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3 years ago

15

If in response to an increase in government spending of $25 billion, equilibrium output rises by a total of $125 billion, then t

he marginal propensity to consume is

1 answer:

lbvjy [14]3 years ago

4 0

<span>1/1-MPC = 10,MPC=9/10</span>

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The goal of an mnc is to maximize the ________.

SashulF [63]

Answer: Option C

Explanation: In simple words, the goal of an MNC is to maximize the wealth of its shareholders which can be achieved only when the value of that company increases overall.

The increase in value of a subsidiary will only increase the benefit of the stakeholders of that subsidiary while earnings is considered as a temporary benefit in corporate world.

Hence from the above we can conclude that the correct option is C.

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2 years ago

g The current ratio is a.a solvency measure that indicates the margin of safety for bondholders. b.used to evaluate a company's

adoni [48]

Answer:

b.used to evaluate a company's liquidity and short-term debt paying ability.

Explanation:

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.

The current ratio is sometimes referred to as the “working capital” ratio and helps investors understand more about a company’s ability to cover its short-term debt with its current assets.

A company with a current ratio less than one does not, in many cases, have the capital on hand to meet its short-term obligations if they were all due at once, while a current ratio greater than one indicates the company has the financial resources to remain solvent in the short-term.

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2 years ago

Suppose that the price of a rental car (Prc) is $50 while the price of a flight (Pfl) is $85. Also, suppose that the marginal ut

Masteriza [31]

Answer:

Consumers should choose to take the flight.

Explanation:

The price of a rental car = $50

Marginal utility from the car = 20 utils

Now find the per dollar utility from car = $50 / 20 = 2.5

The price of a flight = $85

Marginal utility from the flight = 30 utils

Now find the per dollar utility from flight = $85 / 30 = 2.83

Since the per dollar, MU is greater in the case of flight so consumers should choose to take the flight.

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2 years ago

The following transactions are for Crane Company. 1. On December 3, Crane Company sold $513, 500 of merchandise to Sheridan Co.,

serg [7]

Answer:

a) December 3, 202x, merchandise sold to Sheridan Co., terms 3/10, n/30

Dr Accounts receivable 513,500

Cr Sales revenue 513,500

Dr Cost of goods sold 318,300

Cr Merchandise inventory 318,300

December 8, merchandise allowance

Dr Sales returns and allowances 24,700

Cr Accounts receivable 24,700

December 13, invoice collected from Sheridan Co.

Dr Cash 474,136

Dr Sales discounts 14,664

Cr Accounts receivable 488,800

b) January 2, invoice collected from Sheridan Co.

Dr Cash 488,800

Cr Accounts receivable 488,800

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3 years ago

By offering more generous unemployment insurance programs, European countries can expect Group of answer choices longer periods

natulia [17]

Answer:

Longer periods of unemployment for their workers.

Explanation:

Unemployment is when people who are willing and able work do not have jobs

Types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.

Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom

If a government gives generous unemployment insurance programs, there would be less incentive to find jobs because one of the main reasons why people would want to work is to have money. If the government provides generous pay to the unemployed, there would be less motivation to work and unemployment increases

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2 years ago