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Crazy boy [7]
1 year ago
14

suppose that the government increases spending by $100 billion as a stimulus package. if the marginal propensity to consume is 0

.6, then real gdp will:
Business
1 answer:
jeka941 year ago
3 0

If the marginal propensity to consume is 0.6, then real GDP will increase by $250 billion.

<h3>What will be the real GDP?</h3>

Real GDP is the gross domestic product of a country that has been adjusted for inflation. Gross domestic product is the total value of all the final goods and services that is produced by a country in a particular period.

Marginal propensity to consume is portion of disposable income that is spent on consumption. Marginal propensity to consume can also be described as the amount of real GDP that is spent on consumption. When spending increases, the value of the real GDP would also increase. The increase in real GDP would be as a result of an increase in spending and saving.

Increase in Real GDP = (MPC x increase in spending) + (MPS x increase in spending)

(100 x 0.6) + [(1 - 0.6) x 100 ] = $250 billion

To learn more about MPC, please check: brainly.com/question/19089833

#SPJ1

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Answer:

A) $1,000 gain

Explanation:

When a client buys a straddle, he is purchasing a call and a put option on the same stock with the same strike price and expiration date.

this client bought 5 ABC Jan 30 calls  and 5 ABC Jan 30 puts:

each contract was worth $700 (= $3,500 / 5 contracts)

If the price of the stock fall below $30, the call option will not be taken, but the put option will be enforced. Since the value of the stock is $21, this means that the put option resulted in a $900 profit (= ($30 - $21) x 100).

The client paid $700 for each option, therefore his profit per option = $900 - $700 = $200

His total profit = $200 x 5 options = $1,000

8 0
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You are saving $30 each month. You have a goal to accumulate $700 in savings. How long will it take you?
seropon [69]
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3 0
4 years ago
Consider the data on expected returns and betas for a variety of assets in the table below. what is the expected return on share
artcher [175]
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6 0
3 years ago
Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started work on 10,000 models. During t
GrogVix [38]

Answer:

11,125 units

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Beginning WIP (2500*0.75) 25% is completed       1,875

Units started and completed during the month      8500

[10,000 -1500 as ending Inventory]  

Ending Inventory [1500*0.50]                                    <u>750</u>

Equivalent units                                                         <u>11,125</u>

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5 0
3 years ago
The story of the Reset Button is an example of a noise caused by (select all that apply)
sukhopar [10]

Answer:

B) Cultural background

C) Emotional interference

D) Communication skills

E) Poor listening skills

Explanation:

Hitting reset button for companies is bringing the existing state of affairs back to normal, the time to hit the Reset button is when status quo or the existing state of affairs become unacceptable, when employee, employer and everything needs a wake-up call including you.

However the story of the Reset Button is an example of a noise caused by Cultural background, emotional interference, Communication skills, Poor listening skills.

4 0
3 years ago
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