1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elina [12.6K]
3 years ago
6

If the marginal propensity to consume is 0.5​, then the multiplier is 2 and the ​$25 billion increase in government spending wou

ld increase aggregate demand by a total of ​$50 billion. ​(Enter your responses rounded to one decimal​ place.)
Business
1 answer:
Jobisdone [24]3 years ago
5 0

Answer:

This is correct.

Explanation:

The multiplier is what determines that how much of an injection actually impacts the economy. This means that an injection by the Government in the economy $1 usually has an increased net effect by the value of the multiplier.

Multiplier is calculated as

Multiplier = 1 / 1-Mpc, where Mpc = marginal propensity to consume

So we verify the multiplier,

Multiplier = 1 / 1 - 0.5 = 2

thus the injection of $50 Billion is brought by an initial government injection of 50/2 = $25 billion.

This thus confirms the statements.

Hope that helps.

You might be interested in
A good economic model is more likely to address a:
mars1129 [50]

Answer:

Option D is correct one.

<u>Positive statement because a good model can be tested with evidence.</u>

Explanation:

Positive statement:

It is essentially goal and reality based. Also, positive explanations are have to demonstrate or invalidated however can't right them. Positive financial aspects manages the realities and circumstances and logical results connections which incorporates portrayals, hypothesis advancement and hypothesis testing.  

Normative Statement:  

Normative explanations are abstract and the substance are esteem based. The announcements are fundamentally assessment based so they can't be tried. Regulating explanation incorporates the worth decisions with respect to that whether the economy must resemble or the suggestion of specific approach to get an ideal objective.  

Economic Model:  

Financial displaying alludes to an objective, outline layout to help systematise the investigator's view. A monetary model can't delineate reality precisely in light of the fact that it would be too hard to even think about understanding. A model is an improvement that permits the financial specialist to perceive what is genuinely significant. Since great financial model ought to anticipate circumstances and logical results relationship and it hast to be tried with checked truth, great monetary model more probable tended to positive proclamation.

8 0
3 years ago
कुनै एक शीर्षकमा १५० शब्दमा नघटाई निबन्ध लेख्नुहोस् :<br>क. मेरो देश नेपाल ​
pantera1 [17]

Answer:

What is Korean write o Japanese write I don't no longer my life now

8 0
3 years ago
Read 2 more answers
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Wewaii [24]

Answer:

C

Explanation:

Job Analysis is mainly related to the skills and qualifications of the person doing the job, so this would allow leadership to see if a position is over or understaffed.

3 0
3 years ago
Turquoise, Inc. is trying to decide whether to purchase identical inventory from one of the following suppliers: Supplier A Supp
melomori [17]

Answer:

Actual Cost of Supplier A:  $291.60

Actual Cost of Supplier B: $271.60

Explanation:

<u>Supplier A:</u>

Cost - 270

Shipping FOB shipping point

Purchase Discount = Invoice Price * Discount

For Supplier A, the invoice price is 270 and discount is 2/10 = 2%, so:

Purchase Discount = 270 * 0.02 = $5.4

Cost is:

270 + 27(shipping FOB point) - 5.4 = $291.60

<u>Supplier B:</u>

Cost - 280

Shipping Destination (so 0)

Purchase Discount = Invoice Price * Discount

For Supplier B, the invoice price is 280 and discount is 3%, so:

Purchase Discount = 280 * 0.03 = $8.4

Cost is:

280 - 8.4 = $271.60

8 0
3 years ago
What are the changes in eastern Europe introduced by Mikhail Gorbachev
Lunna [17]

Answer:Gorbachev started reforming the Soviet Union by implementing policies to bring about individual freedom, bureaucratic transparency and to stimulate economic change, most notably with the Sinatra Doctrine and Glasnost.

Explanation:

7 0
3 years ago
Other questions:
  • Max murphey, a cash basis taxpayer, borrowed $10,000 from a bank for a business loan on august 1, to be repaid one year later. t
    5·1 answer
  • Open-end mutual funds are more common than closed-end funds. question 5 options:
    10·1 answer
  • A citizen of the United States A. feels no obligation to do community service. B. gets no preparation for community service in s
    10·1 answer
  • The U.S. federal government can spend money in a variety of ways. For example, the government could build a major new naval trai
    12·2 answers
  • Match the job titles with the career clusters
    12·2 answers
  • How long will it take your money to triple if you receive 10% return on your money, compounded annually?
    8·1 answer
  • Suppose your company needs $13 million to build a new assembly line. Your target debt-equity ratio is .55. The flotation cost fo
    13·1 answer
  • Japan's great trading houses are called:_____________.
    15·1 answer
  • What's a prosecution witness? In simple words
    12·2 answers
  • g jimmy is an employee of Roofing, Inc., which is performing a contract for the federal government. Jimmy learns that Roofing, I
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!