Answer:
(B) $20 billion
Explanation:
Given a certain level of MPC, an increase in government spending (G) by a certain amount translates to an increase in aggregate demand (AD) through the relationship below.
where Δ means <em>change.</em>
<em />
Therefore, given ΔAD of $50 billion, and MPC of 0.6,
= 
= 
= ΔG = 50 * 0.4 = 20
Therefore, increase in government purchases = $20 billion.
Answer:
Future value equals the present value multiplied by one plus the rate of interest in decimals.
Explanation:
Future value = present value x (1 + interest rate)
Interest rate = present value x interest rate
The right answer for the question that is being asked and shown above is that: "5.8 percent." Paul invested $10,000 in a security that will double in value in ten years. Approximately the annual rate of return is this investment making is <span>5.8 percent</span>
Answer:
Cash collected from customers =$574,000.
Explanation:
The cash collected ca be worked out using the formula below:
<em>Opening balance of account. receivable + sales on account - Closing balance of account receivable</em>
<em>Note that addition credit sales increases the amount in the receivable account.</em>
So we can apply this formula as follows:
112,000 + 560,000 - 98,000
= $574,000.
Cash collected from customers =$574,000.
