Answer:
The maximum possible change in real GDP is $25 million
Explanation:
Data provided in the question:
Increase in investment = $5 million
Marginal propensity to consume = 0.8
Now,
Spending multiplier, m = 1 ÷ [ 1 - Marginal propensity ]
or
m = 1 ÷ [ 1 - 0.8 ]
or
m = 5
Therefore,
Increase in GDP = m × Increase in investment
or
Increase in GDP = 5 × $5 million
or
Increase in GDP = $25 million
Hence,
The maximum possible change in real GDP is $25 million
Answer:
The partnership and all three partners will be liable on the contract for the antiques.
Explanation:
According to the scenario been described in the question, the option that best explain the it is the partnership and all three partners will be liable on the contract for the antiques, this is so because the three are members of the same board and they share whatever comes to their way.
The third one is most appropriate ! as it shows that the money can be stored and later we can use !
Answer: 2,080,000 shares
Explanation:
The question states that 2,080,000 shares were issued at a price of $15 per share so this will be the number of shares issued.
Shares issued are those shares that were actually sold by the company from the number of Authorized shares and quite often they will be less than the number of Authorized shares allowed.