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
igomit [66]
2 years ago
8

Suppose the marginal propensity to consume is 0.8 and the government cuts taxes by $40 billion. real gdp will _____ by _____.

Business
1 answer:
Dmitriy789 [7]2 years ago
8 0

If the government cuts taxes by $40 billion, this puts more money in consumers' pockets. Given an MPC of 0.8, this means they will spend $32 billion

Evaluating :

(0.8 × $40 = $32).

The correct answer is an increase of $32 billion.

GDP:

Gross domestic product (GDP) is a measure of the final goods and services produced with a specific region over a specified period of time. It is computed as follows:

GDP = Consumption + Government Spend + Investment + Net Exports

What is Marginal Propensity to Consume (MPC)?

Marginal propensity to consume (MPC) is measured as the portion of an increase in pay that a consumer would spend on goods and services as opposed to saving. Essentially, it is measuring how sensitive consumption in an economy is to increases in income. MPC is important in economics because it illustrates the effect that increased government spending has on the economy.

Learn more about Marginal propensity :

brainly.com/question/25821146

#SPJ4

You might be interested in
Material is a scarce resource. The product uses four pounds of material. How much would the company be willing to pay for one mo
miss Akunina [59]

The amount that the company is willing to pay is $12.50.

<h3>What is CM per pounds?</h3>

CM per pounds means the Contribution margin per pounds that we will calculate below.

Particulars                     Amount

Selling price                   $125  

Less: Variable cost

Material                           $40  

Labor                   $22.5  

Variable cost                  <u>$12.5</u>  

CM per unit                     $50  

Divide: Pounds used       <u>$4</u>  

CM per pound          <u>$12.5</u>

In conclusion, the amount that the company is willing to pay is $12.50.

Read more about Contribution margin

<em>brainly.com/question/15684424</em>

7 0
2 years ago
Match the business strategies with their characteristics.
zavuch27 [327]

Answer:

The correct answer is : A-Y, B-Z, C-X

Explanation:

Niche is a business strategy in which a specific buyer group or regional market is focused.

Imitation is the strategy of adopting the best practices of another company usually a firm which was first in the market. It is a low-cost strategy.

High-speed strategy concentrates on speed. It is based on the belief that time is money.

3 0
2 years ago
Employee ExemptionsIdentify each job as generally being considered exempt or not from minimum wage or overtime pay (write a or b
tigry1 [53]

Answer:

certain jobs are excluded from minimum wage or overtime requirements. E.g. generally white collar jobs are exempt. Exemptions include other types of jobs, especially temporary jobs.

__B___ 6. Auto mechanic

___A__ 7. Fruit picker ⇒ seasonal job

__A___ 8. Worker on a foreign-flag cruise ship ⇒ they are not employed by an American company

__B___ 9. Librarian

__A___ 10. Taxi driver ⇒ earn sales commissions

__A___ 11. Real estate agent ⇒ earn sales commissions

__B___ 12. Bellperson at a hotel ⇒ They are not exempt, but their minimum wage is much lower.

__A___ 13. Computer programmer (paid more than $27.63 per hour)

__A or B___  14. Hairdresser ⇒ depends if they are paid based on sales commission or not, or if they receive tips. Hairdressers that receive commissions are exempt, and those who receive tips have a lower minimum wage. Only hairdressers that are paid on an hourly rate and do not receive commissions or tips must be paid a minimum wage. This applies generally to apprentices.

__B___ 15. Bank teller

4 0
2 years ago
Teach for america works to solve which societal problem
aniked [119]
<span>Teach for america works to solve the problem of educational inequality. Teach for America’s network includes more than 10 00corps members teaching in 46 regions across the country. Teach for America corps members are as effective as- an in some cases more effective than- other teachers. They are funded by contritbutions from business, foundations, government ogranizations , and individuals in the regions where corps members teach.</span>
6 0
3 years ago
It is important to manage customer relationships because customers provide a great deal of value to the company if they remain c
qwelly [4]

Answer:

Customer lifetime value predicts how much profit is associated with a customer during the course of their lifetime relationship with a company.

Explanation:

It is important to manage customer relationships because customers provide a great deal of value to the company if they remain customers for many years.

Customer lifetime value is greater for companies who have loyal customers as compared to customers who are one time only. They add less value to the company as customers are also a source of promotion for the company.

7 0
3 years ago
Other questions:
  • Each Cutco knife goes through 30 steps to ensure that it meets the firm's standards and provides a good value for a premium prod
    9·1 answer
  • Allowance for doubtful accounts has a debit balance of $433 at the end of the year (before adjustment, and bad debt expense is e
    7·1 answer
  • During July, Laesch Company, which uses a perpetual inventory system, sold 1,430 units from its LIFO-based inventory, which had
    10·1 answer
  • Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's nor
    11·1 answer
  • Petrus Framing's cost formula for its supplies cost is $1,710 per month plus $9 per frame. For the month of March, the company p
    8·2 answers
  • Which of the following activities is included in strategy​ implementation? A. Develop a​ strategy-supportive culture and create
    8·1 answer
  • The following selected account balances are provided for Delray Mfg.
    10·1 answer
  • The short run is defined as A. a period of time of five years or less. B. the period of time in which all factors of production
    15·1 answer
  • According to the eTextbook, ______ is the lot size (Q) that will minimize total annual inventory cost.
    6·1 answer
  • Pension data for David Emerson Enterprises include the following:_______.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!