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raketka [301]
3 years ago
9

Suppose that the marginal propensity to consume in Frugalia is 0.60. The government of Frugalia enacts a stimulus program that i

ncreases spending by $10 million. By how much will aggregate expenditures increase in Frugalia?
a) $4 million
b) $10 million
c) $25 million
d) $40 million
Business
1 answer:
fgiga [73]3 years ago
5 0

Answer:

option (c) $25 million

Explanation:

Data provided in the question:

The marginal propensity to consume in Frugalia, MPC = 0.60

Increase in spending = $10 million

Now,

The total increase in income

= \frac{\textup{1}}{\textup{1-MPC}}  × Increase in spending

on substituting the respective values, we get

= \frac{\textup{1}}{\textup{1-0.6}}  × $10 million

=  \frac{\textup{1}}{\textup{0.4}}  × $10 million

or

= 2.5 × $10 million

or

= $25 million

Hence,

The answer is option (c) $25 million

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Answer:

B) not likely to have jurisdiction over the case because QuickAds is based in Georgia.

Explanation:

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For a foreign company to be served by a state court, it must carry on “continuous and systematic” affiliations with residents of the state which makes them “essentially at home”. The company's operations must be substantial enough to make the company at home, i.e. it must carry a significant amount of business within the states boundaries.

Apparently this is not the case with QuickAds, so Alabama state courts will not have jurisdiction over it.

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Answer:

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This means that should Bolivar be caught listening to private conversation he can be sued.

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3 years ago
The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm's stock
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Answer:

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Answer:

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