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rjkz [21]
3 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]3 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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Hello!
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The answer to your questions is "identifying stakeholders".
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The main output of the identifying stakeholders process is the stakeholder register.
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7 0
3 years ago
A company has a beginning owner’s capital of $100,000. It has net loss for the current year of $50,000 and paid $10,000 in divid
11111nata11111 [884]

Answer:

The ending owner’s capital for the company is $40,000

Explanation:

For computing the ending owner capital, the following equation should be used which is shown below:

Ending owner capital = Beginning owner capital - net loss - dividend paid to shareholders

= $100,000 -- $50,000 - $10,000

= $40,000

The net loss and dividend decrease the owner equity which ultimately decreases the capital. So, we deduct these amounts.

Hence, the ending owner’s capital for the company is $40,000

5 0
3 years ago
If Zephyr Electronics obtains an 18 percent return on invested capital, which of the following willhelp determine if it has a co
nika2105 [10]

Answer:

A) comparing the return to the return on invested capital obtained by other firms in the industry.

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A firm that has developed a competitive advantage over its competitors will to able to either produce the same amount of output using fewer resources, or produce higher output using the same resources than its competitors. A competitive advantage means being more efficient.

So if we want to determine if Zephyr Electronics 18% return on invested capital (ROIC) provides them a competitive advantage over its competitors, we have to compare Zephyr's ROIC with the ROIC of the rest of the major firms in the industry.

7 0
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4 0
3 years ago
If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price will __________ and
mina [271]

Answer:

Rises

Rises

Explanation:

If the demand for a good rises more than the fall in supply, both equilibrium price and quantity would increase.

Refer to the attached image for a graphical explanation.

I hope my answer helps you

3 0
3 years ago
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