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Amiraneli [1.4K]
4 years ago
10

During a recession, the government spends $100 million to stimulate the economy. If the marginal propensity to consume is 0.8, w

hat will be the potential increase in income in the economy as a result of the government increase in the spending level
Business
1 answer:
erastovalidia [21]4 years ago
7 0

Answer:

Potential increase in income = $500 million

Explanation:

<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount.  </em>

<em>The real GDP will change in greater proportion or magnitude as a result of a unit change in any of the component aggregate expenditure. This is called the multiplier effect</em>

The expenditure multiplier is calculated as follows: 1/(1-MPC).

MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5

Using the with an date from the question in government spending by $million, the resulting change in GDP would be  

Change in GDP = change in autonomous expenditure × Multiplier

= 100 × 5 = $500 million

Potential increase in income = $500 million

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A credit card company wants your business. If you accept their offer and use their​ card, they will deposit 11​% of your monetar
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3 years ago
Mortagae brokers are the ones who bring the home buyers and the lenders together.<br> True / False.
Alborosie

<u>Answer:</u>

True

<u>Explanation:</u>

A mortgage broker helps a borrower connect with lenders who represent the best fit in terms of the borrower's financial situation and interest-rate needs. A mortgage broker, a mortgage broker determines a loan-to-value ratio, and gathers all the required information regarding borrowers ideal loan type and forward them to the ideal lenders. The loan-to-value ratio is defined as a lending risk assessment ratio that financial institutions and other lenders examine before approving a mortgage. They also track down the unnecessary fees tacked onto closing costs by lenders when issuing a mortgage, this is called garbage fees. There are also a type of loan called the liar loan, these involve the category of mortgages that refers to low-documentation or no-documentation mortgages, this can be acronym to "no job, no income and no assets" type of borrowers.

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4 years ago
Four ways by which your choice of reading material can affect your writing
Liula [17]
What you read directly affects how you write. If you don’t have time to read, you won’t have the tools to write either. Readers understand how reading affects writing positively. Readers understand thoughts and learn how to structure those thoughts into a sentence. Readers also understand words and the connection they make with thoughts. Writing often comes naturally to avid readers because they understand the connection between thoughts and words.

How Reading Affects Writing
These are just some of the ways reading can help make you a better writer.
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Readers are accustomed to structuring sentences. They have seen good sentence structure so many times that it starts to come naturally to them. A lot of this also depends on the quality of material you are reading. Readers are also used to seeing writers use different styles of writing. They learn to play around with different writing styles and use them according to the mood of the piece being written.

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Good grammar automatically makes sense to avid readers. They understand how different figures of speech fit together. They understand punctuation and how one comma or apostrophe can change the whole meaning of the sentence. Grammar can be improved through reading which then shows through in your writing too.
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Frequent readers are able to understand the thoughts of the writer. They are able to transport themselves and visualize what the author is saying through his words. Being able to understand thoughts is a great asset while writing. It helps you become the author you want to be.
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Good readers have seen so much diverse content that they know how to make writing interesting. They understand the level of creativity required as a writer to be able to transport your audience to the scene you are describing. Such creative and powerful writing can only be made possible with the aid of great vocabulary.
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7 0
3 years ago
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<em>Answer:</em>

<em>d. delegation.     </em>

<em>Explanation:</em>

<em>Delegation: </em><em>In management, delegation is described as any of the assignment related to an authority figure that is being given to another individual, for example, a task or assignment given by a manager to his or her subordinate to lead a few specific activities. Delegation is determined as one of the different concepts related to "management leadership". Therefore, an individual who is being delegated a specific work tends to remains "accountable" for the output of the "delegated work".</em>

<em>As per the question, Alex probably never learned to use the tool of delegation.</em>

4 0
3 years ago
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