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nlexa [21]
3 years ago
10

Why does a​ $1 increase in government purchases lead to more than a​ $1 increase in income and​ spending? A. Through the governm

ent purchases​ multiplier, the​ $1 increase in government spending will lead to a decrease in aggregate demand and national​ income, which will lead to an increase in induced spending. B. Through the government purchases​ multiplier, the​ $1 increase in government spending will lead to a decrease in aggregate demand and national​ income, which will lead to a decrease in induced spending. C. Through the government purchases​ multiplier, the​ $1 increase in government spending will lead to an increase in aggregate demand and national​ income, which will lead to a decrease in induced spending. D. Through the government purchases​ multiplier, the​ $1 increase in government spending will lead to an increase in aggregate demand and national​ income, which will lead to an increase in induced spending.
Business
1 answer:
MArishka [77]3 years ago
8 0

Answer:

D. Through the government purchases​ multiplier, the​ $1 increase in government spending will lead to an increase in aggregate demand and national​ income, which will lead to an increase in induced spending.

Explanation:

We know,

Multiplier = Changing real equilibrium GDP ÷Change of government spending.

If we increase the multiplier, government spending will lead to an increase in aggregate demand that is potential GDP is higher than actual GDP and national​ income, which will lead to an increase in induced spending. Therefore option D is the correct answer as options A, B, and C do not meet the requirements.

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<h3>What is ergonomics?</h3>

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7 0
2 years ago
The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it
Natalka [10]

Answer:

$13,000

Explanation:

Calculation for what The ending balance of the Work in Process Inventory account for the Fabricating Department is:

Beginning Balance 10,000

Add Direct Materials 76,000

Add Direct Labor 24,000

Add Factory Overheads 12,000

(50% *24,000)

Less Work Transferred (109,000)

Ending Balance $13,000

Therefore The ending balance of the Work in Process Inventory account for the Fabricating Department is:$13,000

6 0
3 years ago
The difference in average annual income in favor of employees who have college degrees, compared with those who do not have such
Kay [80]

Answer yee:

Explanation:

6 0
3 years ago
Martha Manufacturing produces a single product that sells for $80. Variable costs per unit equal $32. The company expects total
garri49 [273]
Each unit sells: $80
Each unit costs to make: $32
Fixed costs: 72,000
Goal: 2,000 units sold

If they meet their goal, let's see how that would go:

(2,000 * 80) - (2,000 * 32) - 72,000 = ?
160,000 - 64,000 - 72,000 = 24,000

24,000 is the profit they would make for hitting their goal.

Question 1:
What is the break-even point? The break-even means they make no money, but they also lose no money. So that final number (24,000) would be 0 instead. How many units would they have to make to hit zero?
(x * 80) - (x * 32) - 72,000 = 0.
80x - 32x = 72,000
48x = 72,000
x = 1500 units

We can verify by using our first formula we've already determined, using this new value for units.
(1,500* 80) - (1,500 * 32) - 72,000 = ?
120,000 - 48,000 - 72,000 = 0? True!

Question 2: If they increase their expenses by 16,000, what is their new break even point?

(x * 80) - (x * 32) - 72,000 - 16000 = 0.
80x - 32x - 88000 = 0
48x = 88000
x = 1833

Question 3: 10% reduction in selling price and 10% increase in sales. (Assuming based off the original formula the problem provided.)

Original: (2,000 * 80) - (2,000 * 32) - 72,000 = ?

10% Reduction in price: 8
80-8 = 72

10% increase in sales: 200
2000 + 200 = 2200

Plugin to our formula:
(2200 * 72) - (2200 * 32) - 72,000 = ?
158400 - 70400 - 72,000 = 16,000

Since this number is positive, this is income. (D)
7 0
4 years ago
A customer has a fully paid options position and is long marginable stock. Subsequently he receives a margin call on his long st
Feliz [49]

Answer: II and III

Explanation:

From the question, we are informed that a customer has a fully paid options position and is long marginable stock and that subsequently he receives a margin call on his long stock position.

The statements that are true are that the customer cannot borrow against the long options contracts to satisfy the margin call and the long option contracts have a loan value of 0%.

Therefore, option C is the right answer.

8 0
3 years ago
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