Answer: Option (b) is correct.
Explanation:
Given that,
Marginal propensity to save (MPS) = 0.25
Investment spending (I) = $600 million
Government purchases increases by $150 million
MPC - Marginal propensity to consume
MPC + MPS = 1
MPC = 1 - 0.25
= 0.75
Government spending multiplier = 
= 
= 4
Increase in Real GDP = Government spending multiplier × Increase in government purchases
= 4 × 150
= $600 million
Inflation means- A general increase in prices and fall in the purchasing value of money.
So if you think about the question and the definition, what answer involves the money going down and or up significantly?
The answer would be,
B, Producers raise prices to meet HIGHER cost.
Hope this helps :)
Answer:
sales decline
Explanation:
everyone stopped buying DVDS because they are kind of useless at this time period, which means they couldn't make any money
Answer:
C) Debit Cash $2,750
Credit Accounts Receivable $2,750
Explanation:
When payment is received in respect of services rendered or goods sold in the past periods, the accounting rule is to debit cash or bank as the case may be and credit account receivable for the amount received. This is necessary because in period when transaction took place, revenue has been credited and account receivable debited.
