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rjkz [21]
2 years ago
7

In 2009 President Obama and Congress increased government spending. Some economists thought this increase would have little effe

ct on output. Which of the following would make the effect of an increase in government expenditures on aggregate demand smaller?
a.
the MPC is small and changes in the interest rate have a small effect on investment

b.
the MPC is small and changes in the interest rate have a large effect on investment

c.
the MPC is large and changes in the interest rate have a small effect on investment

d.
the MPC is large and changes in the interest rate have a large effect on investment
Business
1 answer:
Ksenya-84 [330]2 years ago
3 0

Answer:

The correct answer is option b.

Explanation:

An increase in government expenditure will have a smaller effect on the aggregate demand if the MPC is smaller. This happens because the consumers will save the major share of their income and not consume it if MPC is small.  

This will not increase consumer spending as much as they should. And thus aggregate demand will increase by a small amount.  

The change in aggregate demand will also be smaller if the investment is interest elastic. The government increases spending by borrowing from the loanable funds market.  

This increases the demand for loanable funds. The interest rate, as a result, increases. This increase in interest rate makes borrowing costlier for private investors.  

This further causes the investment expenditure to increase as much as it should. And thus aggregate demand will increase by a small amount as well.

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Arlecino [84]

Answer: A stock exchange, share market or <em>Bourse </em>is a place where people meet to buy and sell shares of company stock. Some stock exchanges are real places, like the <em>New York Stock Exchange</em>, others are virtual places <em>the NASDAQ.</em>

Explanation:

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2 years ago
The Operations Manager for Shadyside Savings &amp; Loan orders cash from her home office for her very popular "BIG BUCKS" automa
notsponge [240]

Answer:

3,000 $100 bills equivalent to $300,000

Explanation:

The economic order quantity (EOQ) is the optimum quantity of a good to be purchased or required at a time in order to minimize ordering and carrying costs in inventory.

EOQ = the square root of [(2 times the annual demand in units times the incremental cost to process an order) divided by (the incremental annual cost to carry one unit in inventory)]

  • annual demand in units = 12,500 x 12 = 150,000
  • incremental costs to process an order = $300
  • incremental annual cost to carry one unit in inventory = 10% x 100 = $10

EOQ = √[(2 x 150,000 x $300) / $10] = √($90,000,000 / $10) = √9,000,000 = 3,000 bills

8 0
2 years ago
Marketers must weigh carefully the costs of additional information against the resulting from it.
viva [34]

Marketers must weigh carefully the costs of additional information against the benefit resulting from it.

What are marketers?

A marketer is a person who advertises an organization's products and services. They identify the tactics that can increase sales and revenue while making sure that these tactics are in line with consumer demands and market demands.

Therefore,

Marketers must weigh carefully the costs of additional information against the benefit resulting from it.

To learn more about Marketers from the given link:

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8 0
1 year ago
1) This is a situation that exists when a country imports more than it exports
Vinil7 [7]

Answer:

Not a proper question.

Explanation:

3 0
3 years ago
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Jake owns a company called Boat Builders, LLC and one evening he took several of his employees out after work to a bar. After ea
lakkis [162]

Answer:

<u>Yes, because Boat Builders, LLC failed to exercise a reasonable standard of care at their premises.</u>

Explanation:

<em>Remember, </em>we are told, "Jake... invited them back to the Boat Builders premises," meaning they (Boat Bilders, LLC) had a duty of care responsibility toward all of his employees present.

Note we are told, "Mark made light of it but gave Jake a menacing look so Jake dropped it," this was a moment that shows Jake's negligence because as the owner of Boat Builders he had a duty of care to ensure no one is hurt without their own fault within their premises (which included their "parking lot").  

4 0
3 years ago
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