Answer:
A greater saving will reduce the impact of the multiplier.
Explanation:
A multiplier generally refers to the factor that amplifies or increase the initial change of something else.
In economics, multiplier refers how change in spending or saving results into a larger change in local output and income.
Since addition of marginal propensity to consume (MPC) and marginal propensity to save (MPS) is equal to 1, the formula for calculating a multiplier can be stated as:
Multiplier = 1/(1 - MPC) or 1/MPS
From the question therefore, when MPS = 0.10, we have:
Multiplier = 1/0.10 = 10
When MPS is increases to 0.20, we have:
Multiplier = 1/0.20 = 5
Since 5 is less than 10, a greater saving will therefore reduce the impact of the multiplier.
4) Trade-off
5) it might be "Their resources are limited"
Answer: $174000
Explanation:
The firm's budgeted collections for August and the company's budgeted receivables balance on August 31 would be calculated as:
= (30% × $220,000) + (60% × $160,000) + (10% × $120,000)
= (0.3 × $220,000) + (0.6 × $160,000) + (0.1 × $120,000)
= $66000 + $96000 + $12000
= $174000
Answer:
There could be many challenges marketers can face when attempting to use differentiated marketing for different cultures and ethnicity. Each and every culture has its own norms, value, ethics, rituals and language which is different from other culture. Markets when going for the differentiated offerings then they must take care of those differences as well. For example, in Saudi Arab, you can't put female pictures on your packaging. Beef burgers can't be sold in India, which was done by McDonald's and they had to face quite strong resistance. Therefore, when marketers go for the differentiated marketing in different cultures, they must be aware of the norms and values of that culture.
