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Natasha_Volkova [10]
4 years ago
9

Assume that the MPC is .80. If the Federal Reserve decreases the money supply, interest rates rise, and investment spending fall

s by $10 billion, then aggregate demand is most likely to:
A. Increase by $10 billion
B. Decrease by $10 billion
C. Increase by $50 billion
D. Decrease by $50 billion
Business
1 answer:
DIA [1.3K]4 years ago
4 0

Answer:

D) Decrease by $50 billion

Explanation:

If the marginal propensity to consume (MPC) = 0.8, that means that the marginal propensity to save (MPS) = 1 - MPC = 1 - 0.8 = 0.2

If investment spending falls by $10 billion, then aggregate demand will decrease by: $10 billion / 0.2 = $50 billion.

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Answer: Category membership

Explanation:    

 According to the given question, the given situation is basically determining the dasani's category membership as it helps in categorizing the various types of products and the services on the basis of their similar features and the characteristics.

The main purpose of the category membership is that it helps in understanding the various types of offers related to the specific brand and also the high competitive choice.

The customers basically wanted the product at lower price with high quality and they usually prefer the discount offers. Therefore, Category membership is the correct answer.  

   

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4 years ago
Cantrell company is required by law to collect and remit sales taxes to the state. if cantrell has $8,000 of cash sales that are
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Answer:

The journal entry for the cash receipt and on that the sales tax is charged is as follows:

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Cash A/c................................Dr  $8,640

      To Sales A/c.............................Cr $8,000

      To Sales Tax Payable A/c.....Cr  $ 640

Working Note:

Sales Tax Payable = Amount of cash sales × Rate of Sales Tax

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So, the total of cash received will be = Sales Amount + Amount of sales tax payable

= $8,000 + $640

= $8,640

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3 years ago
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What are some of the immediate results businesses found from using instant messaging?
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Answer:

The correct answer is a) All of these

Explanation:

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