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
True [87]
3 years ago
10

Consider an island country called Arcadia. Assume that the aggregate price level is constant, the interest rate is fixed, and th

ere are no taxes in this country. Assume that an increase of $300 in autonomous investment leads to an increase of $900 in equilibrium income.
Required:
1. If the marginal propensity to import equals.0.10, the marginal propensity to consume must be?
Business
1 answer:
lozanna [386]3 years ago
3 0

Answer:

If the marginal propensity to import equals.0.10, the marginal propensity to consume must be 0.2333333

Explanation:

In order to calculate the marginal propensity to consume (MPS), we would have to use the following formula:

Multiplier =1/(MPS+MPI)

Multiplier =change in income/change in autonomous spending

Multiplier =$900/$300

=3

Therefore,  3=1/(MPS+0.1)

3MPS+0.3=1

3MPS=0.70

MPS=0.70/3=0.2333333

If the marginal propensity to import equals.0.10, the marginal propensity to consume must be 0.2333333

You might be interested in
Suppose Jones Company manufactures chairs. One model is the executive chair that sells for $120. Jones Company projects sales of
Anestetic [448]

Answer:

$32,000

Explanation:

Cost of goods sold refers to all direct expenses incurred in producing goods and excludes all selling and indirect costs.

Cost of goods sold = Sales value - Gross Profit

Gross profit = Sales value - Direct costs - overhead costs

Gross profit per unit = $120 - ($50 + $ 20 + $10)

Gross profit per unit = $40 per unit

Gross profit in value = $40 per unit × No of units = $40 × 400 units = $16,000

Budgeted sales value = Selling price per unit × Budgeted sales units

                                     = $120 × 400 chairs = $48000

Thus, budgeted cost of goods sold = Budgeted sales value - Gross Profit in value

= $48000 - $16000 = $32000

<u>Note</u>: While computing gross profit, selling and administrative expenses would be excluded since those are used while computing net income. Also, cost of goods sold excludes selling and administrative i.e . indirect costs.

5 0
3 years ago
An economy produces only apples and oranges. The base year is 2012, and the table gives the quantities produced and the prices
Mashutka [201]
Iuuu is bigger then her
6 0
2 years ago
Whindy Corporation, an S corporation, reports a recognized built-in gain of $80,000 and a recognized built-in loss of $10,000 th
mihalych1998 [28]

Answer:

Built-in gains tax is $13,020 .

Explanation:

The built-in gains tax is one levied against an S corporation that used to be a C corporation, or received assets from a C corporation.  

Here,

Gain= $80,000

Loss= $10,000

Holds= $8,000

Income= $65,000

Corporate tax= 21%

To calculate the built-in gains tax, we will need to calculate the net gain of the corporation and multiply it by the tax rate.

= Built-in-gain - built-in-loss - unexpired NOL

80,000 - 10,000 - 8,000 = 62,000

Then

62,000 x 0.21 tax rate = 13,020

= 13,020

4 0
3 years ago
What are three things to look at closely on the contract?
kicyunya [14]
The date, 
signature 
rules.
3 0
3 years ago
Read 2 more answers
This is due at 12. please help me
Over [174]
1. 110
2. 75
Won 110
Lost 35.
I tried my best sorry if it wrong.
5 0
3 years ago
Other questions:
  • On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 95,000 shares authori
    13·1 answer
  • Market Value Ratios Val's Volleyball Supply's market-to-book ratio is currently 3.29 times and PE ratio is 5.49 times. If Val's
    9·1 answer
  • How to supply and demand work together to determine price? In other words, what happens to both supply and demand when prices ri
    9·1 answer
  • Based on the interdependence of the four types of salesperson goals, what should a salesperson's sales call goals be based on?
    5·1 answer
  • A speaker seeking to express the events leading to higher interest rates should choose which pattern of organization?
    11·1 answer
  • How would you bookmark a web page using a GUI web browser?
    10·1 answer
  • Take It All Away has a cost of equity of 11.17 percent, a pretax cost of debt of 5.32 percent, and a tax rate of 40 percent. The
    5·1 answer
  • Free here are someee brainly
    6·2 answers
  • Jordan has the following assets and liabilities:_______. Two cars $10,000 House $200,000 Mortgage $100,000 Cash $1,000 Car loans
    9·1 answer
  • you are the coordinator of a nonprofit that distributes donated items to three local homeless shelters. what is the most efficie
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!