Answer:
D. Consumption by $80 billion.
Explanation:
Marginal propensity to Save = 1 / MPS
= 1 / 0.2
= 5
= $20 billion × 5
= $100 billion
= $100 - $20
= $80 billion
Therefore, a $20 billion rise in investment spending will increase consumption by $80 billion.
In a free market system, the what, how and for whom questions in economics are determined by Market forces of demand and supply together. Hence, option B is correct.
<h3>What is
a free market system?</h3>
Taxes, quality controls, quotas, tariffs, and other centralized government economic interventions either don't exist or are very minimal in a free market, an unrestrained system of economic exchange.
In a free market, no one is forced to participate, and transactions are started voluntarily. According to economic theory, the price mechanism, competition, and forces of supply and demand are the best ways for free markets to distribute goods and capital.
Thus, option B is correct.
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The total amount of the investment spending is $2,236 billion.
<h3>What is an
investment spending?</h3>
An investment spending means the private domestic investment or capital expenditures.
The formula for Investment spending is I = GDP − C − G − NX.
Investment spending = $14,991 billion - $10,729 billion - $2,594 billion - (-$568 billion)
Investment spending = $14,991 billion - $10,729 billion - $2,594 billion + $568 billion
Investment spending = $2,236 billion.
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Answer:
B. Accounts Payable 20,000 Purchase Discounts 800 Cash 19,200
Explanation:
The journal entry is shown below:
Account payable Dr $20,000
To Purchase discount $800 ($20,000 × 4%)
To Cash $19,200
(Being the payment is recorded)
While recording this transaction we debited the account payable as it reduced the current liabilities while at the same time it also reduced the asset so we credited it and along with it the purchase account is also credited
Answer:
Influencer
Explanation:
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom's engineers have been asked to provide detailed specifications and recommendations for the equipment needed. The Raycom engineers will primarily play the <u>Influencer</u> role in the company's buying center.