1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Airida [17]
4 years ago
13

Why does a​ $1 increase in government purchases lead to more than a​ $1 increase in income and​ spending?

Business
1 answer:
nexus9112 [7]4 years ago
3 0

Answer:

If there is $1 increase in the government purchases, this will increase the income and spending by more than $1. This increase is due to the government spending multiplier.

The increase in government spending will lead to increase the aggregate demand and national income of a nation.Therefore, this will increase the induced spending.

That's why one dollar increase in government spending will lead to more than one dollar increase in income and​ spending.

You might be interested in
An investor begins a periodic payment deferred variable annuity purchase program. one respect in which this differs from purchas
dalvyx [7]

An investor begins a periodic payment deferred variable annuity purchase program. one respect in which this differs from purchasing a mutual fund is that <u>the investor in the variable annuity contract reports no taxable consequences during the accumulation period.</u>

An investor is any individual or other entity (consisting of a firm or mutual fund) who commits capital with the expectancy of receiving monetary returns. buyers come from a ramification of backgrounds. all of us who makes choices approximately giving finances to a positive monetary account or challenge is an investor.

An investor is the marketplace participant most people most usually buddies with the inventory market. investors are folks that buy shares of a company for the long term with the belief that the enterprise has sturdy future potentialities.

Learn more about investor here: brainly.com/question/26173141

#SPJ4

8 0
1 year ago
The sustainable growth rate of a firm is best described as the _____ growth rate achievable _____.
galben [10]

The sustainable growth rate of a firm is best described as the Minimum growth rate achievable assuming a 100percent-person retention ratio.

This is further explained below.

<h3>What is a sustainable growth rate?</h3>

Generally, PIMS identifies expansion as a key factor in the achievement of organizational goals. Market share, market growth, the marketing expenditure to sales ratio, and a commanding market position are just a few of the 37 factors cited as crucial to a company's success.

In conclusion, A company's sustainable growth rate may be most accurately stated as the lowest growth rate that may be expected with maintaining a retention ratio of 100 Maximum rates of expansion that may be achieved with an infinite amount of debt funding.

The lowest rate of growth can be achieved by the company while keeping the equity multiplier unchanged.

Read more about the sustainable growth rate

brainly.com/question/5452967

#SPJ1

3 0
1 year ago
Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.
Alenkinab [10]

Answer: Check attachment

Explanation:

Note that, in the attachment, the total expense was calculated as the addition of the selling expense and the general and administrative expenses. This will be:

= $49700 + $34110

= $83810

Operating income was calculated as:

= Gross profit - Total expenses

= $107200 - $83810

= $23390

Check the attachment for further details.

4 0
3 years ago
Luna wanted to convince the technology department at her company to install new accounting software. Some staff members supporte
Gnom [1K]

Luna realized that the undecided group was her target audience  so she focused most of her effort on them.

<u>Explanation: </u>

A targeted audience is a publication, advertising or other text.   It is a particular group of consumers in the standard target market of marketing and advertising, known as targets or recipients of a specific ad or email.

In the end, it all includes assessing relevance for a target audience profile. You will attract a customer more often if your services and the goods you deliver suit what your audience wants.  

If your customer you want is "everybody," it's very difficult for you to communicate in a deeper way with anyone. The more connected you are to others; the more likely you are to be a protector and a loyal user of your company.

7 0
4 years ago
Several years ago, The Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune
lorasvet [3.4K]

Answer:

the present value of the annuity = $4,523,638

Explanation:

this is an ordinary annuity:

annual payment = $9,420,713 / 20 = $471,035.65

number of periods = 19 periods

interest rate = 8%

therefore, the present value annuity factor = 9.6036

the present value of the annuity = $471,035.65 x 9.6036 = $4,523,637.97 ≈ $4,523,638

4 0
3 years ago
Other questions:
  • Usually, the decision to notify parties outside the client’s organization regarding noncompliance with laws and regulations is t
    6·1 answer
  • Angler Manufacturing makes fishing poles and sells them for $30 each. The firm’s variable costs are $12 per unit, and its total
    8·1 answer
  • At an output level of 84,000 units, you calculate that the degree of operating leverage is 1.80. Suppose fixed costs are $180,00
    5·1 answer
  • Manuel found a wrecked Trans Am that he could fix. He bought the car for 65% of the original price of $7200. What did he pay for
    5·1 answer
  • Joe wants to use pictures from the Internet in a word processing program. Which is the most important aspect that Joe should con
    10·2 answers
  • Millwell Manufacturing redesigned its facility layout to group similar equipment and functions together, and to allow flexibilit
    5·1 answer
  • erry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering an offer from a subcontractor to pro
    8·1 answer
  • Wayne Co. had a decrease in deferred tax liability of $20 million, a decrease in deferred tax assets of $10 million, and an incr
    14·1 answer
  • What functions does work serve in modern society?
    7·1 answer
  • When we put a price tag on goods and services, we are using money as a Group of answer choices store of value. barter token. mea
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!