1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BigorU [14]
3 years ago
12

Assume you save 25% of each additional dollar of income. Congress decides to increase government spending by $100. How much will

each additional dollar of government spending increase output (Y)
Business
1 answer:
Archy [21]3 years ago
3 0

Answer:

The amount by which each additional dollar of government spending increase output (Y) is 4.

Explanation:

Since you save 25% of each additional dollar of income, we therefore have:

MPS = Marginal propensity to save = 25%, or 0.25

Multiplier = 1 / MPS = 1 / 0.25 = 4

The multiplier is the amount by which each additional dollar of government spending will increase output (Y).

Therefore, the amount by which each additional dollar of government spending will increase output (Y) is 4.

Additional note:

This is not part of the requirement of the question but it is just for you to learn from.

Since we have:

Increase in government spending = $100

Therefore, we have:

Increase in output (Y) = Multiplier * Increase in government spending = 4 * $100 = $400

You might be interested in
Which standardized metric of output is used to gauge the size and market potential of an economy?
Nadusha1986 [10]

Answer:

The standardized metric of output used to gauge the size and market potential of an economy is the Gross Domestic Product.

Explanation:

The Gross Domestic Product is the value of goods and services that are

produced in a country in a certain time and it is consider an important indicator to analyze the state of a country's economy. The value of the goods and services produced is considered the size of the economy.

Also, as the GDP is an indicator of how the economy is doing, businesses tend to use it to predict if the sector will grow or not.

5 0
3 years ago
Universal Waste Disposal sold 1,350,000 shares of stock at $24.62 per share. The investment banker's commission was 5% of the va
Gre4nikov [31]
The proceeds that UWD received will be as follows:
Number of shares 1,350,000
share price $24.62
Amount realized from the shares:
1,350,000×24.62
=33,237,000

Total amount to be deducted will be:
(Commission+Accounting fees+legal fees+printing costs+selling expenses)
commission=$1,661,850
Accounting fees=$450,000
legal fees=$1,225, 000
printing cost=$275,000
selling expenses=$300,000

Total=(1,661,850+450,000+1,225,000+275,000+300,000)
=$3,911,850

The amount received will be:
33,237,000-3,911,850
=$29,325,150
4 0
3 years ago
Other things equal, which of the following would increase labor productivity the most? The increase in the stock of real capital
Sergio [31]

Answer:

The increase in the stock of real capital exceeds the increase in inputs of labor.

Explanation:

 The labor productivity refers to the amount of labor per unit of output. labor productivity increases when with the same amount of labor the output increase or the increasein labor generate an increase in output higher than proportional.

<u>From the given options:</u>

An increase in stock of real capital exceeding the increase in input of labor will translate into a higher productivity as each unit of labor has more capital to work with

4 0
3 years ago
The owner of a camera store is worried that her new employees may help themselves to items from inventory without paying for the
Contact [7]
You're describing a moral hazard
5 0
3 years ago
Read 2 more answers
manolo is released after a three-week stay at a psychiatric hospital. they need to find an apartment near their place of employm
malfutka [58]

She should not have volunteered to be in a psychiatric hospital. People who are classified as "mentally sick" frequently elicit unfavorable responses.

Employment means having a job that is paid against the work you do. Employees are employed by an employer. As in We're striving to boost our employment of women, the term "employment" can also refer to the act of hiring individuals.

A wide variety of mental health conditions—disorders that impact your emotions, thinking, and behavior—are referred to as mental sickness, sometimes known as mental health disorders. Depression, anxiety disorders, schizophrenia, eating disorders, and compulsive behaviors are a few examples of mental sickness.

To learn more about employment

brainly.com/question/17459074

#SPJ4

5 0
1 year ago
Other questions:
  • In 2018, Rachel received a $1,900 refund of state income taxes that she paid in 2017. In 2017, Rachel claimed itemized deduction
    7·1 answer
  • Karen Austin Inc. has issued three types of debt on January 1, 2020, the start of the company’s fiscal year.(a) $10 million, 10-
    7·1 answer
  • On January 1, 2018, Race Corp. acquired 80% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $
    7·1 answer
  • Soon after Jeff was hired as a company accountant, his company developed corporate programs to help improve self-confidence and
    12·1 answer
  • A milestone is a typical measuring point used when establishing cost control. Which of the following DOES NOT accurately describ
    10·1 answer
  • Spafford Services, Inc. provides services to clients. On May 1, a client prepaid Spafford Services $71,000 for 6-months services
    12·1 answer
  • Isobel consumes positive quantities of both jam and juice. The price of jam is 10 cents per unit and the price of juice is 5 cen
    10·1 answer
  • A computer manufacturer is producing a one-of-a-kind innovation called Innovel, a cloud computing software that helps navigate I
    7·1 answer
  • Profit is best described as Multiple Choice revenues plus expenses, less taxes. the funds available for business growth, after e
    9·1 answer
  • Complete the journal entries for the following financing transactions.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!