Answer: See explanation
Explanation:
The increase in income for Spendia will be:
= 1 / (1 - MPC)
where MPC = 0.8
= 1 / (1 - 0.8)
= 1 / 0.2
= 5
Increase in income = Gross investment × multiplier
= $100 × 5
= $500 million
The increase in income for Savia will be:
= 1 / (1 - MPC)
where MPC = 0.5
= 1 / (1 - 0.5)
= 1 / 0.5
= 2
Increase in income = Gross investment × multiplier
= $100 × 2
= $200 million
Answer:
Option B. It is unrealistic
Explanation:
The reason is that the people have different likes which means we will never see 100 percent acceptance from the customers which might in the way of rejecting the offer of Gary. So the assumption that 50,000 cab drivers will purchase its product is truly optimistic which in other words is unrealistic assumption. So the option B is correct.
Option A is incorrect because the assumption is less qualitative as it doesn't relies on realistic assumption.
The cab drivers sales are relevant here but the sales assumption was unrealistic (Highly optimistic assumption) so the option C and D are incorrect.
Option E is also incorrect because the sales to cab drivers can be measure by initially directly selling 1000 cell phone to 1000 cab drivers which will give an actual idea of sales units expected, which means it is measurable.
The Answer is D. It would not affect gross income. Gross income is the total amount of income you gain before expenses are taken away.
Answer: Emotional motivations cause consumers to buy on the grounds of their thoughts, desires, or urges. Such motivations, mostly motivated by marketing and popular trends, may not even be known to consumers.
The forces that derives emotional decision could be adventure, affection, appearance and fear etc. These decisions might not be economical for the consumers from the money point of view but it generally results in mind satisfaction for the consumer.
The correct answer is option B.
The board of governors make decisions regarding changes in the discount rate.
<h3><u>
What is board of governors?</u></h3>
- The Federal Reserve System is governed by the Board of Governors, which is based in Washington, D.C.
- It is governed by seven individuals, known as "governors," who are appointed by the American president and approved in their roles by the American senate.
- In order to advance the objectives and carry out the duties assigned to the Federal Reserve by the Federal Reserve Act, the Board of Governors directs how the Federal Reserve System is run.
- The FOMC, the section of the Federal Reserve that determines monetary policy, includes all of the Board members.
- The periods of each member of the Board of Governors are staggered so that one term ends on January 31 of every even-numbered year. Each member is appointed to the position for a 14-year period.
When the Reserve Banks lend to depository institutions and others, as well as when they offer financial services to depository institutions and the federal government, the Board also offers general oversight, direction, and counseling.
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