Answer:
(B) $20 billion
Explanation:
Given a certain level of MPC, an increase in government spending (G) by a certain amount translates to an increase in aggregate demand (AD) through the relationship below.
![ΔAD = \frac{ΔG}{1 - MPC}](https://tex.z-dn.net/?f=%CE%94AD%20%3D%20%5Cfrac%7B%CE%94G%7D%7B1%20-%20MPC%7D)
where Δ means <em>change.</em>
<em />
Therefore, given ΔAD of $50 billion, and MPC of 0.6,
![ΔAD = \frac{ΔG}{1 - MPC}](https://tex.z-dn.net/?f=%CE%94AD%20%3D%20%5Cfrac%7B%CE%94G%7D%7B1%20-%20MPC%7D)
= ![50 = \frac{ΔG}{1 - 0.6}](https://tex.z-dn.net/?f=50%20%3D%20%5Cfrac%7B%CE%94G%7D%7B1%20-%200.6%7D)
= ![50 = \frac{ΔG}{0.4}](https://tex.z-dn.net/?f=50%20%3D%20%5Cfrac%7B%CE%94G%7D%7B0.4%7D)
= ΔG = 50 * 0.4 = 20
Therefore, increase in government purchases = $20 billion.
Answer:
The answer is "4200"
Explanation:
Please find the complete question in the attached file:
Calculating the variable cost in km:
![= \frac{(105,000 \times 0.114 - 70,000 \times 0.134)}{(35,000)} \\\\ = \frac{(11,970 - 9,380)}{(35,000)} \\\\ = \frac{2,590}{(35,000)} \\\\ =0.074](https://tex.z-dn.net/?f=%3D%20%5Cfrac%7B%28105%2C000%20%5Ctimes%200.114%20-%2070%2C000%20%5Ctimes%200.134%29%7D%7B%2835%2C000%29%7D%20%5C%5C%5C%5C%20%3D%20%5Cfrac%7B%2811%2C970%20-%209%2C380%29%7D%7B%2835%2C000%29%7D%20%5C%5C%5C%5C%20%3D%20%5Cfrac%7B2%2C590%7D%7B%2835%2C000%29%7D%20%5C%5C%5C%5C%20%3D0.074)
Calculating the fixed cost:
![= (105,000 \times 0.114) - (105,000 \times 0.074) \\\\ = (11,970) - (7,770) \\\\=4,200](https://tex.z-dn.net/?f=%3D%20%28105%2C000%20%5Ctimes%200.114%29%20-%20%28105%2C000%20%5Ctimes%200.074%29%20%5C%5C%5C%5C%20%3D%20%2811%2C970%29%20-%20%287%2C770%29%20%5C%5C%5C%5C%3D4%2C200)
Answer: The correct answer is "D. They earn identical rewards per unit of systematic risk.".
Explanation: If you are comparing 3 values and by calculating, find that they all have the same Treynor ratio means that they earn identical rewards per unit of systematic risk.
The lower-priced caskets are positioned in the higher mark-on quartile in accordance with price progression. Caskets that cost less will be marked up more.
<h3>What is Pricing Method?</h3>
The pricing method are the ways in which the cost of goods and services can be determined after taking into account all the variables influencing the pricing strategy as a whole, including the product or service, the competition, the target market, the product's life cycle, the firm's expansion plans, etc.
A pricing strategy is a plan or technique for choosing the most competitive price for a good or service. It assists you in setting prices while taking customer and market demand into account in order to maximize profits and shareholder value.
With this price strategy, as the consumer's investment rises, so does the value to them as opposed to value progressive pricing. An approach to pricing in which the cost of the casket and the markup are inversely related.
To learn more about pricing strategy, refer to;
brainly.com/question/20927491
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