Answer:
The correct answer is D. shared cost effect
Explanation:
The shared cost effect refers to the reduction in price sensitivity of a customer created through the perception that part of the purchase price is paid for by a third party of the firm itself.
The correct option is D. You withdraw cash from your bank account which is an event that directly involves the Federal Reserve.
The Fed removes limits on house loans for borrowers who have student loan debt in an effort to spur economic development.
<h3>
What events led up to the Federal Reserve law?</h3>
The frail banking system was devastated by bank runs following a particularly bad panic in 1907, which finally prompted Congress to draft the Federal Reserve Act in 1913. In the beginning, the Federal Reserve System was established to deal with these banking panics.
The Federal Reserve carries out general duties such as managing the country's monetary policy, supervising banking institutions, observing and defending consumer credit rights, preserving the stability of the financial system, and offering financial services to the federal government of the United States.
Thus, D is the right answer. You take money out of your bank account, which is a situation where the Federal Reserve is involved directly.
Learn more about Federal Reserve here:
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Answer:
8.6 billion
Explanation:
The best way to solve this exercise is to understand the theoretical relationships that exist between the concepts.
Let us start with the most important one: The marginal propensity to consume, defined as that proportion of the increase in income that the consumer allocates to the consumption of goods and services, rather than saving it. Mathematically, it is described as the change in consumption divided by the change in income.
A higher marginal propensity to consume means that there is more spending in the economy, which in turn increases the GDP. Therefore, in order to understand changes in GDP we must to apply the understand the marginal propensity to consume.
However, this concept alone does not tell us how much GDP will increase, for this we must resort to the concept of multiplier effect, which is defined as:
According to the statement the MPC = 0.65, therefore the multiplier is:
Consider the multiplier as the lever that drives economic growth. We already know the capacity of that lever (2.8571), now to know exactly how much GDP will change thanks to its actions, what we do is multiply it by the increase in aggregate expenditures (3 billion).
Therefore:
Answer:
B.
Explanation:
Unearned revenue is money received for a job that hasn't been done yet. It's money for a future service that the company will give. Obviously, it's an advantage to the Company because from a Cashflow perspective.