Answer:
Explanation:
Effect of crowding out:
The crowding out phenomena describes the economic phenomena in which an increase in government public spending leads to reduced or perhaps may eliminate of private investment.
Multiplier:
The multiplier represents the ratio of income to investment change.
Given that:
$13 billion increase in government spending will lead to a $52 billion
The rise in demand for goods & service will be the value of multiplier which is
= 52/13
= 4
To determine the multiplier using the formula:
Multiplier = 1 /( 1- MPC)
4 = 1/(1 - MPC)
4 (1 - MPC) = 1
(1- MPC) = 1/4
-MPC = 0.25 - 1
MPC = 0.75
Marginal propensity to consume = 0.75
Answer:
D. Manufacturer to wholesaler to consumer
Explanation:
I had the same quiz question and I chose that one. May not be correct though
Answer:
18.29%
Explanation:
Return on Equity is the net profit available for equity/ Total equity value.
Total equity = Total assets - Total debt
= $90 million - $55 million = $35 million
Earnings for equity = Annual sales 
net profit margin 4%
= $160 million 4% = 6.4 million
Therefore, return on equity = 
= 
Therefore, ROE = 18.29%
