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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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Pros of TPP deal in U.S

The TPP will abolish import tariffs of up to 40% for US agricultural goods and fruit and 35 percent in soybeans, all of which have a comparative advantage on the US in production. U.S. agriculture will benefit from this economic arrangement.

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Technological firms would benefit as import taxes on the export of ICT to some other TPP countries would be reduced to a point of 35%.

Cons of TPP in U.S

Industries like Ford protested that the compromise would phase out a 2.5% tariff on Japanese car imports into the United States, and a 25% tariff on light truck imports, although the arrangement would phase both tariffs over a period of 30 years. Companies like Ford opposed the proposal.

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Big drug firms are also affected because they only have for five years, rather than the 12 years before, covered emerging biotechnology drugs from generic competition.

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7 0
3 years ago
Lang Warehouses borrowed $146,960 from a bank and signed a note requiring 10 annual payments of $19,032 beginning one year from
Oksanka [162]

Answer:

The interest rate is 5%

Explanation:

Loan amortization is a method of loan repayment where a series of equal periodic installments is made by the borrower to offset the entire loan obligation. Each equal repayment covers the interest due on the loan so far and a portion of the principal amount.

At the beginning of the loan contract, the borrower is usually provided with information on the number of equal repayment installments that, if consistently paid, would offset the entire loan obligation (principal plus interest)

This is determined as follows:

repayment installment= Loan amount/Annuity factor

A special table called the Present Value of Annuity table is used to determined the annuity factor. All you need to use the table is the loan repayment period (years) " N " and the agreed interest rate " r "

So we apply this to question:

19,032= 146,960/ Annuity factor

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We can look up this same figure in the table, to ascertain the the number of years and the rate rate. The number of years is already given as 10.

So we look up for the figure 10 under the the column labeled "n" , trace it through the row vertically to locate 7.7217. The rate that gives this figure is the applicable interest rate. This rate will be located by tracing upward from the point where we found 7.7217.

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What is the corpus callosum?
Nana76 [90]

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4 0
1 year ago
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6 0
3 years ago
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BabaBlast [244]

Answer:

$9583.89

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7 0
3 years ago
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