Answer:
a. 0.8
b. 5
c. 0.9 and 10
Explanation:
a. The formula to compute the MPC is shown below:
= (Change in consumption) ÷ (Change in investment income)
= $16 billion ÷ $20 billion
= 0.8
b. The formula to compute the size of the multiplier is shown below:
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.8)
= 1 ÷ 0.2
= 5
c. If the change of the consumption increases, then the MPC would be
= (Change in consumption) ÷ (Change in investment income)
= $18 billion ÷ $20 billion
= 0.9
And, the size of the multiplier would be
= 1 ÷ (1 - 0.9)
= 1 ÷ 0.1
= 10
Answer:
Increased
Explanation:
Based on the information given we were told Ms. Sawyer's salary is the amount of $35,000, up from the amount of $31,000 last year which means that Ms. Sawyer's salary had INCREASED from $31,000 last year to $35,000 this year
Secondly we were told that the CPI is 187.5 this year which is up from 180 last year which means that Ms. Sawyer's CPI had INCREASED
from 180 last year to 187.5 this year.
Therefore this simply means that Ms. Sawyer's real income has INCREASED since last year.
Answer:
C) Will increase by $100
Explanation:
We can calculate the expected profit by adding:
$6,000 x 10% = $600
$4,000 x 30% = $1,200
<u>-$2,000 x 60% = -$1,200</u>
expected profit = $600
If best profit increases to $,7000 then the new expected profit will be:
$7,000 x 10% = $700
$4,000 x 30% = $1,200
<u>-$2,000 x 60% = -$1,200</u>
expected profit = $700
The new expected profit is $100 larger than the previous expected profit.
The answer is b) because it should be anything u can measure or see your progress in
The economic way of thinking is more than money, budgets,and the stock market. this is because when thinking of the economy, it includes the community and choices must be made to improve it. some economic decisions are costly, and could negatively affect the economy by making the costs of things skyrocket, ruining benefits of others that relied on them and will now put jobs and businesses into bankruptcy.