Answer: a. 10%
b. -30%
Explanation:
a. What is the percentage change in the price of milk?
Old price = $5.00
New price = $5.50
Percentage change = ($5.50 - $5.00)/$5.00 × 100
= 0.50/5.00 × 100
= 1/10 × 100
= 10%
Percentage change on price = 10%
b. What is the percentage change in the quantity demanded for Boo Berry Cereal?
Old quantity = 1000
New quantity = 700
Percentage change = (700 - 1000)/1000 × 100
= -300/1000 × 100
= -30%
The percentage change in the quantity demanded for Boo Berry Cereal is -30%.
Answer:
A. True
Explanation:
The central bank (reserve bank, monetary authority) is the institution responsible for the monetary policy of a country or group of countries. The main purpose of the central bank is to maintain the stability of the currency and the money supply. However, central banks also have duties such as being the last credit authority of the banking sector and controlling the interest rate. In addition, the central bank may have powers, such as supervising banks and other financial institutions, against negligence and fraud. Central banks play the role of banks for private banks and the government of the country. Process checks and lend to members. Central banks keep their foreign currency in foreign currency reserves. These resources are used to fluctuate exchange rates. Usually they add dollars or euros in order to match their currencies. This is said to be strong and helps exporters keep their prices competitive. Central banks also regulate exchange rates as a way of controlling inflation. They buy and sell large quantities of foreign currency for supply and demand.
No it’s still a 50/50 chance the product will even do good once it’s on the shelf because of its competitors
In economics, when finance people talk about MPC, they refer to the Marginal Propensity to Consume. This is simply the ratio of the change in consumption to the change in income. Qualitatively, this measures the ability of a person to save his earnings by minimizing his expenditures.
The equation for MPC is ΔConsumption/ΔIncome. Therefore, MPC is the slope of a graph whose x-axis is income and consumption as its y-axis.
MPC = ($42,500 - $35,000)/($50,000-$40,000)
MPC = 3/4 or 0.75
On the next section, there is no clear answer how an increased spending affects the GDP. Technically, it is the budget deficit that could tell the effect. But still, it would depend on the type of spending and its effect on the long run. Generally, when the government has great spending on projects that would create opportunities for job openings and investments, then the GDP would increase. But if it not, then it would create a large budget deficit. It will be experienced long term through high inflation rates to catch up with the debt.