Answer:
First we need to find the increase in her disposable income by subtracting the old disposable income from the new disposable income.
Old Disposable income= 40,000
New disposable income = 50,000
Change in disposable income = 50,000-40,000= 10,000
Although her mpc is 0.8 we need to find out what proportion of her disposable income does she spend on consumption.
So her disposable income was 40,000 and consumption was 36,000
36,000/40,000= 0.9
This means that Jane spends 90% of her dispoasble income on consumption, so if her disposable income increase by 10,000 her increase in consumption was
0.9*10,000= 9,000
Increase in consumption = $9,000
Explanation:
Answer:
In the absence of technological innovation, massive capital investments yielded diminishing marginal returns.
Explanation:
The economy of the Soviet Union was a command economy where the government decided how resources would be allocated. The four factors of production are land, labor, capital and entrepreneurship. In a command economy, entrepreneurship is virtually nonexistent, so that leaves three factors: land, labor and capital.
The government allocated a lot of resources into increasing the capital factor, but capital factor will always yield diminishing marginal returns unless new technological innovations are developed. During many years, the Soviet Union was the technological leader of the world, but as time passed and with a complete absence of entrepreneurship, technological advances halted.
Answer:
C.
Explanation:
From the various options listed, the one that would be considered a systematic-risk event would be if the Federal Reserve increases interest rates 50 basis points. This is mainly because this event would cause various entire markets to be affected, as increasing the reserve interest rates causes the value of the country's currency to devalue and become more expensive to make purchases as well as obtain loans. Therefore affecting a wide range of entire markets throughout the country.
Answer:
a. True
Explanation:
The Activity variance is based on the difference in actual level of activity used in flexible budget and the level of activity accounted in the planning or master budget
The two major types of transaction that affects the international flow of money are b. debits and credits.
When you say debits, it the liabilities and when you say credits its the assets. These two is the major transaction that makes a big impact to the economy.
