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Alik [6]
3 years ago
10

Suppose that technological advancements stimulate $20 billion in additional investment spending. If the MPC = 0.6, how much will

the change in investment increase aggregate demand? Question 5 options: A) $12 billion B) $33.3 billion C) $20 billion D) $50 billion
Business
1 answer:
grin007 [14]3 years ago
5 0

Answer:

option (D) $50 billion.

Explanation:

Data provided in the question:

Additional investment spending = $20 billion

MPC = 0.6

Now,

Increase in aggregate demand = [1 ÷ (1 - mpc) ] × Investment

or

Increase in aggregate demand =  [1 ÷ (1 - 0.4) ] ×  $20 billion

or

Increase in aggregate demand = (1 ÷ 0.4) × $20 billion

or

Increase in aggregate demand = 2.5 × $20 billion

or

Increase in aggregate demand = $50 billion

Hence.

the correct answer is option (D) $50 billion.

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Employee salaries

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Production and Purchases Budgets in UnitsAt the end of business on June 30, 2017, the PE Rug Company had 150,000 square yards of
Tanzania [10]

Answer

The answer and procedures of the exercise are attached in the following archives.

Notes: All working are part of answer and provided as an ‘Equation Column’

BOLDED portion is the part of required answer

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Step-by-step explanation:

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4 0
3 years ago
Tell, Inc., leased a building from Lott Corp. Tell paid monthly rent of $500 and was also responsible for paying the building’s
Ugo [173]

Answer:

Tell and Vorn

Explanation:

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4 0
3 years ago
Changing the prices of products based on the level of demand characteristics of the customer is called ________ pricing.
Airida [17]

Changing the prices of products based on the level of demand characteristics of the customer is called dynamic pricing.

Personalization is the use of customer data to create or modify items to meet individual needs. Customization is the manual modification of an item by a customer to meet their needs and requirements. Content streaming services are perhaps the most famous example of the subscription business model.

Internet technology reduces demand information costs by enabling price transparency (making it easier for consumers to find different prices) and cost transparency (making it easier for consumers to see the true cost of a product). and improve information quality.

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6 0
1 year ago
Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $360,000
Marianna [84]

Answer:

correct option is a. $36,000

Explanation:

given data

labor cost = $360,000

move material per year = 600,000 pounds

to find out

material handling cost

solution

we find here first Labor Cost per pound of material that is express as

Labor Cost per pound of material = Labor Cost ÷ Number of Pounds of material   .......................1

Labor Cost per pound of material =  \frac{360000}{600000}

Labor Cost per pound of material = $ .6 per pound of material

=360000/600000= $0.6 per pound of material

so we can say that 60000 pounds are moved in March so cost will be

60000 pounds are move cost = 60000 × $0.6

60000 pounds are move cost = $36000

so correct option is a. $36,000

7 0
3 years ago
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