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
Elan Coil [88]
3 years ago
13

If the marginal propensity to save (MPS) is 0.25, investment spending (I) is $600 million, and the government increases its purc

hases of goods and services (G) by $150 million, then real GDP increases by
A) 200 million
B) $600 million
C) $800 million
D) $2,400 million
Business
1 answer:
trasher [3.6K]3 years ago
8 0

Answer: Option (b) is correct.

Explanation:

Given that,

Marginal propensity to save (MPS) = 0.25

Investment spending (I) = $600 million

Government purchases increases by $150 million

MPC - Marginal propensity to consume

MPC + MPS = 1

MPC = 1 - 0.25

= 0.75

Government spending multiplier = \frac{1}{1 - MPC}

= \frac{1}{1 - 0.75}

= 4

Increase in Real GDP = Government spending multiplier × Increase in government purchases

= 4 × 150

= $600 million

You might be interested in
Write a reflection about your learning in this unit. Your reflection should be at
Step2247 [10]

It should be noted that money can be used as a medium of exchange, store of value, standard for deferred payment, and a unit of account.

The attributes of financial assets include liquidity, risk, and the rate of return. It should be noted that financial institutions affect us.

Banks are related to our daily lives. Businesses also rely on financial institutions to make transactions

The United States banking system was stabilized due to the creation of a single national currency. Also, the adoption of a gold standard system was another factor.

Learn more about banks on:

brainly.com/question/895070

5 0
2 years ago
E6-15 Allocating Transaction Price to Performance Obligations [LO 6-5] A company separately sells home security equipment and 12
Oliga [24]

Answer:

    Particulars                                                      Amount

1. Revenue allocated to the equipment              $330

   for each bundled sales

   {$990 * $280 / $280 + $560}

2. Revenue allocated to the service                    $660

   for each bundled sales

    {$990 * $560 / $280 + $560}

3. Sales revenue to be reported in income         $660

   statement

   

    Service revenue to be reported in                    $55

    income statement

     ($660/12)

7 0
3 years ago
Compare a stock insurer to a mutual insurer with respect to each of the following: a. Parties who legally own the company b. Rig
NemiM [27]

Answer:

Explanation:

a. Parties who legally own the company

The kind of corporation that is owned by the shareholders is a stock insurer. While when policy holders elect board of directors then that is call a mutual insurer. This board of director enjoys control over the management control of the corporation.

b. Right to assess policyholders additional premiums

An asses sable policy can not be issued by the stock insurers, however policy of such kind can be issued by the mutual insurer. For mutual insurer, this policy depends on what kind of insurer is in place.

c. Right of policyholders to elect the board of directors

For stock insurer, its is the stockholders who elect the board of directors. While for mutual insurer, its the owners who elect the board of directors who have an effective control over the management.

5 0
3 years ago
Which are the best examples to use in a career portfolio?
LekaFEV [45]
The last one so work samples etc are the best examples
8 0
3 years ago
The teenage market is a market that is categorized in what way?
grin007 [14]
The closest answer that i can think of is categorized by consumer. By consumer, we are saying that you have to categorize them based on what they like meaning based on what they like at their age. For example, if you are going to market a pizza store to them, one of the best ways to do that is to position your pizza store as a place for friends to hang out because teenagers, at that age, love to hang out with friends and to be cool. So you have to categorize a teenage market by their interests when they are at that certain adolescent age
5 0
3 years ago
Other questions:
  • MC Qu. 142 Memphis Company anticipates total... Memphis Company anticipates total sales for April, May, and June of $840,000, $9
    7·1 answer
  • Lakeland Inc. employees get 40 hours paid leave each year to pursue volunteer projects. The company runs a service day that host
    7·1 answer
  • A company acquired mineral rights for $7,500,000. The mineral deposit is estimated at 600,000 tons and during the year 100,000 t
    5·1 answer
  • At nick's bakery, the cost to make homemade chocolate cake is $3 per cake. as a result of selling three cakes, nick experiences
    9·1 answer
  • Use the following information to determine this company's cash flows from financing activities.
    11·1 answer
  • A copy machine costs $45,000 when new and has accumulated depreciation of $44,000, Suppose Print and Photo Center junks this mac
    14·1 answer
  • X7x 654x 46557775479x9=
    11·1 answer
  • Review the transactions and determine the accounts, the account types (use assets, liabilities, equity, dividends, revenue, and
    15·1 answer
  • Design quality is considered a(n) __________ for the firm. Multiple choice question. insignificant cost strategic decision servi
    13·1 answer
  • XYZ Co. manufactures bicycles. Demand for this year’s model is expected to occur at a constant annual rate of 9200 items. One bi
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!