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Orlov [11]
2 years ago
5

If the marginal propensity to consume is 0.75, and there is no investment accelerator or crowding out, a $115 billion increase i

n government expenditures would shift the aggregate demand curve right by $460 billion, but the effect would be smaller if there were an investment accelerator. $345 billion, but the effect would be smaller if there were an investment accelerator. $345 billion, but the effect would be larger if there were an investment accelerator. $460 billion, but the effect would be larger if there were an investment accelerator.
Business
1 answer:
rodikova [14]2 years ago
4 0

Answer: $460 billion, but the effect would be larger if there were an investment accelerator.

Explanation:

If the MPC = 0.75 and there is no investment accelerator or crowding out, then a $115 billion increase in the government expenditures would result in the shift in the aggregate demand curve right by:

= $115 billion ÷ (1 - 0.75)

= $115 billion ÷ 0.25

= $115 billion × 1/0.25

= $115 billion / 0.25

= $460 billion.

Therefore, there'll be a shift in the aggregate demand curve right by $460 billion, but the effect would be larger if there were an investment accelerator

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The basic difference between macroeconomics and microeconomics is: In a command economy, the __________ either makes most econom
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Question 2 options are;

- government

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Answer:

1. microeconomics concentrates on the behavior of individual consumers and firms, while macroeconomics focusses on the performance of the entire economy.

2. government.

Explanation:

1. Indeed, the government in a command economy (like China) makes most economic decisions itself or at least strongly influences how the decisions are made.

2. We note that the word 'macro' indicates large scope, while 'micro' indicates a smaller scope. And so, the difference is that microeconomics concentrates on the behavior of individual consumers and firms, while macroeconomics focusses on the performance of the entire economy.

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2 years ago
Which of the following tactics might public sector unions use to increase management's cost of disagreeing with the union positi
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Answer:

D. All the above are legal tactics that the union can use to pressure management to accept the union's position on an issue.

Explanation:

Each and everyone one of the options mentioned above are tactics adopted by the union in pressuring management to accept their position on most of the issues which they have or are arguing about.

5 0
3 years ago
The organizations likely to benefit the most from the global reach of e-commerce are those that.
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The companies likely to advantage the most from the worldwide attain of e-commerce are those who more than one choice

*have already got physical shops, a website, and in-person and online clients worldwide.

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*promote products or services that can be delivered online, inclusive of ebooks or online instructions.

*previously trusted foot site visitors into one physical save to sell their products.

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clients can vicinity orders electronically, consequently reducing luxurious long remote cellphone calls and postage prices of placing orders, even saving time on behalf of the purchaser and employer.

A business enterprise striving to achieve international attain ought to offer a code of ethics, an agency shopping policy, extra contact facts, ok product facts, and charges. The website itself has to be multi-lingual, the customer is easy to use and has the capability to secure information.

worldwide e-commerce is the system of promoting products or services online throughout geopolitical borders to customers in foreign nations. compared to local e-commerce, wherein a store most effectively sells within its united states of starting place, international eCommerce lets traders expand into non-native markets and reach new clients.

Learn more about e-commerce here:brainly.com/question/23369154

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3 0
11 months ago
Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. What is the present value of its growth oppo
Gnesinka [82]

Answer: $0.25

Explanation:

Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.

The present value of its growth opportunities (PVGO) will be:

= $50 - ($5.97/12%)

= $50 - ($5.97/0.12)

= $50 - $49.75

= $0.25

Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.

6 0
2 years ago
When a closed economy is in equilibrium, we know with certainty that
faust18 [17]

Answer:

inward shift in the supply curve.

Explanation:

= I = S + (T-G). shift in the supply curve.

4 0
2 years ago
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