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4vir4ik [10]
3 years ago
7

If the marginal propensity to consume in a municipality is 0.8, what is the value of the simple multiplier? If a new stadium tha

t adds $30 million in new consumption expenditures is built, what is the impact on the economy based on this multiplier? Suppose the marginal propensity to import is 0.3, what happens to the multiplier and to the impact on the economy?
Business
1 answer:
Pachacha [2.7K]3 years ago
6 0

Answer:

(a) 5

(b) $150 million

(c) 45 million

Explanation:

(a) Multiplier = 1 ÷ (1 - MPC )

                     = 1 ÷ (1 - 0.8 )

                     = 1 ÷ 0.2

                     = 5 ⇒ the value of the simple multiplier is 5.

b) If the autonomous expenditure is increased by $30 million then the total output will increase by:

= $30 million × 5

= $150 million

c) If the Marginal propensity to import is 0.3 then the import will increase by:

= 150 × 0.3

= 45 million

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( The answer Is not in the options given)

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strojnjashka [21]

Answer:

The correct answer is True.

Explanation:

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Because, in addition to being a function of extreme importance, for any business organization, it faces tremendous challenges, such as technological changes and the intensification of international competition. Business leaders and executives are currently in the process of looking for new ways to manage and run their companies. However, it is not only the magnitude of the changes, which causes problems for organizations, but the increasing speed with which they are going.

In fact, Management Accounting systems emerged to provide information, support management and control of companies, and to promote efficiency in the organization.

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NOTE: If you need to extend the explanation given, you can make a comment or add a new question. I will be very pleased to help you.

6 0
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To easy

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Rate of interest : r=0.05

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To learn more about General environment refer to:

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