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shusha [124]
3 years ago
6

If the marginal propensity to consume is 0.8, full-employment output is $14 trillion, and current output is $13.5 trillion, then

investment spending must _____ to reach fullemployment output. A) increase by $0.5 trillion B) decrease by $0.5 trillion C) increase by $0.1 trillionD) increase by $0.4 trillion
Business
1 answer:
CaHeK987 [17]3 years ago
3 0

Answer:

c. Increase by $0.1 trillion

Explanation:

Investment spending Multiplier is a concept in economics that measure how a given change in investment increases output. So if current output of $13.5 trillion must increase to $14 trillion, we employ the multiplier formula to derive what amount of investment spending is needed to get $o.5trillion increase in output.

(change in output)/ (change in investment) = 1/(1-mpc)

Note that mpc means marginal propensity to consume.

Let change in investment = X

change in output = 14 - 13.5 = $0.5trillion

mpc = 0.8

(0.5)/X = 1(1-0,8)

0.5/X = 1/0.2

cross multiply

X = 0.1

Thus the needed change in investment is an increase of $0.1 trillion. In other words, if investment increases by $0.1 trillion, current output will increase from $13.5 trillion to $14 trillion.

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77julia77 [94]

Answer:

The correct answer is C. A pure monopolist.

Explanation:

The pure monopoly arises when there is a total absence of competition, due to independent entry barriers to the company's competitive capacity.

A single company offers a product that has homogeneous characteristics, which has no substitutes and for that reason has a large number of buyers. There are also economic, technological or legal barriers that prevent the entry of potential competitors. That is, there are barriers to entry.

3 0
3 years ago
Lego Company has used the FIFO method since it began operations in 2023. Lego changed to the weighted average method in 2026. Th
Viktor [21]

Answer:

c. $14,000 increase

hope it helps

mark me as brainloeast

5 0
3 years ago
You purchase 4,000 bonds with a par value of $1,000 for $978 each. The bonds have a coupon rate of 7.7 percent paid semiannually
drek231 [11]

Answer:

The amount to be received onthe coupon date is $154000.

The amount to be received at bonds maturity is $4154000.

Explanation:

amount received on the next coupon date = 4000*$1000*7.7%*6/12

                                                                       = $154000

amount to receive when the bonds mature = face value + interest

= 4000*$1000 + $154000

= $4,000,000 + $154000

= $4154000

Therefore, the amount to be received onthe coupon date is      $154000 and the amount to be received at bonds maturity is $4154000.

7 0
3 years ago
A work group _______ may be defined as a standard that is shared by group members and that regulates member behavior within an o
Ludmilka [50]

A work group norms can be defined as a standard shared by the group's members and which regulates the behavior of the members within an organization.

<h3 /><h3>What is the relevance of a company's norms and policies?</h3>

They are instruments that direct the behavior of employees, providing the set of values, attitudes and rules that must be followed in the work environment so that processes flow correctly and create an organizational culture favorable to cooperation and development.

Therefore, norms help in the standardization of organizational actions, generating the regulation and control of the behavior of the members of a company.

Find out more about organizational norms here:

brainly.com/question/26965722

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7 0
1 year ago
A July sales forecast projects that 5,000 units are going to be sold at a price of $12.50 per unit. The management forecasts 2%
Pavlova-9 [17]

Answer:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars

And the correct answer for this case would be:

$63,750

Explanation:

For this case the original number of sales for this case is 5000 units and the unitary price is given by 12.5 \frac{dollars}{unit}

And the total sales for the original case would be given by:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars

And the correct answer for this case would be:

$63,750

7 0
3 years ago
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