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luda_lava [24]
4 years ago
13

By how much will GDP change if firms decrease their investment by $-8 billion and the MPC is 0.9? If the MPC is 0.8?

Business
1 answer:
Inessa05 [86]4 years ago
8 0
GDP stands for gross domestic product.

MPC stands for marginal propensity to consume (the ratio of the ratio of change in consumption to change in income)

From MPC you obtain the GDP Multiplier, which gives the relationship between a change in a particular expenditure and the GDP.

This is: Change in GDP = Mutliplier * Change in expenditure

The multiplier is equal to 1 / [ 1 - MPC].

Now use that information to calculations.

<span>Change in GDP with MPC of 0.9

multiplier = 1 / [1 - 0.9 ] = 1 / 0.1 = 10
Change in GDP = 8 billions*10 = 80 billions.


Change in GDP with MPC of 0.8 </span>

multiplier = 1 / [1 - 0.8] = 1 /0.2 = 5
Change in GDP = 8 billions*5 = 40 billions
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Answer:

$22,640

The explanation is shown below:-

Explanation:

The computation of cash flow from operating activities using the direct method is shown below:-

                               Direct method

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                          Statement of cash inflow

Cash flow from operating expenses

Cash received from customers       $143,777

($143,951 - $174)

Cash Paid

To suppliers                                      ($53,773)

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To salaries and wages                     ($56,855)

For office expenses                         ($7,730)

($7,785 + $668 - $723)

For income tax expenses               ($2,779)

($50 + $2,729)

Net cash inflow from operating

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4 years ago
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Answer and Explanation:

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Answer:

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The headquarters not the organisation is in London. While it has branches in Latin America, Asia Pacific, Africa, and the Middle East.

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