Answer:
B. Firms that produce advertising trade in a "two-sided market".
Explanation:
It is a business model for economic exchange between two distinct user groups.
Answer: Greater the MPC
Explanation:
The Marginal Propensity to consume refers to how much Economic consumption increases or decreases due to a change in income.
The formula for MPC is;
= Change in Consumption/Change in Income.
Consumption is a major component of GDP so it has a direct influence on Economic output. In other words, the larger the level of consumption, the higher the higher the output.
As evident from the equation, if the change in consumption is higher than the change in income, the MPC will be larger. A larger MPC therefore corresponds to a higher Consumption.
If a higher Consumption leads to a larger output and a larger MPC corresponds to a higher Consumption then that means that a higher MPC leads to a larger output.
Answer: $90,000
Explanation:
If sales in 2008 and 2009 were steady at $30 million, but the gross margin increased from 2.9% to 3.2% between those years, the amount by which the cost of sales would be reduced would be:
= $30 million × (3.2% - 2.9%)
= $30 nillioy× 0.3%
= $30 million × 0.003
= $90,000
Complete Question:
The financial friction:
O is equal to zero when the economy is in its long-run equilibrium.
O is negative in Japan.
O lowers the borrowing rate below the nominal federal funds rate.
O is equal to the rate of inflation.
O is lower in uncertain economic situations.
Answer:
The financial friction:
O is equal to zero when the economy is in its long-run equilibrium.
Explanation:
Financial friction is the difficulty that one encounters in financial transactions. It includes the total time, effort, money, and tax effects of the process of gathering information and concluding a transaction such as the buying of a stock or the borrowing of money.
When an economy is in the long-run equilibrium it naturally implies that aggregate demand equals aggregate supply. And at this equilibrium, the long-run marginal cost curve is equal to the long-run average cost curve. There is, therefore, no profit or loss. Financial friction representing the cost of making a transaction equals zero because the suppliers of economic activities will not make any profit or loss.