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aivan3 [116]
3 years ago
9

Assume that the economy is at equilibrium at $10 trillion, with a marginal propensity to consume of 0.75. If exports rise by $0.

5 trillion and imports increase by $0.7 trillion, equilibrium income will: a. fall by $0.2 trillion. b. not change. c. fall by $0.8 trillion. d. rise by $2 trillion.'
Business
1 answer:
Arlecino [84]3 years ago
7 0

Answer:

Option (c) is correct.

Explanation:

Multiplier effect = 1 ÷ (1 - marginal propensity to consume)

                           = 1 ÷ (1 - 0.75)

                           = 4

Net exports = Exports - Imports

                    = 0.5 - 0.7

                    = (-0.2)

Impact on the equilibrium income  = Net exports × Multiplier effect

                                                          = (-0.2) × 4

                                                           = (-0.8),

so, the equilibrium income will fall by $0.8 trillion.

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A.)Active

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Intuitive listening means that the person who is listening is trying to understand as well as imbibe what the other is saying to a deeper level.

This involves actively thinking about what the other person is saying and then critically discerning what it really means above the meaning of its own words.

Then the person who is listening reaches to the 'deeper' meaning or the essence of what the other person is trying to say.

This is the process that is involved in intuitive listening.

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4 years ago
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You decide that as soon as you are financially able, you will hire an agency to put together an advertising plan for you. Unfort
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<u>Explanation:</u>

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3 years ago
Allison Cobb sells homemade knit scarves for $ 25 each at local craft shows. Her contribution margin ratio is 60​%. ​Currently,
Oksanka [162]
<h2><u>Answer</u>:  Break-Even point ( in units)= Fixed Costs ÷ (Sales price per unit – Variable costs per unit) </h2>

Allison will have to sell 6 extra scarves next year just to pay for rising entrance fee​ costs.

<h2><u>Explanation</u>:</h2>

Formula :

Break-Even point ( in units)= Fixed Costs ÷ (Sales price per unit – Variable costs per unit)

Given, Price of knit scarves = $25

Contribution margin ratio = 60%

Contribution margin per unit = (Price of knit scarves) x (Contribution margin ratio )

= $(25 x 0.60 )

= $15

Current entrance fees = $900

Percentage in increase in entrance fees = 10​%

Increase in entrance fees = 10% of  $900 = $90

Extra scarves to be sold =\dfrac{\text{Increase in extrnace fees}}{\text{Contribution margin per unit}}

\\\\=\dfrac{90}{15}=6

Allison will have to sell 6 extra scarves next year just to pay for rising entrance fee​ costs.

7 0
3 years ago
Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that
aivan3 [116]

Because of the political instability, what will happen to U.S. is that its Net exports would fall which by itself would decrease U.S. aggregate demand.

When the people from other countries feared for their asset, they will stop importing goods from U.S.

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7 0
2 years ago
A dry cleaner uses exponential smoothing to forecast equipment usage. The August forecast was 88% and the actual was 89.6%. Use
Sophie [7]

Answer:

1. 88.16%

2. 88.54%

Explanation:

a. Prepare a forecast for September

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Forecast for September(Ft +1) will therefore be;

Using the formulae

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= 88% + 0.1(89.6% - 88%)

= 88% + 0.16%

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Also, actual usage for September (At) is 92%

Therefore, forecast for October (Ft + 1) will be,

Using the formula

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= 88.16% + 0.1(92% - 88.16%)

= 88.16% + 0.384%

= 88.54%

7 0
3 years ago
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