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viktelen [127]
3 years ago
10

Assume that the marginal propensity to consume is 0.75, net exports decline by $10 billion, and government spending increases by

$20 billion. Given that there is no crowding out, the equilibrium gross domestic product can increase by a maximum of:_______
Business
1 answer:
kolezko [41]3 years ago
8 0

Answer: $40 billion

Explanation:

The change will be determined by the value of the Multiplier.

The Multiplier shows how much a change in government spending and exports will impart GDP.

Multiplier =  1 / ( 1 - MPC)

= 1 / ( 1 - 0.75)

= 4

Change in GDP = Multiplier * (Government spending + exports)

= 4 * (20 billion -10 billion)

= 4 * 10

= $40 billion

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On March 12, Medical Waste Services provides services on account to Grace Hospital for $9,100, terms 2/10, n/30. Grace does not
olga2289 [7]

Answer:

March 12    Medical waste expense                  9100 Dr

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March 31    Accounts Payable                            9100 Dr

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Explanation:

To record the services we received and have not paid for, we simply charge the service received as an expense and debit it and credit the Accounts Payable against it.

We use the relevant name for the service that we have created in our books. In this case, I have used the name Medical waste Expense.

The terms 2/10 n/30 means a 2% discount can be enjoyed by Grace Hospital if it pays the creditor within 10 days of receiving the service while n/30 means that the payment is to be made within the next 30 days from the day when service is received.

Grace doesn't pay for the  services in the first 10 days there by missing on the discount and the whole amount is paid on 31 march. We debit the Accounts Payable as the liability has been settled and credit the cash through which payment is made.

3 0
3 years ago
Which statements describe characteristics of pure competition? Check all that apply.
dimulka [17.4K]
The characteristics that describe pure competition are:
- Many sellers involved in the competition and none of them had the power to influence the price.
- Buyers also couldn't influence the price.
- It is fairly easy to come and compete in the market
- The commodities that offered in the market are similar in type and price.
4 0
4 years ago
Read 2 more answers
Though clearly capable, Martina does not seem very confident of herself. She is always unsure of whether she can handle assignme
Taya2010 [7]

Answer: Low self esteem.

Explanation:

Low self esteem is a low believe in oneself. An individual thinking lowly of himself, not being confident in one's ability, feeling bad about one's self.

Martina has a low believe in herself, although she has the quality to carry out a role she doesn't believe she can do it.

She is not also able to forge her path but rather wants to always be in the shadows of others.

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iragen [17]

Skeletal muscle fibers are very unusual because they may be: B. a foot or more in length, and each cell contains hundreds of nuclei.

<h3>What is a skeletal muscle?</h3>

Skeletal muscle is also referred to as voluntary muscle and it can be defined as a type of muscle that's connected with the skeleton by tendons, so as to form a mechanical system that enables the movement of the limbs and other body parts with respect to another.

Generally, skeletal muscle fibers are considered to be very unusual because they may be a foot or more in terms of length, and each cell typically contains hundreds of nuclei.

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2 years ago
The interest rate in the federal funds market:_________.
djyliett [7]

Answer:

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Explanation:

Federal funds rate is the target interest rate set by the FOMC (Federal Open Market Committee) at which commercial banks with deficit reserves borrow and banks with surplus reserves lend their excess reserves to each other overnight without collateral.  The rates are set eight times a year in line with prevailing economic situations. The rates are lowered to boost economic growth and reduce unemployment by increasing money supply.  They are increased to check inflation.

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