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
Savatey [412]
2 years ago
9

Assume that the marginal propensity to consume is 0.8 and that potential output is $800 billion. If real GDP is $850 billion, to

bring the economy to potential output, the government should: decrease spending by $50 billion. increase spending by $50 billion. decrease spending by $10 billion. decrease transfers by $50 billion.
Business
1 answer:
kari74 [83]2 years ago
7 0

The following policies would bring the economy to potential output is Decrease government spending by $10 billion.

<h3>What is Marginal Propensity?</h3>

The "Marginal Propensity" to consume is defined as calculate quantification of money that consumers are ready to spend.

The term "Marginal propensity" to consume is term used in economics. It measures monetary value which consumer is willing to spend to buy goods and services instead of saving it.

The "Marginal Propensity" to consume tends to increase economic activities of country by keeping cash flowing and by not keeping it stagnant. It also helps in increasing trade value and quality and cost of products because it increases healthy competition among companies and in which consumers are ultimately benefitted.

Therefore , we can conclude that the correct option is C.

Learn more about Marginal propensity on:

brainly.com/question/17930875

#SPJ4

You might be interested in
The epa has recently set a strict policy of monitoring the total maximum daily load (tmdl) of nutrients in order to reverse eutr
tia_tia [17]

The EPA has recently set a strict policy of monitoring the total maximum daily load (tmdl) of nutrients in order to reverse eutrophication in Chesapeake Bay.

<h3>What is EPA?</h3>

The acronym EPA stands for Environmental Protection Agency. It is agency in the United States, whose duty is the protection of people and the immediate environment.

The Environmental Protection Agency is an independent agency of the federal government tasked with environmental protection matters.

The functions of Environmental Protection Agency are:

  • Protection of people and the environment from significant health risks.
  • Sponsors and conducts research.
  • Develop and enforces environmental regulations.

Learn more about EPA here: brainly.com/question/14956213

#SPJ1

3 0
2 years ago
What is it called when <br> Money can be saved whereas goods often cannot
enot [183]

Answer: reverse paradox of thrift I believe

3 0
2 years ago
Read 2 more answers
Anne is meticulous when it comes to planning her weekly grocery store visits. Before buying anything, she makes sure that she is
vlada-n [284]

Answer:

Anne exhibits high level of product involvement.

Explanation:

Product involvement is the level of consumers interest in the product and the associated relationship of the consumer with the product.

As it is evident from the question that  Anne is well informed about the deals and has interest in knowing about the product before buying it. This indicates the high level of product involvement.

7 0
3 years ago
On July 1, 2017, Crane Inc. made two sales.
nordsb [41]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

4 0
3 years ago
Which of the following can be classified as data flow for a book store?
marishachu [46]
<span>C.) The amount of money earned in a week being invested in new book purchase

Hope this helps!</span>
5 0
3 years ago
Other questions:
  • What is required to have a legally valid contract?
    7·2 answers
  • Select the examples that best demonstrate likely employers for Design/Pre-Construction workers. Check all that
    5·2 answers
  • You are taking a crash course in e-business in order to compete for a plum job opening in the field. However, you missed the cla
    7·2 answers
  • A popular airline knows that, in general, 95% of individuals who purchase a ticket for a 10-seat commuter flight actually shows
    6·1 answer
  • There are 88 members on a board of directors. if they must form a subcommittee of 55 ?members, how many different subcommittees
    12·1 answer
  • How many courses do you need to finish a major?
    14·1 answer
  • Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transacti
    14·1 answer
  • 2. Identify the type of scale of measurement (nominal, ordinal, interval or ratio) appropriate for each of the following types o
    12·1 answer
  • A shirt manufacturer buys cloth by the 100 yard roll from a supplier. For setting up a control chart to manage the irregularitie
    11·1 answer
  • a coworker has asked you to help him with something very important. you have a lot work to do yourself. what would you be most a
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!