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
Drag each label to the correct location on the image.
muminat

Answer: low invol- Georgina Megan Dina

High invol Laura Charles jonny

Explanation:

5 0
2 years ago
Which of the following is an example of a specific purpose? A. I want my employees to understand and follow the new dress code p
Alla [95]

Answer:

D. a and c

Explanation:

I hope it helps.

8 0
3 years ago
Cushing Manufacturing assigns overhead based on machine hours. The MillingDepartment logs 1,800 machine hours and Cutting Depart
morpeh [17]

Answer:

Explanation:

The journal entry is shown below:

Milling work in progress A/c Dr $9,000

Cutting work in progress A/c Dr $15,000

     To Manufacturing overhead A/c             $24,000

(Being overhead allocation is recorded)

The milling work in progress is computed by

= Milling department machine-hours × $ overhead rate

= 1,800 machine hours × $5

= $9,000

And, The cutting work in progress is computed by

= Cutting department machine-hours × $ overhead rate

= 3,000 machine hours × $5

= $15,000

5 0
3 years ago
Based on the Management in Action case, if an employee asks Korey for time off to take care of a sick child, Korey may believe t
yaroslaw [1]

Korey's perceptual bias is the fundamental attribution.

Fundamental attribution occurs if an individual tries to explain the behavior of another person based on his/her personality, rather than based on the situation.

This type of bias is shown by Korey because he:

  • Thinks the employee is lazy, which is related to personality features.
  • He does not consider the situation or the fact the employee needs time to take care of the child, and it is not just avoiding work.

Learn more in: brainly.com/question/13044778

5 0
3 years ago
On November 7, Mura Company borrows $370,000 cash by signing a 90-day, 8%, $370,000 note payable. 1. Compute the accrued interes
Hatshy [7]

Answer:

At 31 December, the Interest for 54 days accrues as follows :

Interest expense $17,740 (debit)

Note Payable $17,740 (credit)

On payment February 5, the Interest expense will be capitalized in the Note Payable as follows :

Note Payable $407,473 (debit)

Cash $407,473 (credit)

Explanation:

AT, November 7, When Mura Company borrows the money :

Cash $370,000 (debit)

Note Payable $370,000  (credit)

At 31 December, the Interest for 54 days accrues as follows :

Interest expense $17,740 (debit)

Note Payable $17,740 (credit)

Interest expense calculation = $370,000 × 8% × 54/90

                                                = $17,740

At February 5, the interest for 60 days accrues as follows :

Interest expense $19,733 (debit)

Note Payable $19,733 (credit)

Interest expense calculation = $370,000 × 8% × 60/90

                                                = $19,733

On payment February 5, the Interest expense will be capitalized in the Note Payable as follows :

Note Payable $407,473 (debit)

Cash $407,473 (credit)

Note Payable Calculation = $370,000 + $19,733 + $17,740

                                              $407,473

3 0
3 years ago
Other questions:
  • Houghton Company has the following items: common stock, $1,600,000; treasury stock, $210,000; deferred income taxes, $250,000 an
    12·1 answer
  • Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has incr
    13·1 answer
  • Does anyone know what a good college would be to go to,for a vetanarian degree? and how many years does it take to become one?
    7·1 answer
  • Manhattan Enterprises manufactures cookware sets and sells the sets to department stores. Manhattan expects to sell 2,400 cookwa
    12·1 answer
  • Olsson Corporation received a check from its underwriters for $72 million. This was for the issue of one million of its $5 par s
    15·1 answer
  • Hudson Corporation will pay a dividend of $2.82 per share next year. The company pledges to increase its dividend by 3 percent p
    8·1 answer
  • Meat Puppets Company purchased equipment for $7,200 on December 1. It is estimated that annual depreciation on the equipment wil
    6·1 answer
  • Which of the following is a correct statement regarding the standard unmodified opinion audit report? Group of answer choices Th
    7·1 answer
  • Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Ca
    7·1 answer
  • Toyota's global success in the 1990s and early 2000s was based to a large extent on a network of world-class suppliers in Japan.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!