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nika2105 [10]
3 years ago
9

The government builds a new recycling plant. The manager of the company hires workers and pays them an annual salary. These work

ers then increase their spending. The firms that sell the goods these workers buy also increase their output. This type of effect on spending illustrates the
multiplier effect
Business
2 answers:
dedylja [7]3 years ago
7 0

Answer:

government spending multiplier effect

Explanation:

In economics, the government spending multiplier effect refers to the increase in household income resulting from an increase in government spending. In macroeconomics, it is calculated by dividing 1 by marginal propensity to save (MPS).

In this case, the government spending was carried out locally, but the effects will benefit households and businesses from the local community and beyond. This effect happens because when the government spends money, the contractor will distribute part of it to its employees and vendors, and keeps the rest as profits that will later be distributed to the stockholders. Those vendors and employees purchase goods and services from other businesses, and the cycle goes on.

OLEGan [10]3 years ago
3 0

Answer:

Multiplier effect

Explanation:

Multiplier effect refers to the increases in the final income as a result of new injections in spending. It indicates changes in spending that causes changes in real gross domestic product more than the initial change in spending. The scenario presented in the question illustrates multiplier effect. It involves increase in the level of demand in the circular flow of income that stimulates buying and selling.

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Capital brought into a business in exchange for a percent of ownership in the business is called
neonofarm [45]

Answer:

D: Equity financing

Explanation:

Equity is ownership in the business - equity financing means giving up ownership in order to secure financing.

3 0
3 years ago
A Golf company detemined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 60,000 units on ha
iogann1982 [59]

Answer:

Budgeted cost of goods sold = $7,650,000

Explanation:

Computation table for budgeted cost of goods sold

<u>Particular                                          Amount </u>

Total Sales                                 225,000

Add: Desired stock in hand         90,000

<u>Less:</u><u> Beginning stock             60,000   </u>

<u>Budgeted production                 255,000 </u>

Budgeted cost of goods sold = 255,000 x $30

Budgeted cost of goods sold = $7,650,000

6 0
2 years ago
From an economist's point of view, costs: Consist only of explicit costs. May or may not involve monetary outlays. Never reflect
Mademuasel [1]

Answer:

A

Explanation:

5 0
3 years ago
CAN SOMEONE PLEASE HELP ME????
Vikentia [17]

Answer:

1.D

2.D

Hope this helps

7 0
3 years ago
T-mobile would like to increase spending to acquire customers. Jessica, the head of marketing department, knows that 20% of cust
Softa [21]

Answer:

C. $1000

Explanation:

Given that;

20% of customers leave company every year

Jessica  decide to acquire customers whose CLV equals or exceeds $5000

If Karly is expected to bring $2000 annual margin

assuming  that the company's discount rate is 20% /year =0.2/ year

The objective is to determine the amount the company will  spend to acquire her (i,e Karly) as a new customer.

The amount the company will spend to acquire her as a new customer is :

= amount of CLV  × discount rate

= $5000 × 0.2

= $1000

Thus, the company should not spend more than  <u> $1000  </u>  to acquire her as a new customer

8 0
3 years ago
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