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Mashcka [7]
3 years ago
6

Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services

by $30 billion. if these economists ignore the possibility of crowding out, they would estimate the marginal propensity to consume (mpc) to be
Business
1 answer:
Aleonysh [2.5K]3 years ago
8 0

Answer: 2/3

Explanation: Crowding out may described as an effect which stems from government involvement in an economic market resulting in the reduction of personal consumer goods or investments and businesses due to rising interest rates and low capital accumulation.

In the question above, if crowding out is ignored, The marginal propensity to consume(MPC) will be:

Multiplier = $30 billion ÷ $10 billion = 3

Multiplier = 1÷ (1 - MPC)

3 = 1 ÷ (1 - MPC)

3(1 - MPC) = 1

3 - 3MPC = 1

-3MPC = 1-3

-3MPC = - 2

MPC = 2/3

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7.92%

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An electronic store sells 3,000 HD TV sets every quarter of the year. Each TV set costs the store $ 270.00. The carrying cost is
Wittaler [7]

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Check the explanation

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The Economic Order Quantity (EOQ) is the amount of units that a firm or an organization is expected to include to its inventory with each order to reduce minimally the overall costs of inventory—such as order costs, holding costs, and shortage costs.

Kindly check the step by step explanation in the attached images below to get the solution to the question

7 0
3 years ago
Which one of the following is NOT an advantage of buyer's agency? The efforts that a buyer's agent exerts on behalf of the buyer
sasho [114]

"The use of a buyer's agent guarantees that the buyer will get a property for the lowest price possible" is NOT an advantage of buyer's agency.


It is true that the efforts that a buyer's agent exerts on behalf of the buyer cannot be compromised and that the buyers can freely communicate confidential information without fear that disclosing that information will weaken their negotiating position. The buyers will also have the benefit of a licensee's expertise in finding the right property, negotiating the purchase and attending to closing details.

However, using a buyer's agent won't guarantee that the buyer can get the best deal on a property; as a result, this is not one of the advantages of buyer's agency. The agent would only consider what is best for the buyer and not the cheapest.

Agents will also charge extra fees and commissions for representing their buyers. To avoid additional expenses, some buyers and sellers choose not to use an agent. In order to save more money and find a property for the lowest price, buyers should avoid using an agent and instead deal directly with the seller.

Learn what happens when there's no buyer agency agreement in place here: brainly.com/question/28066390

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4 0
1 year ago
Jill is much stronger than Jack and stares at him in a menacing way. One day she tells Jack that she is going to beat him if she
Brums [2.3K]

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C) for assault and battery, because there was both a threat and a harmful action.

Explanation:

Both assault and battery are crimes but can also result be considered torts and result in civil lawsuits:

  • Assault refers to a threat of bodily harm.
  • Battery refers to actually harming the other person.

Since both took place in this case, Jill can be charged of both crimes and Jack can also sue her for both torts.

8 0
4 years ago
Find the amount to which $550 will grow under each of the following conditions. Do not round intermediate calculations. Round yo
Cloud [144]

Answer:

(A)Fv= $864.2

(B) Fv= $1302.05

(C) Fv=  $2003.4

(D) Fv= $96817.21

Explanation:

Giving the following information:

Initial investment= $550

We will use the final value formula:

FV=Present value*(1+i)^n

(A) 9% compounded annually for 5 years.

Fv= 550*(1.09)^5=$864.2

(B) 9% compounded semiannually for 5 years.

Fv= 550*(1.09)^10= $1302.05

(C) 9% compounded quarterly for 5 years.

Fv= 550*(1.09)^15= $2003.4

(D) 9% compounded monthly for 5 years.

Fv= 550*(1.09)^60=$96817.21

6 0
3 years ago
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