Answer:
Correct answer is (B) consumption and investment both decrease.
Explanation:
when government spending increases and taxes increase by an equal amount there will be decrease in both consumption and investment.
Answer:
The extra return above the risk-free rate adjusted for total risk
Explanation:
The Sharpe Ratio was developed by William Sharpe, and it is used by investors to guage the return in an investment against risk.
To calculate it we find the excess return above risk free rate And divide it by the total risk.
This isolates the returns that are attributed to risk taking activity.
A risk free transaction for example is the yield on government treasury bills.
We use only returns associated with risk to get a better picture of risk adjusted return. The higher the ratio the better.
The marginal propensity to consume tells us by how much consumption expenditure changes when disposable income changes.
<h3>What is marginal propensity?</h3>
In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
<h3>What is the MPC and MPS?</h3>
Key Takeaways. The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent.
Learn more about marginal propensity here:
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The next guesses of the clerk should be less of red shells and more of white shells.
<h3><u>Decision about less of white and more red shells</u>:</h3>
Given that,
Red shell [r] costs = $0.75 each.
White shell [w] costs = $0.49 each.
Total of 8 shells = $4.70
The clerk guesses that the $4.96 for 4 red shells and 4 white shells is greater than the actual purchase.
Therefore,
The clerk should make use of less red shells, and more of white shells, because the unit costs of red shell is more than the white shell.
Learn more about equations, refer:
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Answer:
1) Mining
2) Ranching
3) Commercial Farming
Explanation:
The miners who comes mostly from California and other areas fulfilled the demand for gold and silver in the East. They also contributed in extracting other minerals i.e. copper, zinc, iron ore, lead, and quartz, which were great for the industrial use.
The sheep and cattle ranchers played an important role too i.e. that they produced wool, meat, and leather to satisfy the demands of eastern manufacturers and the consumers.
The farmers contributed by making farming commercial. They sold their crops in home town and internationally which helped the economy to improve.