Option (b) for a response. In order to keep the expenditure multiplier from exceeding 1, output must increase while consumption must decrease.
<h3>Spending multiplier: What does it tell you?</h3>
An economic indicator of the impact that changes in government spending and investment have on a nation's Gross Domestic Product is the expenditure multiplier, often known as the fiscal multiplier.
<h3>When the multiplier is negative, what does that mean?</h3>
The negative multiplier effect happens when a spending leak or initial withdrawal from the circular flow has further impacts and a larger final decline in real GDP.
<h3>Why does multiplier exceed 1?</h3>
The rise in the national product indicates a rise in national income. Consumption demand rises as a result, and businesses produce to satisfy it. As a result, the increase in investment is greater than the increase in national income and product. There is a multiplier effect that exceeds one.
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Answer:
$8,767.50
Explanation:
Calculation for what Legion should report as bond interest expense for the six months ended
Using this formula
Bond interest expense= Carrying Value of Bond x Effective interest rate
Let plug in the formula
Bond interest expense=$146,125 x 12% yield interest x 6 months/12 months
Bond interest expense=$8,767.50
Therefore what Legion should report as bond interest expense for the six months ended is $8,767.50
Answer:
Revenue - March = $160
Explanation:
The accrual principle in accounting states that the revenues for a period should match the expenses for that particular period and any revenue or expense should be recorded in the period to which it relates to. This means that the upfront fee received by Fit Co. is a liability and should not be recorded as a revenue until it is earned. So, by providing two sessions in the month of March, Fit Co. has earned revenue for 2 sessions out of the twelve. Thus, at the end of March, Fit Co. should record a revenue of,
Revenue - march = 960 * 2/12 = $160
Answer:
1 hour working on problems, 3 hours reading
Explanation:
the question is not complete:
Bob is a hard-working college freshman. One Tuesday, he decides to work nonstop until he has answered 200 practice problems for his chemistry course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem.
Time Total Problems Answered Marginal gain
8:00 AM 0
9:00 AM 80 80
10:00 AM 140 60
11:00 AM 180 40
Noon 200 20
Since Bob's is able to answer more than 70 questions per hours only during one hour (from 8 to 9 AM), he can benefit more from reading the next 3 hours. Reading would be equivalent to answering 210 questions, while Bob was only able to answer 120 more questions in the following 3 hours.
Answer:
Diverisify
Explanation:
The best option would be to diverisify between various things. Part into a promising crypto such as Ethereum or Bitcoin. Part into some basic index funds such as the SPY (S&P500), some bigger tech companies such as Apple and finally a more risky investment into a stock or crypto which is only in the beginning of its age. If you would like protection against a crisis or similar you could buy some Put options for your stocks.
