Answer:
(a) 0.7
(b) 3.33
(c) -$210
(d) -$147
(e) -$1 trillion
Explanation:
(a) Marginal propensity to consume (MPC) = 0.7
(b) Multiplier of this economy:
= 3.33
(c) Decrease government purchases by $300 billion,
Initial change in consumption = Change in government purchases × MPC
= $300 × 0.7
= -$210 billion
(d) This decreases income yet again, causing a second change in consumption equal to:
= Initial change in consumption × MPC
= -$210 × 0.7
= -$147 billion
(e) The total change in demand resulting from the initial change in government spending is:
= Change in government purchases × Multiplier
= $300 × 3.33
= -$1 trillion
Answer:
The brand that is the exception is Nike
Explanation:
Nike marketing strategy is a very brilliant strategy in the sense that they uses psychographic segmentation approach to make its brand more attractive to the target customers. They're socially- conscious of what the customer want. Nike uses separate strategy to aim their immediate users, athletes and all sportsmen which enables them to cap the market potential of the different segments. They already possess structures to enabled them survive in changing market.
Answer:
According to the basic DCF stock valuation model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock.
A. True
Explanation:
The DCF (Discounted Cash Flow) method of stock valuation is based on the assumption of the time-value of money. This approach considers that the cash flow that is received today is much more than the same amount of cash flow received any other time in the future. And the time of the future receipt or payment affects the amount of the cash flow, with decreasing consequences based on increasing time into the future.
Answer:
The correct answer is d. few firms possess superior capability in all primary and support activities.
Explanation:
Outsourcing shifts tasks, operations, jobs, or processes to an external workforce, by contracting with a third party for a significant period of time. A major reason outsourcing is effective is that some firms might not be capable to perform all secondary and primary activities. A company may implement a new process and outsource the work to trained workers, instead of investing the time, money and effort to train and maintain internal workers.
Answer:
B. total revenue will decrease.
Explanation:
The initial revenue for breakfast cereal is given by the product between the price of cereal (P) and the demanded quantity (D):
After a 25% decrease in price and a 20% increase in demand, the new revenue will be:
The new revenue is 90% of the original revenue; therefore, total revenue will decrease.
