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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

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Wildhorse Co. entered into these transactions during May 2017, its first month of operations. 1. Stockholders invested $31,500 i
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Answer:

Kindly refer to the attached file for the tabular solution

Explanation:

Every transaction flows through the balance sheet and most times the stockholders equity.

This table carefully highlights the impact of each entry to the stockholders equity

?

5 0
3 years ago
Your stockbroker executed the following trades for your account: • 50 shares of Kaiser Aluminum at $104 a share • 100 shares of
katrin2010 [14]

Answer:

$46.51

Explanation:

The weighted arithmetic mean can be defined as:

M = \frac{n1P1 + n2P2 +n3P3}{n1 +n2+n3}

Where n is the number of shares and P is the share price, then:

M= \frac{50*104 + 100*25.25+ 20*9.125}{50+100+20} \\ M= \frac{7907.5}{170}\\M= 46.514

Based on this, the weighted arithmetic mean price per share is $46.51

4 0
3 years ago
Ben and Carla Covington plan to buy a condominium. They will obtain a $229,000, 20-year mortgage at 5.0 percent. Their annual pr
Alla [95]

Answer:

$1,943.06

Explanation:

Monthly mortgage payment: $6.6 X $229 = $1,511.4

Monthly property taxes: $1,550/12 = $129.16

Monthly property insurance: $630/12 =$52.5

Monthly association fee: $250

Total monthly housing payment: $1,943.06

4 0
3 years ago
Read 2 more answers
However, when the entire residence staff listened to our argument again, they became convinced that the system wasn't fair. howe
kykrilka [37]
There is a difference in the change of pronounce used. The best (and probably correct answer) is the first sentence: <span>However, when the entire residence staff listened to our argument again, they became convinced that the system wasn't fair. The pronounce 'they' refer to the collective term of 'entire residence staff'.</span>
5 0
3 years ago
Two​ firms, A and B​, must each choose either a low price or a high price for their product. The payoff matrix shows the profit
ahrayia [7]

Answer: 1. A.Both firms will choose the low price.

2. B. Both firms would choose the high price.

Explanation:

1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.

This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.

If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.

2. If the firms could cooperate with each​ other, both firms would choose the high price.

The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.

If you need any clarification do comment. Cheers.

4 0
3 years ago
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