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elixir [45]
2 years ago
14

Define and explain each concept and give specific examples: a. Marginal Propensity to Consume and Marginal Propensity to Save (

____/5) b. The Multiplier Effect and Spending Multiplier ( ____/5) c. Deficit Spending and Crowding Out ( ____/5)
Business
1 answer:
siniylev [52]2 years ago
3 0

Answer:

The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent. Consumer behavior concerning saving or spending has a very significant impact on the economy as a whole.

Multiplier Effect

for every dollar the government spends, it will create a greater than one dollar change in GDP

Spending Multiplier

1 / 1-MPC or 1 / MPS; increase in spending .: + multiplier; decrease in spending .: - multiplier

Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit.

Crowding out in businesses an economic concept that describes a situation where personal consumption of goods and services and investments by business are reduced because of increases in government spending and deficit financing sucking up available financial resources and raising interest rates.

Explanation: Marginal Propensity to Consume

the fraction of any change in disposable income that is consumed; MPC = change in C / change in DI

Marginal Propensity to Save

the fraction of any change in disposable income that is saved; MPS = change is S / change in DI

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Answer:

c. full employment

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So the answer is c. full employment

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2 years ago
For the following statement, move the endpoints of the demand curve to create the demand relationship that is described. "I spen
Akimi4 [234]

Answer:

Explanation:

"I spend more on orange juice even as the price rises".

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Does this mean that I must be violating the law of demand?

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Therefore if "I spend more on orange juice even as the price rises", then obviously the law of demand is being violated

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List and explain the four factors of production, stating their reward. ​
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<h3>What is meant by organization?</h3>

An organization is a collection of individuals who cooperate, such as a firm, neighborhood association, charity, or union. Any individual, group of people, business, or activity that is being developed or created can all be referred to as an "organization."

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The opposite is also true: being organized may improve your health and make you happier and more at ease .Being unorganized might cause chaos in your life. It could lead to despondency and increased stress. Disorganization may be a fire risk, as well as a source of mold growth and dust accumulation.

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