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
olga2289 [7]
3 years ago
8

Suppose that investment demand increases by $300 billion in a closed and private economy (no government or foreign trade). Assum

e further that households have a marginal propensity to consume of 80 percent. Ultimately, how much will aggregate demand increase? Enter your answer in billions. For example if your answer is $600 billion then enter 600. If your answer is $1,500 then enter 1500.
Business
1 answer:
aleksandrvk [35]3 years ago
4 0

Answer:

Aggregate demand increase by $1500 billion.

Answer is 1500

Explanation:

Investment demand increases by $300 billion.

MPC = 0.80

Multiplier = 1 / (1-MPC)

Multiplier = 1 / (1-0.8)

Multiplier = 1 / 0.2

Multiplier = 5

Multiplier = Change in GDP / Change in investment

5 = Change in GDP / $300 billion

Change in GDP = 5 * $300 billion

Change in GDP = $1500 billion.

You might be interested in
If a cost's step-cost behavior follows very narrow steps, the costs may be approximated using:
Alex777 [14]

Answer:

The correct answer is (C) straight variable cost assumptions.

Explanation:

If the total cost increases with small increases in activity, it may be referred to as a step-variable cost.

6 0
2 years ago
On the first day of the fiscal year, a company issues an $949,000, 9%, five-year bond that pays semiannual interest of $42,705 (
KonstantinChe [14]

Answer:

Bond issue price                                                    $892,100

Face value                                                              $949,000

Discount on bond                                                   $56,900

Number of Interest payments (10 years x 2)          10

Discount to be amortized per payment                $5,690

Interest on bond                                                    $51,210

Date        Description                               Debit        Credit

Dec.  31 Bond interest expense             $56,900

              Discount on bonds payable                      $5,690

              Cash                                                           $51,210

              (Interest on bond paid and Premium amortized)

7 0
3 years ago
In double-entry accounting, where should you record money that is leaving your company to pay bills? A. In the debits column B.
Andre45 [30]
B. In the credits column
6 0
3 years ago
Read 2 more answers
BE16.11 (LO 4) Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2020. On May 1, Tomba issued 30,00
Butoxors [25]

Answer

1) Issued for Cash

Weighted Average number of shares at year end 330,000

b) Issued for Dividends

weighted Average number is 320,000

Explanation:

The Weighted average number  (assuming year end is 31 December)

300000 * 12/12 = 300000 full year

30000 = 30000

issued for dividends

Weighted average number

300000 * 12/12 = 300000 full year

30000 * 8/12 = 20000

total at year end 320000 shares

8 0
3 years ago
A cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that caus
blondinia [14]

Answer:

The correct answer is True.

Explanation:

This statement, a cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that causes the cost object to increase or decrease, is correct.

These terms are mostly used in activity based costing (ABC) system.

Examples of Cost Object are material procurement costs, quality control costs, materal handling costs, line set up costs e.t.c.

Example of Cost drivers are number of purchase orders, number of inspections, numbers of set-ups e.t.c.

6 0
3 years ago
Other questions:
  • Why are jellyfish so jellyish
    13·1 answer
  • Wages expense Wages payable Utilities expense Accounts payable Unearned service revenue Service revenue Equipment Intangible ass
    5·1 answer
  • A entry to a liability account decreases the account balance
    5·1 answer
  • How do macroeconomists distinguish between nominal and real values of​ variables?
    9·1 answer
  • A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What cha
    14·1 answer
  • WILL MARK BRAINLIEST
    6·1 answer
  • The following transactions occurred during July:
    9·1 answer
  • Because of its usefulness in CVP analysis, managers generally use an income statement in which format
    15·1 answer
  • Sherry is trying to increase her daily exercise. She has downloaded an application on her phone that tracks how far and how long
    8·1 answer
  • You recently started a new job working with databases. you receive training on maintaining the database from your boss, gregor.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!