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Ilia_Sergeevich [38]
3 years ago
7

As an elected official, you have been informed that real GDP is below its potential and that action should be taken to encourage

economic growth and bring the economy to its long-run equilibrium. The marginal propensity to consume is 0.6, and the amount of new government spending is $700 billion.
What is the multiplier?
Business
1 answer:
telo118 [61]3 years ago
8 0

Answer:

The answer is 2.5

Explanation:

Mpc = marginal propensity to consume

Mps = marginal propensity to save

Multiplier = 1/ 1-mpc= 1/ mps

Multiplier = 1/ 1-0.6 = 1/ 0.4 = 2.5

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Which type of lending institutions are being described here?
kifflom [539]

Answer:

C:Payday lenders

3. Consumer finance companies

Explanation:

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3 years ago
Employers can try to overcome the moral-hazard problem involving their employees by:
BartSMP [9]

Answer:

Option D             

Explanation:

In simple words, moral hazard refers to the situation when an individual do not act with full responsibility due to the fact that any loss from their behavior will be borne by some third party.

Thus, by assessing the employees before employment by a test will help to decide the employer if the individual is worthy of the job or not. Thus, efficient employees will be selected and less mistakes will occur.    

5 0
3 years ago
Imagine that you are a member of the band and you want to purchase some items from a music supply store. Use what you've learned
FinnZ [79.3K]

This is a question only you and someone who is taking that course can answer. I would need more information.

7 0
3 years ago
Read 2 more answers
January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 41,000 of its common shares at $9 each. T
ICE Princess25 [194]

Answer:

174,250 shares

Explanation:

The computation of the number of shares to be used in computing diluted earnings per share is shown below:

Proceeds from exercise of options (a)  $369,000  (41,000 shares × $9)

Used to repurchased for common stock (b) 30,750 shares (41,000 shares × $9 ÷ $12)

Number of shares for exercised (c)                           41,000 shares

Less: repurchased shares (d)                                    -30,750 shares

Diluted common shares {e = c - d}                             10,250 shares

Add: Common shares (f)                                             164,000 shares

Total number of shares for diluted earning per share 174,250 shares

We ignored the market price of common stock as it is not relevant.

8 0
2 years ago
Executives of Studio Recordings, Inc., produced the latest compact disk, the Starshine Sisters Band, titled Starshine/Moonshine.
Alexxandr [17]

Answer:

a) Contribution margin= $6,4

b) break-even point:

in units=76562 cds

in dollars=$869058

c) Net profit= $5910000

d) Q=107813 cds

Explanation:

Variable costs:

CD package and disc $1.25/CD

Songwriters’ royalties $0.35/CD

Recording artists’ royalties $1.00/CD

<u>Total Variable costs= $2,6</u>

Fixed Costs:

Advertising and promotion $275,000

Studio Recordings$215,000

Total fixed costs= $490000

Price=$9

a) contribution margin= Price- variable costs= 9-2,6= $6,4

b) break-even point:

in units=fixed costs/contribution margin=490000/6,4= 76562 cds

in dollars= fixed costs/(contribution to sale ratio)

in dollars= fixed costs/(contribution margin/price)

in dollars= 490000/(6,4/9)= $869058

c) q=1000000

sales= 9000000           (1000000*9)

variable costs= -2600000      (1000000*2,6)

fixed costs= -490000

Net profit= $5910000

d)Profit= 200000  q=?

using the break-even formula

Q=(fixed cost+profit)/contribution margin

Q=690000/6.4=107813 cds

7 0
3 years ago
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