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
liberstina [14]
3 years ago
10

Assume there is an increase in Government spending of $10 and the aggregate MPC is 0.8. Of the $8 of income that is received in

the second round, only _______ will be spent on Consumption.
Business
1 answer:
Rzqust [24]3 years ago
3 0

Answer:

$50

Explanation:

For computing the amount which is spent on consumption, first we have to determine the multiplier spending which is shown below:

Multiplier spending = (1) ÷ (1 - MPC)

                                = (1) ÷ ( 1 - 0.8)

                                = 1 ÷ 0.2

                                = 5

And, the government spending is $10

So, the consumption amount spent would be

= 5 ×$10

= $50

You might be interested in
A free enterprise system provides individuals the opportunity to make their own economic decisions, without restrictions from th
ozzi

Explanation:

The free enterprise system is one influenced by the market, which will determine all economic variables, such as price, products and services, and is a system independent of government control to function.

Therefore, it is correct to state that in a free enterprise system, the offer and demand of the consumer for a product or service that will be the determinant of the success or failure of an organization.

As an example of an entrepreneur, we can mention Steve Jobs, who created one of the largest technology companies in the world, Apple. The free enterprise system was one of the reasons for Apple to succeed in becoming one of the most valued companies in the world, due to the fact that it brought innovative products to the market that became examples of products of value to consumers, which made company to grow and become so successful in the market. If the company operated in a government-controlled market, it would probably have to follow specific rules and restrictions for the production of its products that could limit the company, and its performance could be restricted and not as innovative as the company in the market, which is one of the reasons why it achieved success.

5 0
3 years ago
Assume that you are on the board of directors of a company that has decided to buy 80 percent of the outstanding stock of anothe
kati45 [8]

Answer and Explanation:

Insider trading means buying or selling the listed shares based on confidential information which is not yet public. This practice is done by the persons who are part of an organization like auditors, employees, directors, etc., and are aware of the confidential information. Hence, it's an unethical and illegal activity if anyone does insider trading and enjoys personal gain on such trading. Hence, if an investor planned to invest $10,000 in an organization for a personal portfolio in a given scenario, it leads to an ethical problem i.e. insider trading.

If Investor Planned to invest $500,000:

No, the answer will not be different if planned to invest $500,000 in an organization. Any investment transaction in an organization with the object to grow personally based on confidential information is deemed to be insider trading.

If the investor recommends to his brother to buy the shares

There is same ethical consideration in both the practice, whether purchasing a share for a personal portfolio or suggesting someone for purchasing the shares. Hence, if anyone suggests buying shares to another person (brother, etc.), it is also deemed unethical and illegal.

Who's called an investor?

An investor is any man or woman or other entity (which includes a company or mutual fund) who commits capital with the expectancy of receiving financial returns.

Is an investor an owner?

As a lending investor you aren't an proprietor. in case you purchase fairness in a organization you've got made an ownership funding. The go back you earn may be your proportional proportion of the enterprise's profits. The preliminary funding amount will stay tied up within the company's general fee.

Learn more about investor here:- brainly.com/question/25300925

#SPJ4

6 0
1 year ago
What designates those who take hands-on responsibility for creating innovation such as new ideas, products, or methods within an
kari74 [83]
God and jesus and the universe
3 0
3 years ago
National Art is a new business. During its first year of operations, credit sales were $40,000 and collections were credit sales
zmey [24]

Answer:

The ending balance of Allowance for Bad Debts account is $800

Explanation:

The computation of the ending balance of allowance for bad debt is shown below:

= Credit sales × uncollectible rate

= $40,000 × 2%

= $800

The estimated amount would be considered as an allowance for bad debts i.e $800, So no other amount would be come while computing the ending balance of Allowance for Bad Debts account.

However, the other information which is given in the question is not relevant. Hence, ignored it

6 0
3 years ago
Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in millions). (Enter answers in
Gnom [1K]

Answer:

1.

Dr. Net Sales               ¥ 1,888,622

Cr. Income Summary  ¥ 1,888,622

2.

Dr. Income Summary      ¥1,770,833

Cr. Cost of sales              ¥ 1,254,981

Cr. Advertising expense ¥ 118,308

Cr. Other expense           ¥ 397,544

Explanation:

Closing Entries are passed to close the temporary accounts of a business for the year. These accounts are closed and their balances are transferred to income summary account.

First we will close the the revenue / income accounts and then expenses or cost accounts.

4 0
3 years ago
Other questions:
  • During risk management activities, 236 risks have been identified which are caused by 13 root causes. You could eliminate 234 ri
    9·1 answer
  • Which subject line will likely result in grabbing readers' attention? a.Carpool and Vanpool Opportunity b.Our Sustainability Eff
    7·1 answer
  • Hector works as an office assistant for a small, five-person software development start-up. Since it is a relatively new company
    12·1 answer
  • What is meant by an ‘economic boom’?
    8·2 answers
  • Storm Concert Promotions Valle Home Builders Actual indirect materials costs$12,400 $7,000 Actual indirect labor costs 55,900 46
    11·1 answer
  • What is the APR on a loan with an effective annual rate of 15.26% and weekly compounding of interest?
    9·1 answer
  • Tips for Successful LinkedIn Prospecting?
    10·1 answer
  • Which situation is an ethical dilemma?
    7·2 answers
  • Suppose that you purchase a 182-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security's annualized yi
    11·1 answer
  • A rise in wages could be due to:
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!