Answer:
A) decrease MPC, increase MPS, and decrease the multiplier so that changes in planned investment will have a smaller impact on equilibrium output.
Explanation:
When you receive money, e.g. get paid by your employer, the first thing you do is pay for your basic necessities which are classified as autonomous spending. Then hopefully you will have some money left which is classified as disposable income. You can do two things with your disposable income, either spend it or save it.
The proportion that you spend is called the marginal propensity to consume (MPC) and the remaining part that you save is called the marginal propensity to save (MPS). If the MPS was 1% in 2007 and increased to 5% in 2009, then the MPC was 0.99 in 2007 and 0.95 in 2009.
The formula to calculate the economic multiplier is 1 / MPS:
- the economic multiplier in 2007 = 1 / 1% = 100
- the economic multiplier in 2009 = 1 / 5% = 20
Making money,.....................
Answer:
b. $5.01
Explanation:
practical capacity = 310 x 16 x 250 = 1,240,000 boxes of wine per year
fixed overhead costs = $4,000,000 / 1,240,000 = $3.23 per box of wine
variable manufacturing costs = $1,762,200 / 990,000 = $1.78 per box of wine
total production costs per unit when practical capacity is used = $3.23 + $1.78 = $5.01 per box of wine
Answer:
b. $26,666
Explanation:
Additional first-year depreciation =40000*0.5 = 20000
MACRS cost recovery = (40000-20000)*0.3333 = 6666
Total cost recovery deduction for 2017= 20000+6000 = 26666
Answer:
The answer is letter A.
Explanation:
They develop community networks as backup systems.
