If the mpc is 0.70 and investment increases by $3 billion, the equilibrium gdp will

1 answer:

7 0

<span>If the MPC is 0.70 and investment increases by $3 billion, the equilibrium GDP will increase by $10 billion.

The GDP is the Gross Domestic Product and the MPC is the marginal propensity to consume. The MPC tracks that a raise in pay will increase consumers spending on goods and services. If there is an increase in spending budget, then the GDP will increase because of more spending power.
</span>

You might be interested in

Dwyer Company reported the following results for the year ended December 31, 2007, its first year of operations: 2007 Income (pe

Art [367]

Answer: $315,000 deferred tax asset

Explanation:

The amount that Dwyer should record as a net deferred tax asset or liability for the year ended December 31, 2007 will be calculated thus:

= ($2400000 – $1500000) × 35%

= $900000 × 35%

= $900000 × 35/100

= $900000 × 0.35

= $315000.

Therefore, the answer is $315,000 deferred tax asset

8 0

2 years ago

Are budgets part of the performance measurement system or the performance reward system? a. Part of neither the performance meas

Helga [31]

Answer:

b. Part of both the performance measurement system and the performance reward system

Explanation:

Both are linked according to the objectives and golas.

Performance measure is a quantifiable expression of the amount, cost, or result of activities that indicate how much, how well, and at what level, products or services are provided to customers during a given time period.

Performance and reward strategies are driven by the concept that employees are not inherently born with the desire to come to work and put in their maximum effort every day for no reason at all. ... An effective performance and reward strategy aligns with organizational goals and objectives

7 0

2 years ago

Which statements describe a Treble Clef correctly? Pick Two

mariarad [96]

Answer: c and a

Explanation:

4 0

2 years ago

Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at Janu

lesantik [10]

Answer:

Compensation expense of $510,000 will be recorded each year 2021-2024

Explanation:

Stock option gives a right to employee to buy an amount of company stock at a given price in specified time period. It is charged as expense according to the fair value of the stock option every year until exercise-able date.

Compensation expense of $510,000 will be recorded each year 2021-2024

All the working is made in an MS Excel file and answer is made accordingly. Please find it.

Download xlsx

7 0

2 years ago

Suppose you are committed to owning a $215,000 ferrari. if you believe your mutual fund can achieve an annual return of 10.8 per

Pie

Answer: I must invest <u>$85424.14</u> today in order to buy a Ferrari nine years from now on the day I turn 30.

We have

Price of the Ferrari nine years from now (Future Value - FV) $215000

Expected Rate of return on the mutual fund (r) 10.8%

Time until I turn 30 (n) 9 years