Answer: $200
Explanation:
From the information given, since the MPC is 0.75 and the change in GDP is $800, the change in the government spending will then be:
$800 = 1/(1 - 0.75) × ∆G
$800 = 1/0.25 × ∆G
$800 = 4 × ∆G
∆G = $800/4
∆G = $200
The government spending will be increased by $200
Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>
<u>Explanation:</u>
In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.
This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.
Once the bill submitted by company is approved, then the retention amount will be automatically debited.
Answer:
d) steer the economy away from recession and toward growth best describe what central bank uses money policy to do
Explanation:
A key role of the central banks is to conduct monetary policy so as to achieve price stability (low and stable inflation) and to aid manage economic fluctuations.
In an open economy, national saving equals to domestic investment and net capital outflow
Explanation:
In an open economy national saving as considered or calculated an equal to the domestic investment and net capital outflow.
The savings saved by the households are generally deposited in the the banks accounts and banks use this amount to give loans to the business organisation and they make money from these loans.
Apart from this, countries also invests in the other foreign countries which is also considered as domestic (national) saving.
