1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
TiliK225 [7]
3 years ago
15

Suppose the government increases education spending by $20 billion. If the marginal propensity to consume is 0.85, how much will

total spending increase?
Business
2 answers:
jasenka [17]3 years ago
8 0

Answer:The answer is $134billion

Explanation:

Initial increase in spending = $20billion

Marginal propensity to consume = 0.85

To calculate increase in spending, we use the formula for multiplier

K = 1 / 1 - MPC

K = 1 / 1 - 0.85

K = 1/ 0.15

K = 6.66

K = 6.7 approximately

To calculate how much the spending increase

We use the formula

K = change in national income / change in government spending

6.7 = change in national income / $20 billion

We cross multiply

Change in national income = 6.7 × $20billion

Change in national income = 134billion

Therefore the total spending increase by $134billion

Softa [21]3 years ago
7 0

The  explanation will be  provided here briefly in an attachment:

Download docx
You might be interested in
Compared with free​ trade, large countries may increase national welfare when they place a tariff on imports. What unique aspect
Crazy boy [7]

Answer:

The correct answer is: reduce the world price of import when they levy a tariff.

Explanation:

Import tariffs make foreign goods more expensive, encouraging the purchase of domestic goods. Governments also justify applying tariffs to protect national jobs, infant industries, to retaliate against a trading partner, or to protect their consumers.

On the other hand, a less common tariff is the export tariff. That is, the one that is imposed on a good or service sold abroad in your country. They are generally imposed by countries that export primary products, either to increase incomes or to create shortages in world markets and thus raise world prices.

The imposition of tariffs is known as tariff barriers. In addition, there are non-tariff barriers to promote the protection of national industries. It consists of putting technical, legal obstacles, quotas or other measures that discourage importation.

4 0
3 years ago
For the person to whom this utility function applies, a. her level of satisfaction will be enhanced equally by an increase in we
Solnce55 [7]

Answer:

b. the more wealth she has, the less utility she gets from an additional dollar of wealth.

Explanation:

Utility is the satisfaction derived from a good. Total Utility is the total satisfaction from all units of a good. Marginal Utility is the additional satisfaction from an additional unit of a good.

The Law of Diminishing Marginal Utility states that : As consumer gets more & more of a good, the additional utility (satisfaction) from each successive unit keeps on declining. It implies that marginal utility decreases, & total utility increases at a decreasing rate.

Therefore : A person has more marginal utility (additional satisfaction) from an additional dollar, if he has less money (dollars). And, relatively less marginal utility from an additional dollar if he has more money (dollars).

Example : A rich person having millions of dollars would get less marginal utility (additional satisfaction) from gaining a single dollar, than a poor person having few dollars.  

6 0
2 years ago
Net credit sales for the year are $750,000. The end of year accounts receivable balance is $160,000. The allowance for doubtful
alexandr402 [8]

Answer: $3000

Explanation: Allowance for doubtful accounts is the contra account to accounts receiveable when all the bad debts need to be accounted for. The bad debts reduces the accounts receivable line but all bad debts are actually deducted from the allowance for doubtful accounts.

The allowance for doubtful accounts for that year is calculated as 5% of the accounts receivable balance. This amounts to $8000 (160000 x 5%) before bad debts have been accounted for. Allowance for doubtful accounts moves in the opposite direction as accounts receivable because it is a contra account to this line item. At the end of the year before year end closing entries are done, and after the bad debts have been accounted for, the balance on the allowance for doubtful accounts is $5000.

This means that bad debts for that year is:

8000 (balance before bad debts have been accounted for)

- 5000 (balance after bad debts have been accounted for)

= $3000.

5 0
3 years ago
You are the primary system administrator for a large Active Directory domain. Recently, you have hired another system administra
KengaRu [80]

Answer:

D) Use the Delegation of Control Wizard to assign the necessary permissions on the OU that the new employee is to administer.

Explanation:

As for the information provided, we know that when some work is to be delegated then, care has to be taken, that the work when delegated, will require delegation of responsibilities and the right to have access to some authorities to do such work.

Here the new administrator needs to have the authority to access the specific OU.  And now, the administrator needs to delegate such rights for new password. Also, the administrator shall not access to passwords of other OU.

Accordingly for this, the company shall delegate with control wizard.

5 0
3 years ago
Fred owns a small manufacturing plant. His friend Paul also owns a manufacturing plant and has talked to Fred about issues he ha
lara [203]

Answer: The correct answer is "a. You may have to tell your accountant to conduct reconciliations to ensure that the rates in the system make sense when compared to actual rates.".

Explanation: Paul should surely recommend that your accountant verify the rates applied in the accounting system have reliability and are correctly related to the actual rates and if not, perform the necessary reconciliations.

4 0
3 years ago
Other questions:
  • When JCPenney markets its Sandra Salcedo line of clothing to Hispanic women in Texas and Northern California, but not to other a
    14·1 answer
  • Cable tv operators and cellular carriers suffer from high levels of​ ________, or customer defections.
    7·2 answers
  • Explain id there is excess supply or demand of goods at the equilibrium price and why? In sentences
    15·1 answer
  • From the ledger balances below, prepare a trial balance for Cullumber Company at June 30, 2017. All account balances are normal.
    8·1 answer
  • Natalie is thinking of buying a van that will be used only for business. The cost of the van is estimated at $36,500. Natalie wo
    12·1 answer
  • The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in produ
    10·2 answers
  • A person appointed by the president to represent the united states in a foreign country is _____.
    14·2 answers
  • g Perfection purchased a 25% stake in Satisfactory for $486,000 on Jan 2, 2021. On Jan 1, 2021, Satisfactory had a book value of
    10·1 answer
  • Entrepreneurial development is the key to achieve all-round
    6·1 answer
  • If your liquid assets equal $15,000 and your total current debts equal $50,000, your liquidity ratio is:
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!