1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tresset_1 [31]
2 years ago
6

When money is spent on goods and services, those who receive the money also spend some of it. The people receiving some of the t

wice-spent money will spend some of that, and so on. Economists call this chain reaction the multiplier effect. In a hypothetical isolated community, the local government begins the process by spending D dollars. Suppose that each recipient of spent money spends 100c% and saves 100s% of the money that he or she receives. The values c and s are called the marginal propensity to consume and the marginal propensity to save and, of course, course, c + s = 1. Let Sn be the total spending that has been generated after n transactions.
Required:
Find an equation for Sn.
Mathematics
1 answer:
Bad White [126]2 years ago
5 0

Solution :

If S_n is the total spending generated after n transactions, then a_n is the spending generated during the n-th transaction. Since the government spends D dollars, then a_1 = D.

Then the second person will receive D dollars and spend D_c dollars. Therefore, a_2=D_c. The next person will receive D_c dollars, which means they are spending a_3 = (D_c)c = Dc^2 dollars. Therefore,

a_1 = D

a_2=D_c

a_3 = Dc^2

a_4 = (Dc^2)c= Dc^3

....

a_n=Dc^{n-1}

∴ S_n=a_1+a_2+a_3+....+a_n

  S_n = D+Dc+Dc^2+Dc^3+...+Dc^{n-1}

  S_n= D(1+c+c^2+...+c^{n-1})

  S-n=D . \frac{1-c^n}{1-c}

You might be interested in
If a bank account doubles in size every 5 years, then by what percent does it grow after only 3 years? Round to the nearest tent
mr Goodwill [35]

Answer:

Step-by-step explanation:

Alright, let get started.

Suppose the initial deposit in account = x

After five years, this accounts get doubled means  = 2x

Means in 5 years , the growth = 2x-x = x

So, in 1 year, the growth will be = \frac{x}{5}

So, in 3 years, the growth will be = \frac{x}{5}*3=\frac{3x}{5}

So percent grwoth will be = \frac{\frac{3x}{5}}{x}*100 = 60

Hence percentage growth is 60 %.    :  Answer

Hope it will help :)


4 0
3 years ago
Find the slope of the given points (3.4) and (7,4)
cluponka [151]

Answer:

y=0x+4

Step-by-step explanation:

7 0
2 years ago
The temperature never rose above 6 °F on Friday. Which number line could represent this situation?
Elis [28]

Answer:

b

Step-by-step explanation:

3 0
3 years ago
What solid figure has five faces and five vertices? rectangular prism cone triangular prism square pyramid
Marizza181 [45]

Answer:

Square pyramid

Step-by-step explanation:

The flat square on the bottom is 1 face and there are 4 triangle faces.

The flat square on the bottom has 4 vertices and there is the pointy 1 at the top that holds the 4 triangles.

Hope dis helps,

Have a great day.

8 0
3 years ago
Read 2 more answers
Could someone please help me with #9 thank you
Sever21 [200]

Answer:

Step-by-step explanation:

p ll s is false because s is parallel to q and q is perpendicular to p

3 0
3 years ago
Other questions:
  • How do I find what percentage 8250 is out of 9072?
    9·2 answers
  • Show me how to do this please for geometry!!
    10·1 answer
  • its SAT day ! Any final tips or formulas i should remember? Mostly for math its my weakest subject and I only need 60 more pts t
    5·1 answer
  • FIRST ONE TO GET IT RIGHT GETS BRAINLY!!!
    9·2 answers
  • Hank car travel 162 miles on 6 gallons how far hank travel if he uses 11 gallon
    6·1 answer
  • What is the slope-intercept form of the function described by this table?
    13·1 answer
  • A farmer finds that if she plants 75 trees per acre, each tree will yield 20 bushels of fruit. she estimates that for each addit
    15·1 answer
  • Which of the following disjunctions is true? 4 + 4 = 16 or 6 - 5 = 11 4 · 3 = 7 or 3 - 2 = 5 8 - 5 = 13 or 7 · 2 = 12 7 - 4 = 11
    11·1 answer
  • If 2+x=8, what is the value of x?
    15·2 answers
  • PLEASE HELP 7TH GRADE MATH
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!