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nlexa [21]
2 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]2 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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Based on a predicted level of production and sales of 15,000 units, a company anticipates reporting operating income of $22,000
Arisa [49]

Answer:

Total variable cost= 90,000

Total fixed costs= 8,000

Total costs= $98,000

Explanation:

Giving the following information:

Production of 15,000 units:

Fixed costs= $8,000

Total variable cost= $75,000

We have no reason to believe that the fixed costs will change. If 18,000 units remain in the relevant range, the fixed costs are constant.

<u>We need to calculate the unitary variable cost:</u>

Unitary variable cost= 75,000/15,000= $5

Now, for 18,000 units:

Total variable cost= 5*18,000= 90,000

Total fixed costs= 8,000

Total costs= $98,000

5 0
3 years ago
Consider a model with an interaction between expenditures: voteA 5 b0 1 b1prtystrA 1 b2expendA 1 b3expendB 1 b4expendA#expendB 1
andrew11 [14]

Answer:

Explanation:

1. What is the partial effect of expendA on voteA?

ΔvoteAΔexpendA=β2+β4expendB→0.0382809+−6.63e−6expendB

2. Is the expected sign for b4 obvious?

Yes because the expendB alone is a negative and expendA is a positive leaving B4 to be a negative number .

4 0
3 years ago
Ken consumes two goods, Sprite and potato chips. Sprite costs $1 per can, and he consumes it to the point where the marginal uti
borishaifa [10]

Answer:

The correct option is c. $8.

Explanation:

Ken will maximize utility where the following equation holds:

MU of Sprite / Price of Sprite = MU of potato chips / Price of potato chips ................. (1)

Where;

MU of Sprite = Marginal utility of Sprite = 3

Price of Sprite = $1 per can

From the table in the question, equation (1) holds at the point where Marginal utility of potato chips is 6 since the Potato chips cost $2 per bag.

Substituting the values into equation (1), we have:

MU of Sprite / Price of Sprite = MU of potato chips / Price of potato chips => 3 / 1 = 6 / 2 = 3

Since when the marginal utility of potato chips that maximizes utility is 6, Ken consumes 4 Bags of Potato chips monthly and pays $2 per bag at this point, the amount he spends on potato chips each month can be calculated as follows:

Amount spent on potato monthly = Number of bags of Potato chips consumed monthly * Cost of potato chips per bag = 4 * $2 = $8

Therefore, the correct option is c. $8.

3 0
2 years ago
The U.S. and European countries do not need trade agreements because they have always freely traded without duties or quotas. tr
Mrrafil [7]
I think the answer is false!
4 0
3 years ago
A local jacket distributor expects to sell 9,000 black fleece jackets in a year. Assume that EOQ model assumptions are valid. Ea
torisob [31]

Answer: $4,800

Explanation:

First find the Annual holding cost:

= Average inventory * Cost of holding a unit

= 500/2 * 1 * 12 months

= $3,000

Then find the Annual ordering cost:

= Expected units to be sold/ Units ordered * Ordering cost

= 9,000/500 * 100

= $1,800

Annual Inventory cost = Annual holding cost + Annual ordering cost

= 3,000 + 1,800

= $4,800

4 0
2 years ago
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