<span>This illegal process is known as churning. By making trades over and over again, the stockbroker is receiving more commissions from all the trades, hurting the client. Churning can be thought of as continually turning over the contents of a portfolio.</span>
<span>An opportunity cost is the value or benefit that must be given up to acquire or achieve something else. In this case whatever you choose (Coke, Dr.Pepper or 7-UP) everything would be free , at zero cost. This means that the opportunity cost in this case is zero, because the drink is free.</span>
Answer:
increase the price
Explanation:
they would increase the price to reduce demand
Answer:
The correct answer is option a.
Explanation:
A budget line represents the maximum possible combination of two goods that can be purchased by an individual by spending all of his income.
George has a weekly income of $50.
He spends this income on donuts and coffee.
The price of a donut is $1 and the price of coffee is $2.50.
As George's income increase to $100, George will be able to afford more coffee and donuts as the price of coffee does not change.
So, the budget line will shift to the right, indicating the increase in the quantity of goods George can afford.
Answer:
- 1800
- 500
- Spending multiplier =5 , Tax multiplier =4
- new GDP =2000 , Increase GDP level = 11.11%
- new GDP =1800 , Increase in GDP level = 0%
Explanation:
- Equilibrium GDP = C+I+G+net export
C = private consumption
I = investment
G = government consumption
Net export = export - import
800+400+500+100 = 1800
- Saving at GDP = (GDP-T-C) +(T-G)
(1800-400-800)+(400-500) = 500
- SPENDING MULTIPLIER = 1 / 1 - MPC
= 1 / 1 - 0.8 = 5
TAX MULTIPLIER = MPC / 1 - MPC
= 0.8/1-0.8
=0.8 / 0.20 = 4
- New equilibrium GDP = GDP + 200 = 2000
Increase in GDP level = (NEW GDP - OLD GDP / OLD GDP) *100
(2000-1800) / 1800 = 11.11%
- New Equilibrium GDP = C + I+ G + Net export
(800-200) +400 +(500+200) +100 = 1800
Increase in GDP level = (NEW GDP - OLD GDP / OLD GDP) *100
There is no change in GDP.
