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Brums [2.3K]
3 years ago
11

Suppose a report on CNN says that there is an impending recession coming in the United States. As a result, Bert's family, as we

ll as many other like minded families and individuals, reduce their spending and instead fill up their piggy banks for a potential rainy day.As a result of this behavior:a) Nothing in the economy changes as a result of people choosing to save up some money.b) The economy is actually harmed as there is a sharp decease in consumer spending.c) The economy is stimulated as individuals begin to save up money and therefore have more money to spend on goods.In macroeconomics, this result is known as:a) self-regulationb) a business cyclec) normal behaviord) piggy bank fatteninge) the paradox of thrift
Business
1 answer:
lisov135 [29]3 years ago
3 0

Answer:

b) The economy is actually harmed as there is a sharp decease in consumer spending.

Explanation:

As a result of the news of a recession people will react by planning for a future that may be bleek financially.

Savings will increase, the greater the fear of recession the more people will save to cushion the impact of recession. There is the possibility of job slow down in economic activities and resultant job losses so extra cash that would have normally been spent will be saved for the rainy day

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In a simple, closed economy (no government or foreign sector), disposable income increases from $2,000 to $3,000. If consumption
tamaranim1 [39]

Answer:

The marginal propensity to save is 0.4

Explanation:

The marginal propensity to save is 1 - marginal propensity to consume.

The marginal propensity to consume is the proportion of an increase in income that the consumers will spend from this increased income and the marginal propensity to save is the proportion of the increase in income that will be saved.

The marginal propensity to consume (MPC) = Change in consumption / change in income

The MPC = (2100 - 1500) / (3000 - 2000)  =  0.6

Thus, the marginal propensity to save is 1 - 0.6 = 0.4

8 0
3 years ago
In May, one of the processing departments at Messerli Corporation had beginning work in process inventory of $18,000 and ending
Evgen [1.6K]

Answer:

$170,000

Explanation:

The computation of the total cost to be accounted is shown below:

= Beginning work in process units + cost of units transferred out

= $18,000 + $152,000

= $170,000

In order to compute the total cost to be accounted we simply added the beginning work in process units and the cost of units transferred out so that the exact value could come

6 0
3 years ago
The law of demand states that​ ______, the​ ______ the price of a​ good, the smaller is the quantity demanded; and the​ ______ t
saul85 [17]

Answer:

The correct answer is letter "D": other things remaining the​ same; higher; lower..

Explanation:

According to the demand law, <em>ceteris paribus</em>, as long as the price of a good or service decreases the quantity demanded increases. If the price increases, the quantity demanded for that good or service decreases. The relationship between quantity demanded and the price is inversely proportional.

7 0
3 years ago
Read 2 more answers
Your 15-year-old brother comes home with the great news that he has decided to buy his first car and has just agreed to give $10
PSYCHO15rus [73]

In this case the stranger should disregard the contract.

The key piece of information in this question is that the purchaser is only fifteen years old. In order to enter into a contract both parties must be 18 years old. Since the signer in this case is not 18 the contract is not valid.

8 0
3 years ago
Tektron Industries has Beginning and Ending Raw Materials Inventories of $32,000 and $40,000, respectively. Direct Materials use
ch4aika [34]

Answer:

$138,000

Explanation:

The computation of the cost of Raw Materials Purchased is shown below:

= Direct materials used + ending direct material inventory - beginning direct material inventory

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= $138,000

Simply we added the  ending direct material inventory and deduct the beginning direct material inventory  to the direct material used so that the accurate amount can come

5 0
3 years ago
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