What will happen if government spending increases by $100 billion is:
Real output will increase by a maximum of $400 billion.
<h3>
Government spending</h3>
Using this formula
Multiplier=1/(1-MPC)
Where:
MPC=Marginal propensity to consume =0.75
Let plug in the formula
Multiplier=1/(1-0.75)
Multiplier=1/0.25
Multiplier=4
Increase in GDP= Government spending ×4
Increase in GDP=$400
Inconclusion what will happen if government spending increases by $100 billion is: Real output will increase by a maximum of $400 billion.
Learn more about government spending here:brainly.com/question/25125137
Answer:
$628.49
Explanation:
Cash flows Discount factor Future value
$100 1.1449 $114.49
$200 1.07 $214
$300 1 $300
Future value $628.49
The discount factor is as follows
= (1 + interest rate)^number of years
For $100 the year is 2
For $200 the year is 1
For $300 the year is 0
Answer:
Explanation:
The time (T) = 6 months = 6/12 years = 0.5 years
Interest rate (r) = 6% = 0.06
The stock is priced [S(0)] = $36.50
The price the stock sells at 6 months (
) = $3.20
European call (K) = $35
The price (P) is given by:
The price of a 6-month, $35.00 strike put option is $1.65
Answer:
Cost advantage.
Explanation:
In this scenario, Sweetmeats Inc., a deli, produces its own grains, such as corn, wheat, rice, and oats. The employees create different types of breads without having to buy the grains from other sources. This has helped them sell their bread items to customers at much lower prices than other neighboring delis. This scenario best illustrates a cost advantage.
Cost advantage can be defined as the factors, benefits or edge which an organization has to produce its goods and services at a cheaper rate and better quality, over its competitors or rivals in the same industry. Some of these factors include availability of raw materials, branding, skillful workforce, intellectual property, quality distribution channels, favorable location, great customer services, superior technology, etc.
Answer:
b. patents, trademarks, and franchises.
Explanation:
Intangible assets are assets that aren't physical, they cannot be seen.
Examples of intangible assets are goodwill, patents, trademarks, and franchises.
