5 mm

So, the upper specification lies at a distance for

= 5.1 - 5

= 0.1 mm

Standard deviation is 0.02 mm

Hence, upper specification lies at

= 0.1 ÷ 0.02

= 5

This standard deviation from the means

5 0
3 years ago
Joe is a project manager on an industrial design project. He has found a pattern of defects occurring in all of his projects ove
Vadim26 [7]

Answer:

Quality Assurance Analysis

Explanation:

Here the work performed by Joe is that of Quality Assurance.

As Joe has performed the root cause analysis understanding the defects, and then further took a step to analyse the defects and their pattern in order to find the solution for those defects.

Whenever there is Quality Control Performed then we check the defects caused, and their sources.

In Quality Assurance a further step to Quality Control is taken and it is analysed what are the impacts of such defects on the process.

Therefore, the answer is

Quality Assurance Analysis

8 0
3 years ago
Eduardo arranged for his employees to acquire the education and tools they need to make decisions on their own. He is now confid
Angelina_Jolie [31]

Answer:

Eduardo enabled them and encouraged empowerment.

Explanation:

Training can be defined as a learning process which typically involves teaching an individual or group of people skills that are relevant to their job position or roles in an organization.

Similarly, development can be defined as a strategic process which typically involves acquiring skill-sets, behaviors, and knowledge that enhances the ability of a worker (employee) to stay relevant in the industry, as well as meet changes with respect to job requirements, unending customer demands, and client support.

The main purpose of a training is to improve an employee's performance in his or her place of work while development is focused on preparing an employee for higher positions available in an organization.

In this scenario, Eduardo enabled his employees and encouraged empowerment.

Basically, he enabled the employees by facilitating a training where they acquired the requisite education and tools they need to make decisions on their own. Also, he empowered them because they can now handle more tasks independently, without extensive managerial assistance.

8 0
3 years ago
Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recomm
ruslelena [56]

Answer:

Share price : $ 56.23

Explanation:

CAPM

Ke= r_f + \beta (r_m-r_f)

risk free = 0.05

market rate = 0.11

premium market = (market rate - risk free) 0.06

beta(non diversifiable risk) = 1.64

Ke= 0.05 + 1.64 (0.06)

Ke 0.14840

Now, we solve for the present value of the future dividends:

year   dividend*     present value**

1  2.91                 2.53

2  3.31                 2.51

3  3.78         2.49

4  4.31                 2.48

4   80.38          46.22

TOTAL            56.23

*Dividends will be calculate as the previous year dividends tiems the grow rate

during the first four year is 14%

then, we calcualte the present value of all the future dividends growing at 9% using the dividend grow model:

\frac{D_1}{K_e-g}

(4.31 x 1.09) / (0.1484 - 0.09) = 80.38

Then we discount eahc using the present value of a lump sum:

\frac{Cashflow}{(1 + rate)^{time} } = PV

We discount using the CAPM COst of Capital of 14.84%

last we add them all to get the share price: $ 56.23

4 0
4 years ago
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