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s2008m [1.1K]
3 years ago
7

A specific reduction in government spending will dampen demand-pull inflation by a greater amount the: 
A. Smaller is the econom

y's MPC
B. Flatter is the economy's aggregate supply curve
C. Smaller is the economy's MPS
D. Less the economy's built-in stability
Business
1 answer:
lina2011 [118]3 years ago
5 0

Answer:

The correct answer is option C.

Explanation:

A reduction in spending is going to reduce the income of the consumers in the economy. The consumers do not spend all their income but save it partially. The saving is used to create funds which are invested again and lead to increase in output. The rate of consumption depends on the marginal propensity to consume and marginal propensity to save. The marginal propensity to save is 1-MPC. Smaller MPS will cause saving to be less, consequently investment will also be lower.

So, a reduction in the government spending will be more effective in curbing demand-pull inflation if the marginal propensity to consume is higher and marginal propensity to save is smaller.

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The marginal prospensity is to consume 0.75, marginal prospensity to invest is 0.3 and the marginal prospensity to import is 0.2
7nadin3 [17]

Answer:

1.33

Explanation:

The size of the multiplier is the one which grounded on the marginal decisions of the household for spend, that is called as the MPC (stands for Marginal Propensity to consume), also referred to as the marginal propensity to save (MPS).

The formula to compute the size of the multiplier is as follows:

Size of multiplier = 1 / MPS

where

MPS is 0.75

So,

Size of multiplier = 1 / 0.75

= 1.33

5 0
3 years ago
Marshall Manufacturing has recently revamped its promotional strategy. Marshall now utilizes a system that combines all the elem
nydimaria [60]

Marshall Manufacturing has adopted an integrated marketing communication system .

Option C

<u> Explanation: </u>

The main aim of an organisation is to have an effective communication channel to enhance their profit by adopting to an effective system.

For such effective system the organisation can make use of a model called Integrated marketing communication system this will organise and integrate all the promotional strategies of marketing and communicating to the end user.

This is a long process wherein the brand awareness will be created among the general customers at a low cost. This is also abbreviated as IMC which utilize numerous channels to communicate the campaign messages.

This campaign boost the efficiency of marketing activities that are used to convert strangers into prospects and prospects into customers.

7 0
3 years ago
The balance of​ stockholders' equity at the beginning of the year and the end of the year was $ 60 comma 000 and $ 67 comma 000​
Paul [167]

Answer:

Explanation:

Income/ (loss) for the year = Equity balance at the end +dividend paid- equity balance at the beginning

=$67,000+22,000-$60,000

=$29,000

Since  no additional common stock was issued during the year, $29,000 represents income earned during the year before dividend is paid. After dividend of $22,000 has been paid, the balance of $7,000 profit will be added to retained earnings .

8 0
3 years ago
As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost
OLga [1]

Answer:

"Ordering" is the correct solution.

Explanation:

  • Ordering expenses are incurred in purchasing a new shipment of manufactured goods. This would include expenditures for the attempting to place of a purchase agreement, cost savings for the evaluation including its batches expected to receive, ends up costing for documentary evidence, etc.
  • The cost of ordering correlated negatively with either the cost of transport. This appears to mean because the much more purchases a business location including its providers, the significantly higher the ordering costs will indeed be.
3 0
2 years ago
Felipe works for an insurance agency with about 50 employees. The HR director recently sent an email requesting information on w
Zinaida [17]

Answer:

C.  Most people used the reply all button

Explanation:

This is a problem that can occur in companies due to misuse of e-mail functionalities. What happened in this case was that the employees who responded to the HR director's request email, used the reply button to all contacts forwarded in the director's original email, which ends up creating an email chain unnecessary and can hinder and delay the work of other employees, who need to see emails related to their role.

Therefore, the essential thing is that each employee makes use of the e-mail tool effectively, responding only to the recipient of the e-mail and avoiding sending unnecessary and private messages to contacts not interested in the professional subject addressed in the e-mail.

7 0
3 years ago
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