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
77julia77 [94]
4 years ago
12

Assume General Motors has decided to build an assembly plant in St. Louis. The plant will employ 1,000 full-time workers at an a

nnual wage of $40,000 each. If the marginal propensity to consume in St. Louis is 2/3, what change in income will result from the operation of the plant for one year?
Business
1 answer:
garik1379 [7]4 years ago
5 0

Answer:

$80 million

Explanation:

The total income received by the plant's employees during the year will be $40 million (= 1,000 employees x $40,000 per employee). Since their propensity to consume is 2/3, they the employees will spend $26.67 million and save $13.3 million.

The money multiplier can be calculated using the formula: money multiplier = 1 / (1 - MPC) = 1 / (1 - 0.67) = 1 / 0.33 = 3

To determine the total income effect in St. Louis we have to multiply the money spent times the money multiplier = $26.67 million x 3 = $80 million

You might be interested in
A short explanation of a company's goals for the future is called what? (Select the best answer.)
soldier1979 [14.2K]

wrong its a vision statement !!!!

6 0
3 years ago
Product configuration is the stage of the consultative sales process known as:
NARA [144]
It’s known as: Product Selection Process - Identifies options, pricing, and delivery schedules
8 0
4 years ago
What is the reason most practices don't have an emergency plan?
Allushta [10]

Answer:

The correct answer is C, The staff thinks that an emergency won't happen to them.

Explanation:

Emergency plans are necessary in all practices. Staff must be fully taught of what has to be done and what would be the plan in case of emergency. But most practices don't have emergency plans. This is because of the fact that the staff thinks that an emergency won't happen to them. This is not a wise approach. Emergency planning has to be done in all practices because nobody know what happens in the next second.

4 0
3 years ago
Perit industries has $210,000 to invest. the company is trying to decide between two alternative uses of the funds. the alternat
kifflom [539]
Opportunity costs. If this is a grade school question.
7 0
3 years ago
Terminating an employee for the use of illegal drugs is an example of a(n) _____ turnover. retentive external voluntary absentee
klasskru [66]

Answer:

involuntary

Explanation:

Involuntary turnover happens when an employee is dismissed from a position and asked to leave. In that respect, employees may be expelled for several reasons, usually for deficient performance and inadequate behavior. In contrast, voluntary turnover occurs when employees quit and the company wishes to keep them.

3 0
3 years ago
Other questions:
  • gary, bill and carmella invested in a corporation in the ratio of 2:3:5, respectively. if they divide the profit of $82,000 prop
    10·1 answer
  • List a minimum of four reasons why you might be rejected for a job offer.
    5·2 answers
  • Schooner Inc. purchased equipment by signing a note payable. This transaction would be recorded as:
    13·2 answers
  • Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $116,000; All
    13·1 answer
  • A taxpayer who has purchased several lots of stock on different dates at different purchase prices and cannot identify the lot o
    10·1 answer
  • Determine the cost of merchandise sold for the transaction on October 8 using the perpetual inventory system and the LIFO method
    15·1 answer
  • Which best describes the role the applicants can fill in the company? Applicants 1 and 3 are best suited to work in network syst
    14·1 answer
  • If an insured under a variable life insurance policy does , how will the insurer respond to outstanding policy loans
    11·1 answer
  • The ability to conduct a business meeting is a critical management skill because:________
    15·1 answer
  • The long-run aggregate supply curve is represented by a vertical line at the solow growth rate because?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!