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mash [69]
3 years ago
9

Suppose that technological advancements stimulate $20 billion in additional investment spending. If the MPC = 0.6, how much will

the change in investment increase aggregate demand? Multiple Choice $33.3 billion $20 billion $12 billion $50 billion
Business
1 answer:
Leya [2.2K]3 years ago
7 0

Answer:

$50 billion

Explanation:

The net effect on aggregate demand of the additional investment spending will be derived by multiplying the increased spending by the Multiplier.

Multiplier = \frac{1}{1-MPC} = \frac{1}{MPS}

Where MPC is the marginal propensity to consumer, and

MPS, the marginal propensity to save.

Therefore the multiplier = \frac{1}{1-0.6} =\frac{1}{0.4} = 2.5

Accordingly, the increase in aggregate demand as a result of the increase in the investment

= 2.5 * $20 billion

= $50 billion

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PtichkaEL [24]

Answer:

<u>b. False</u>

<u>Explanation:</u>

<em>Remember, </em>the term social responsibility in this context refers to an individual doing what would benefit society first, over any gain he may derive if he does otherwise.

For example, we are told that there is "low paying wages in Belize," which means low worker welfare, thus, even if no labor laws were been broken in his country, Olivia has a social responsibility to pay fair prices for the necklaces and earrings.

5 0
3 years ago
Some industrial products are created to meet the needs of one or a small group of customers. Boeing, for example, serves a very
fgiga [73]

Answer:

a custom-designed product.

Explanation:

In this case, an airplane is a highly customized product. Each airplane is specifically built and arranged to meet the special and unique needs of its clients. For example, each airplane is painted with the colors and the logo of the airline company. The seats are also arranged depending on the specific requirements of the clients.

3 0
3 years ago
Which of the following is least likely to be considered a substantive procedure relating to payroll?a. Investigate fluctuations
siniylev [52]

Answer: <em>Option (D) is correct.</em>

From the given options, the following is least feasible to be taken in consideration as a substantive practice relating to payroll: <em>Test whether employee time reports are approved by supervisors.</em>

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5 0
3 years ago
Producer S brokered slightly more than $40,000 in insurance premiums last year. Based on this premium amount, what is the penalt
maw [93]

Answer:

Producer S brokered slightly more than $40,000 in insurance premium last year,  the penalty amount of the surety bond S is required to maintain in favor of the people of Illinois is $2,500.

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A producer that brokered more than $40,000 in insurance premium in a given year is required to pay a penalty amount of the surety bond of $2,500 in favor of the people of Illinois.

6 0
4 years ago
You are to receive an annuity of $1,000 per year for 10 years. You will receive the first payment two years from today. At a dis
Neporo4naja [7]

Answer:

present value of annuity is $61445.66

Explanation:

given data

annuity P = $1,000 per year

time t  = 10 year

rate r = 10% = 0.01

to find out

present value of annuity

solution

we will apply here present value formula that is

present value = P ( 1 - ( 1 + r )^-t ) / r  ..........................1

put here all value for r, t  and P in equation 1

present value = P ( 1 - ( 1 + r )^-t ) / r

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present value = 61445.66

so present value of annuity is $61445.66

8 0
3 years ago
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