The answer in the space provided is vertical dimension of a
firm’s structure. This is a structure in which a manager is being relied on or
the one who is responsible of executing a command in means of having to control
the employees and the task that they should do.
Answer:
Our answer is 2430798.798
Explanation:
. 70% of pre-retirement salary should be equal to the interest that we get from savings(5% of savings).
Therefore, 0.7 × 173628.4856 = 0.05×savings
==> savings = 2430798.798
6.4%
200 from the 5% of 4000
140 from 4% on 3500
160 on 6.4% on 2500
Answer: reduced by $80 billion
Explanation:
An expansionary gap is when the actual output is more than the potential output. From the question, we are told that an economy is operating with output $400 billion above its natural level, and fiscal policymakers want to close this expansionary gap and that the central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out.
We are also given the marginal propensity to consume is 4/5, and told that the price level is completely fixed in the short run.
To close the expansionary gap, the government would need to reduce its spending. To solve this, we have to calculate the multiplier. This will be:
Multiplier = 1/(1 - MPC)
= 1/(1 - 4/5)
= 1/1-0.8
= 1/0.2
= 5
Therefore, the government expenditure or spending will be reduced by:
= $400 billion/5
=$80 billion
