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True [87]
2 years ago
5

According to the Bureau of Economic​ Analysis, during the recession of 2007minus​2009, household saving as a fraction of disposa

ble personal income increased from a low of just over 1 percent in the first quarter of 2008 to 5 percent in the second quarter of 2009. All else​ equal, a higher saving rate would A. decrease MPC​, increase MPS​, and decrease the multiplier so that changes in planned investment will have a smaller impact on equilibrium output. B. increase MPC​, decrease MPS​, and decrease the multiplier so that changes in planned investment will have a smaller impact on equilibrium output. C. increase MPC​, decrease MPS​, and increase the multiplier so that changes in planned investment will have a larger impact on equilibrium output. D. decrease MPC​, increase MPS​, and increase the multiplier so that changes in planned investment will have a larger impact on equilibrium output.
Business
1 answer:
luda_lava [24]2 years ago
6 0

Answer:

A) decrease MPC​, increase MPS​, and decrease the multiplier so that changes in planned investment will have a smaller impact on equilibrium output.

Explanation:

When you receive money, e.g. get paid by your employer, the first thing you do is pay for your basic necessities which are classified as autonomous spending. Then hopefully you will have some money left which is classified as disposable income. You can do two things with your disposable income, either spend it or save it.

The proportion that you spend is called the marginal propensity to consume (MPC) and the remaining part that you save is called the marginal propensity to save (MPS). If the MPS was 1% in 2007 and increased to 5% in 2009, then the MPC was 0.99 in 2007 and 0.95 in 2009.

The formula to calculate the economic multiplier is 1 / MPS:

  • the economic multiplier in 2007 = 1 / 1% = 100
  • the economic multiplier in 2009 = 1 / 5% = 20
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3 years ago
Mariota Corp. just paid a dividend of $4.30 per share on its stock. The dividend growth rate is expected to be 3.2 forever and i
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The term economies of scale refers to the fact that as the:
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Answer:

quantity of product produced in a given period increases, the cost of manufacturing each unit decreases

Explanation:

Economies of scale happens when the average total cost (variable + fixed production costs per unit) decreases as total output increases. This generally takes place because fixed costs are the same for a small number of units produced or a large number of units produced, so the average fixed cost per unit tend to decrease as more units are produced (at least up to certain point). Variable production costs per unit can also decrease as total output increases since materials might be purchased in larger quantities resulting in higher discounts or labor productivity increases.

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3 years ago
Company had 200 units of inventory on hand at the end of the year. These were recorded at a cost of $12 each using the last-in,
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Answer:

Debited by $400

Explanation:

Calculation for the Cost of Goods Sold

Using this formula

Cost of Goods Sold= Inventory on hand*(Cost-Current replacement cost)

Let plug in the formula

Cost of Goods Sold=200 units * ($12 - $10)

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Synovec Corporation is expected to pay the following dividends over the next four years: $6.60, $17.60, $22.60, and $4.40. After
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