Answer:
The answer is option (b) $60.75
Explanation:
Solution
Given that
A certain economy, Income is =$100
Consumer spending is =$60
The value of multiplier is =4
Now we need to know when the income is $101, consumer spending, the customer spending will be what?
Now,
Multiplier (k)= 1/1-MPC (marginal propensity to consume)
4=1/1-MPC
Thus
MPC= 1-1/4
MPC=3/4
MPC=.75
So,
MPC= Change in consumption/change in income.
.75=Change in C/101-100
Change in C=.75*1
Change in C=.75
Hence
The new consumption =60+.75=60.75
Therefore, when the income is $101, the consumer spending is $60.75
Answer:
C. the price effect would become a more significant consideration for each firm that makes automobiles.
Explanation:
The situation above is highly related to the topic about "supply" and "demand." If the nations of <em>Germany</em>,<em> Japan</em> and <em>the U.S.A</em>. prohibits the international trade in automobiles, this will result to a<u> surplus of automobile goods within the country.</u> Since these automobiles were meant to be sold abroad, the prohibition will<em> lower its international demand.</em> Such increase in supply will have a significant effect on the price of the automobiles. This is the reason why each firm should have to consider the situation's effect on the price of the automobiles and related goods.
So, this explains the answer.
<span>These claims are part of the firm's strategy to achieve product </span>differentiation. When a company has developed product differentiation in the mind of a consumer, that means they stand on in their mind. The consumer can easily distinguish one company's product or service from that of a competitor. Being a "favorite" in the consumers mind keeps the consumer loyal to the brand.
The information given is differentiated into either managerial accounting or financial accounting below:
- Main characteristic of data is that it must be reliable and objective = Financial accounting.
- Not governed by legal requirements = Managerial accounting
- Primary users are external (i.e creditors, investors) = Financial accounting
- Focused on the future = Managerial accounting
- Reporting is based mainly on the company as a whole= Financial accounting
- Reports are usually prepared quarterly and annually= Financial accounting
- Information is verified by external auditors = Financial accounting
- Focused on the past = Financial accounting
<h3>What is managerial accounting?</h3>
Managerial accounting is a method of accounting that creates statements, reports, and documents that help management in making better decisions.
Financial accounting is concerned with the summary, analysis and reporting of financial transactions related to a business.
Learn more about managerial accounting on:
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