Answer: 2/3
Explanation: Crowding out may described as an effect which stems from government involvement in an economic market resulting in the reduction of personal consumer goods or investments and businesses due to rising interest rates and low capital accumulation.
In the question above, if crowding out is ignored, The marginal propensity to consume(MPC) will be:
Multiplier = $30 billion ÷ $10 billion = 3
Multiplier = 1÷ (1 - MPC)
3 = 1 ÷ (1 - MPC)
3(1 - MPC) = 1
3 - 3MPC = 1
-3MPC = 1-3
-3MPC = - 2
MPC = 2/3
Answer
Price elasticiy of demand for business travelers: -0.16
Price elasticity of demand for vacationers: -0.29
Explanation:
To find the price elasticy of demand (PED) using the midpoint method, we use the following formula:
![PED = \frac{(Q2-Q1)/[(Q2+Q1)/2]}{(P2-P1)/[(P2+P1/2]}](https://tex.z-dn.net/?f=PED%20%3D%20%5Cfrac%7B%28Q2-Q1%29%2F%5B%28Q2%2BQ1%29%2F2%5D%7D%7B%28P2-P1%29%2F%5B%28P2%2BP1%2F2%5D%7D)
Where Q2 and P2 are the new quantity demanded and new price respectively, and Q1 and P1 are the old quantity demanded and price.
Plugging the amounts into the formula we obtain the results of the answer.
Because both results are in absolute value less than one (0.16 and 0.29), we can say that the PED of tickets, for both vacationers and Business traveleres, is relatively inelastic. (Demand falls less in proportion to the change in price).
Answer:
d. bad timing
Explanation:
Remember the principle of first entry advantage which says that the first entrant to a market has better advantage of gaining more market share over late entrants.
This was true in the Tablet market which saw Apple's iPad been the very first commercially sold tablet devices. Because of wrong/late timing when Apple introduced its next-generation iPad2 the HP tablet came in struggling to get a part of the already captured tablet market by Apple's iPad.
Answer:
Explanation:
30 - 21 = 9 years
r = 3% inflation
FV = 25,000
We know that FV = PV(1+r)^n
25,000 = PV(1+0.03)^9
PV = 25,000/ 1.3047731
PV = 19,160.42, this is how much it worth today
Answer:
The correct answer to the following question is D) interest rates would be increased by the government when there is almost full employment in the economy.
Explanation:
When in the economy, business are producing close to productivity and in the nation there is almost full employment , then it can be said that the economy is booming . Which means there is good amount of money supply in the economy and people are spending robustly and that means the demand is high , which ultimately tells that the prices of goods and services are high.
So to cut the prices, government will increase the interest rate which will lead to the increase in cost of borrowing, and that will cause decrease in money supply and demand will ultimately fall, which leads to decrease in prices of goods and services.
