Answer:
$200 (million)
Explanation:
If the government spending increases by $200 million, then associated change in equilibrium income will be $ 200 million, assuming that Marginal Propensity to Consume (MPC) is 1
Answer:
Demographic Environment
Explanation:
When looking at the macroenvironmet and the likely changes happening in there, one seems to look at the broader condition of the economy which can be impacted by the monetary and fiscal policies, as well as employment and inflation rates.
The demographic environment is part of the six forces of the microenvironment and should be considered first amongst the three items listed. With this, a company can be able to identify the exact target markets needed for their respective products or services
.
Answer:
The correct option is D,cannot be determined from the data provided
Explanation:
Break-even points in units=fixed costs/contribution margin per unit
Contribution margin per unit =selling price -variable cost
In other words, from the scenario, it is clear that the numerator fixed costs has increased and also a reduction in variable cost per unit implies an increase in contribution margin per unit since a lesser variable cost is being deducted from selling price.
The impact of both increases in fixed costs and contribution margin cannot be determined except if more details is provided which will give further guidance regarding which of the two increased at a higher rate compared to the other.
Answer:
The correct answer is option C.
Explanation:
An increase in the interest makes it more expensive to borrow money. In other words, the cost of borrowing increases. This will cause investment expenditure on machinery, equipment, and factories to decline.
Increased interest rate also increases the opportunity cost of holding money. The consumers will get more return from saving. This will reduce, the consumer spending on durable goods.
The increased interest rate will attract foreign capital inflows. The increase in demand for currency will increase its value. This will reduce exports and increase imports. As a result, net exports will decline.
