A country has a

Suppose that technological advancements stimulate $20 billion in additional investment spending. If the MPC = 0.6, how much will

grin007 [14]

Answer:

option (D) $50 billion.

Explanation:

Data provided in the question:

Additional investment spending = $20 billion

MPC = 0.6

Now,

Increase in aggregate demand = [1 ÷ (1 - mpc) ] × Investment

or

Increase in aggregate demand = [1 ÷ (1 - 0.4) ] × $20 billion

or

Increase in aggregate demand = (1 ÷ 0.4) × $20 billion

or

Increase in aggregate demand = 2.5 × $20 billion

or

Increase in aggregate demand = $50 billion

Hence.

the correct answer is option (D) $50 billion.

5 0

3 years ago

For the past two years, Swen Johannsen, owner/general manager of Swen's Fine Duds, a local men's clothing store, has fought to s

Viefleur [7K]

Answer:

Swen is using product/service repositioning strategy.

Explanation:

Product Repositioning simply refers to the art of altering the target markets perception of one's product and or services.

Swen is still in the clothing business. He has only changed the way he delivers it to the target consumers.

Of course, this sometimes calls for a change in product mix (which refers to altering the type of products being offered). However, the central idea of the strategy still holds as customers now see the business differently.

This type of strategy is easier to pull off for start-ups, or unpopular businesses trying to make a comeback. Where the business is a well-established brand, it can prove extremely difficult and may be costly.

Cheers.

4 0

2 years ago

Suppose annual inflation rates in the u.s. and mexico are expected to be 6% and 80%, respectively, over the next several years.

jeka94

<span>The answer is $.00102</span>

7 0

3 years ago

Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $153,000 Credit sale

rodikova [14]

Answer:

Balance of allowance for doubtful accounts after Bad debt Expense is $2700

Explanation:

given data

Cash sales= $153,000

Credit sales = $453,000

Selling and administrative expenses = $113,000

Sales returns and allowances= $33,000

Gross profit = $493,000

Accounts receivable = $140,000

Sales discounts = $17,000

doubtful accounts credit balance = $1,500

solution

we know here Total Bad Debit = 3% of accounts receivable

that is Total Bad Debit = 0.03 × $140,000

Total Bad Debit = $4200

so here allowance for doubtful account credit balance = $1500

so

Balance of allowance for doubtful accounts after Bad debt Expense will be

Balance of allowance for doubtful accounts = $4200 - $1500

Balance of allowance for doubtful accounts = $2700

6 0

3 years ago

Which of the following statements is CORRECT? a. The reported income of two otherwise identical firms cannot be manipulated by d

Delicious77 [7]

Answer: The correct answer is "d. The income statement for a given year is designed to give us an idea of how much the firm earned during that year.".

Explanation: The statement "d. The income statement for a given year is designed to give us an idea of how much the firm earned during that year." is CORRECT because In accounting, the income statement is a financial statement that shows in an orderly and detailed way how the result of the year was obtained during a given period.

This financial statement is closed, since it covers a period during which the costs and expenses that gave rise to its income must be perfectly identified. Therefore, it must be perfectly applied at the beginning of the accounting period so that the information presented is useful and reliable for decision making.

8 0

3 years ago