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True [87]
3 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]3 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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money that is provided by the defendant to ensure his or her appearance in court is reffered to as----------------.
faust18 [17]

Answer:

Bail

Explanation:

Bail is just a measure of cash that is saved with the court to guarantee that you appear for all court procedures. You can post your bail in real money with the court, and you will at that point be discharged from authority.  

In the event that the litigant needs more money to post the whole bail, the court will acknowledge a bail security.  

The reason for bail is to guarantee that a respondent returns for future court appearances.

8 0
3 years ago
An investor in able inc. would like to understand able's availability of resources to pay its short-term cash requirements. this
Free_Kalibri [48]

To know whether Ability Inc. has the resources available to meet its short-term cash needs, a potential investor in the company would be interested. A liquidity analysis is one of these types of analyses.

The term "liquidity" describes the effectiveness or simplicity with which a security or asset can be converted into immediate cash without impacting its market price. Cash itself is the most movable asset.

In other words, liquidity refers to how easily an item may be purchased or sold on the market at a price that reflects its true worth. Due to its ease and speed of conversion into other assets, cash is regarded as the asset with the highest level of liquidity. Real estate, fine art, and collectibles are a few examples of tangible assets that have a low liquidity level. Various points on the liquidity spectrum are occupied by other financial assets, which range from shares to partnership units.

Learn more about liquidity here

brainly.com/question/13781625

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4 0
2 years ago
Suppose the fed sells $50 million of government securities to the bank of america. complete the sentences. the fed's total asset
abruzzese [7]

Suppose the fed sells $50 million of government securities to the bank of America. complete the sentences. the fed's total assets increase by​ $50 million and its total liabilities do not​ change.

<h3></h3><h3>What are liabilities?</h3>
  • A liability is defined in financial accounting as the future forfeitures of economic benefits that an entity must make to other entities as a result of previous transactions or other previous events, the resolution of which may result in the transfer or use of assets, the provision of services, or another future yielding of economic benefits.
  • Financial accounting liabilities might be based on equitable duties or constructive obligations rather than having to be legally enforceable.
  • A responsibility based on moral or ethical principles is referred to as an equitable obligation.
  • Contrary to an obligation that is founded on a contract, a constructive duty is one that is suggested by a particular combination of circumstances.

To learn more about the liability, refer to the following link:

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7 0
2 years ago
Hedging transactions in an active future market have zero.<br> A. True<br> B. False
Evgen [1.6K]

Answer:

A. True

Explanation:

Hedging transactions can be described as derivative that are purchased in order to reduce investment risk of investments by using options, futures or forward contracts as insurance.

A futures market refers to a central financial exchange where standardized futures contracts are bought and sole as defined by the exchange.

Generally, positive net present value (NPV) is yielded by hedging. But the NPV will be zero or even slightly negative as when the market becomes active about the future.

Based on this explanation, the correct option is <u>A. True</u>. That is, hedging transactions in an active future market have zero.

7 0
3 years ago
Azure Company uses the multiplier method to estimate hidden quality costs. The multiplier is determined to be 3, based on experi
damaskus [11]

Answer:

d. $990,000

Explanation:

The multiplier method assumes that the total external failure cost is a multiple of the measured external failure costs. In this case, based on experience, the company determined that the measured value must be multiplied by a factor of 3:

C=3* \$330,000\\C= \$990,000

Therefore, Azure Company's total external failure cost is $990,000

3 0
3 years ago
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