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Trava [24]
2 years ago
11

Leakages and injections Suppose the economy is initially in equilibrium, when a decrease in decreases total leakages out of the

economy. Which of the following will occur as a result of this change? Suppose the economy is initially in equilibrium, when a decrease in decreases total leakages out of the economy. Which of the following will occur as a result of this change? Check all that apply. GDP rises above planned spending. Firms experience an increase in unplanned inventory. There is a proportionate decrease in investment. Real GDP falls. Injections and leakages are equal to each other .
Business
1 answer:
leonid [27]2 years ago
3 0

Answer:

<em>Suppose the economy is initially in equilibrium, when a decrease in</em><em> </em><u><em>Savings </em></u><em>decreases total leakages out of the economy. </em>

Savings are considered leakages in the economy because the represent money that is not spent but rather saved.

<em>Which of the following will occur as a result of this change?</em>

<em>GDP rises above planned spending.</em>

Savings reduces spending but as savings have reduced, there will be more spending which is unplanned and so this increase in unplanned spending will make GDP higher than planned spending.

Injections and leakages are equal to each other <u>when real GDP is equal to aggregate expenditure. </u>

Injections and leakages are equal when the output (GDP) and the Aggregate expenditure are the same.

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7 0
2 years ago
Only variable costs can be differential costs. Do you agree? Explain.
Nostrana [21]

I do not agree with the given statement that is "Only variable costs can be differential costs.".

The difference in the costs of two alternative decisions is referred to as differential cost.

When a company is faced with several similar options, it must make a decision by selecting one and discarding the other.

Variable costs in cost accounting are costs that vary according to how much a company produces.

Variable costs are typically proportional to output.

As a result, the cost difference between two alternatives, rather than the fixed and variable nature of costs, is relevant for decision-making.

Hence, I disagree with the statement given in the question.

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5 0
1 year ago
Suppose you've just inherited $66,000 from your rich Aunt. You're trying to decide whether to keep the $66,000 in cash so that y
Flauer [41]

Answer:

Opportunity cost of holding the money = $1.650

Explanation:

Opportunity cost is the value of the next best alternative sacrificed in favour of a decision.

The opportunity cost of holding the money is the interest on deposit that would be have been earned should it be invested at the savings rate.

Interest on savings deposit = interest rate × deposit

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3 0
3 years ago
What is the price paid for the use of borrowed money referred to as?
marshall27 [118]
Interest
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3 0
2 years ago
Boswell company manufactures two products, regular and supreme. boswell's overhead costs consist of machining, $3,000,000; and a
yawa3891 [41]
Total overhead costs
3000000+1500000=4500000

Total direct labor hours
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Predetermined oH rate
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Overhead applied to regular
180×10000 h =1800000...answer


4 0
2 years ago
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