Answer: Option (b) is correct.
Explanation:
Given that,
Marginal propensity to save (MPS) = 0.25
Investment spending (I) = $600 million
Government purchases increases by $150 million
MPC - Marginal propensity to consume
MPC + MPS = 1
MPC = 1 - 0.25
= 0.75
Government spending multiplier = 
= 
= 4
Increase in Real GDP = Government spending multiplier × Increase in government purchases
= 4 × 150
= $600 million
Likely B. Liquidity is basically the measurement of how quickly a given investment can be turned into cash. If you can sell it or take money from it quickly, it is liquid. Any one of the others (A, C or D) can be withdrawn from in a short time, and thus are very liquid. CDs, however, are set to a specified amount of time. You deposit money for, say, 5 years and then are allowed to withdraw it, not before. Thus, it is not liquid.
Answer:
- Food service managers are facing a larger percent decrease at 3.31%
Explanation:
The percentage decrease in chefs/head cooks is:
= (100,600 - 99,800) / 100,600
= 0.795%
= 0.8%
Percentage decrease for food service managers is:
= (320,600 - 310,000) / 320,600
= 3.31%
Answer:
Date Account Title Debit Credit
April Factory Overhead $16,720
Indirect materials $10,500
Wages payable $4,000
Utilities payable $ 500
Accumulated Depreciation $ 620
Small tools $ 370
Equipment rental $ 730
