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prisoha [69]
3 years ago
6

Suppose equilibrium savings equals $750 billion, and equilibrium GDP equals $3,500 billion. Investment spending rises to $900 bi

llion, and equilibrium level of real GDP increases by $500 billion. Assuming everything else remains constant, the value of the spending multiplier is?
Business
1 answer:
aleksandr82 [10.1K]3 years ago
7 0

Answer:

Multiplier = 3.33

Explanation:

Investment / Spending Multiplier denotes increase in Income multiple times increase in causal Investment.

Multiplier = Change in Income / Change in Investment = 1 / 1 - MPC

<em>M</em> = ΔY/ΔI = 1/ (1-MPC)

At Equilibrium, Investment = Savings = 750. Change in Investment = 900 - 750 = 150. Change in Income = 500.

M = 500/150 = 3.33

3.33 = 1/(1-MPC)

MPC = 0.70

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kari74 [83]

The main activities and processes of e-commerce involve the activities of buying and selling a product or service traded over the internet.

<h3 /><h3>What are the mechanisms of the marketplace?</h3>

These are the types of interactions between sellers and buyers and e-marketplaces. The main ones are:

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2 years ago
Concerning outlining, which of the following defines organizing your main points using a cause and effect relationship? Question
viktelen [127]

The correct answer is A. Causal order

Explanation:

Outlining is a stage of prewriting that involves organizing the main ideas, sub-ideas, and other details that will be included in the text. Additionally, the content is organized according to the general order of the text, in the case of a cause and effect text, this focuses on showing the effects of one event or the cause of it. For example, a text can describe the causes or effects of the Cold War. In this context, a text that shows a cause and effect relationship needs to have a causal order in the outline, which means including the main event and then listing the causes and effects that act as main ideas of this outline.

3 0
4 years ago
A portfolio of equity securities that are traded on a national exchange is donated to a private, not-for-profit college as an en
tensa zangetsu [6.8K]

Answer:

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Explanation:

3 0
4 years ago
A special agreement between the lender and the borrower to delay a foreclosure is known as what...? Lis Pendens Postponement For
Anettt [7]

Answer:

Forbearance

Explanation:

Forbearance is a term used in mortgaging that means an agreement between two parties; borrower and lender, to delay foreclosure.

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Cheers

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3 years ago
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Masteriza [31]

Answer:

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Explanation:

The law of one price establishes that the product or service price will remain the same for all the entire world. It is necessary to take into account for this law that the price of the currency  needs to be also the same and that the price of the product or service would not be affected by other factors such as additional buyers or sellers in the market.

On the other hand the purchasing power parity refers to the idea of an equilibrium of currencies in exchange rates, it means that the power for purchasing will be represented in the same way in the different countries, and it is important to mention that this theory is base in the law of one price.

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4 years ago
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