<span>If the MPC is 0.70 and investment increases by $3 billion, the equilibrium GDP will increase by $10 billion.
The GDP is the Gross Domestic Product and the MPC is the marginal propensity to consume. The MPC tracks that a raise in pay will increase consumers spending on goods and services. If there is an increase in spending budget, then the GDP will increase because of more spending power.
</span>
Answer: Market Penetration Pricing.
Explanation:
MPP, Market Penetration Pricing is a where a company uses a strategy to attract customers to their product. Which also means lowing the price for customers to buy their products.
When lowing a price: This strategy is used to attract customers, they buy their product - then if they like it they will keep buying it even if the price is raised. This is a common strategy for tons of company brands.
Answer:
C) abandon the production of jam to fully specialize in the production of peanut butter and then trade with Company Q for jam.
Explanation:
According to different theories about trade specialization, a company or even a country should specialize in producing only those products that they can make better than their competition, i.e. have a comparative or absolute advantage in their production.
In this case, since Company R has a comparative advantage in the production of peanut butter, it should specialize in producing only that. In case they need jam, they should trade with Company Q in order to get some jam. Eventually Company Q will only produce jam since they have a comparative advantage in jam production.
Answer:
Journal Entry to be recorded
DR. Land $475,000
Cr. Common stock $312,500
Cr. Add-in-capital common stock $162,500
Explanation:
Number of Shares = 12,500 shares
Share Market price = $38
Share Par Value = $25
Total value of property to be recorded= 12,500 x $38 = $475,000
Common stock value at par = 12,500 x $25 = $312,500
Add-in-Capital common stock value = $475,000 - $312,500 = $162,500
Property will be recorded as the total value of exchange which is $475,000. On other other hand the common stock value will be recorded in two parts common stock at par value and add-in-capital common stock over par value.
Answer:
The answer is 5,040.
There are 5,040 different possible itineraries.
Explanation:
The number of different possible itineraries equals the number of the selection of 7 cities from a total of 7 cities where order is important.
We solve thus:
