1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alukav5142 [94]
3 years ago
12

If korean exports to the united states decline by $15 billion, by how much will cumulative korean spending drop if their mpc is

0.75?
Business
1 answer:
Andrew [12]3 years ago
8 0
Given:
Change in exports: 15 billion
MPC = 0.75

MPC = Change in Consumption / Change in Disposable income

MPS stands for Marginal Propensity to Consume while MPS stands for Marginal Propensity to Save.

MPC + MPS = 1
MPC = 1 - MPS
MPS = 1 - MPC

Spending Multiplier = 1/MPS

Since MPC = 0.75 then MPS = 0.25

Spending Multiplier = 1/0.25 = 4

Change in Export * Spending Multiplier

15 billion * 4 = 60 billion

The cumulative Korean spending will drop by 60 billion.


You might be interested in
To decrease the money supply, the Federal Reserve could a. decrease the required reserve ratio. b. conduct an open market purcha
ELEN [110]

Answer: c. increase the discount rate.

Explanation:

The discount rate of a country is the rate at which the central bank in that country loans money out to the financial institutions.

When this rate is low, more financial institutions will borrow money as opposed to when it is high. Banks borrowing money increases the money supply in the economy so if the Federal Reserve wants to reduce money supply, it should increase the discount rate which would dissuade banks from borrowing from the Fed thereby limiting money supply.

5 0
3 years ago
Here are data on two companies. The T-bill rate is 4.8% and the market risk premium is 5.9%. Company $1 Discount Store Everythin
tiny-mole [99]

Answer and Explanation:

The computation of the fair return for each company is shown below:

Fair Return = Risk free rate of return + Beta × market risk premium

= 4.8 + 1.6 × 5.9  

= 14.24%

Now  

Everything $5 is

= 4.8 + 1 × 5.9

= 10.7%

Hence, the same should be considered

8 0
3 years ago
When the turbine generators are turning from the steam, what do they produce?
SIZIF [17.4K]
Elctricity........as they turn or rotate,magnetic field is produced that produced electricity
4 0
3 years ago
Sonya and Amber work together in the Hong Kong corporate office. Despite having similar backgrounds and education, they cannot a
Tasya [4]

Answer:

A) Individuals have their personal belief systems.

Explanation:

Sonya and Amber work together in the Hong Kong corporate office.

They had similar backgrounds and education but couldn't agree on whether it is appropriate to offer bribes to Chinese officials for the purpose of expediting business transactions.

This ethical generalization illustrates that individuals have their personal belief systems.

5 0
3 years ago
Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper products. This company has a produc
ELEN [110]

Answer:

Width

Explanation:

According to my research on the different terminology used by Retail companies in manufacturing, I can say that this company (Happy Home Products) has a product width of five lines. Product Width is defined as the number of separate product lines offered by a certain company. In the case of Happy Home Products the product width would be detergents, toothpaste, bar soap, disposable diapers, and paper products.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Other questions:
  • If policymakers are concerned that the economy is in danger of rising inflation because aggregate demand is increasing faster th
    9·1 answer
  • The company's net income (loss) for the year was $11,000 and its cash dividends were $4,000. It did not sell or retire any prope
    13·1 answer
  • Most economic models: A. are useless because they use too many simplifying assumptions. B. assume that people are reluctant to l
    15·1 answer
  • How to calculate WACC using the CAPM​
    7·1 answer
  • Fahad works for a company that markets all of Celextron's products. Fahad's company acts as the marketing department for Celextr
    15·1 answer
  • Susan works for a salary of $3,600 per month. She has federal income tax withheld at the rate of 15%, Social Security tax at the
    10·1 answer
  • To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2018, for
    8·1 answer
  • At the end of the current year, Accounts Receivable has a balance of $1,975,000; Allowance for Doubtful Accounts has a credit ba
    12·1 answer
  • How would the issuance of a mortgage note in exchange for a building be reported on the statement of cash flows?
    13·1 answer
  • the following statement is an example of what type of fallacy? ""we must either support the governor’s plan to increase taxes on
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!