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Goryan [66]
3 years ago
11

Assume the MPC is 0.8. Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shif

t the aggregate demand curve to the:__________
a. left by $180 billion.
b. left by $500 billion.
c. right by $180 billion.
d. right by $400 billion.
Business
1 answer:
Eva8 [605]3 years ago
5 0

Answer:

b. left by $500 billion.

Explanation:

Given marginal propensity to consume, MPC = 0.8

Marginal propensity to consume + Marginal  propensity to save = 1

MPC + MPS = 1

0.8 + MPS = 1

MPS = 1-0.8

MPS = 0.2

Now, the government multiplier = 1/MPS

The government multiplier = 1 / 0.2 = 5

Total fall in aggregate demand = Government multiplier × Government purchases

= 5 ×100

= $500

Since there is a fall in spending so the aggregate demand curve will shift leftwards.

Therefore, the correct option is b. left by $500 billion.

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In a loan database, there are 66 loans to clients with 17 years of business experience. Also, there are 83 loans made to clients
lisabon 2012 [21]

Answer:

7 loans were made to clients with Graduate education who also had 17 years of experience

Explanation:

We have to solve for which is the intersection between the two groups.

66 is the count for +17 years

83 is the count for Graduate

the two groups is 149 loans

Then, we have 142 loans which are not part of both groups. Therefore, the difference are the loan count which do belong to both groups:

149 total loans - 142 loans out = 7

4 0
3 years ago
Which of the following statements is normative? Group of answer choices Congress gives certain business corporations tax breaks.
fredd [130]

Answer: Congress gives too many tax breaks to corporations.

Explanation:

Normative statements are said to be statement of opinion and not fact.

Option D is therefore a normative statement because it is the opinion of the speaker that congress gives too many tax breaks because from a neutral standpoint, it cannot be said with certainty the number of tax breaks that will be considered too much.

The other options are statements of fact.

8 0
3 years ago
Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and
NemiM [27]
You would get 20 basketballs at $30 and 30 basketballs at $20.
4 0
3 years ago
Which is not a characteristic of a demand curve?
Dominik [7]

Answer: The correct answer is (A) : Positive upward slope.

Explanation: A demand curve is basically a graph like any other with the variables in potted on both the x-axis (left to right) and the y-axis (top to bottom). Understanding the definition of demand would make it easier to understand why the answer is option A and why the demand curve has a negative downward slope.

Demand can be defined as the quantity of a commodity or service that a consumer is willing and able to buy at a given price and at a particular point in time. And the law of demand states that “other factors being held constant, the higher the price of a commodity, the lower the quantity being demanded by the consumer. And the lower the price of a commodity, the higher the quantity being demanded by a consumer.”

This is simply a rational consumer behavior. So if the price of movie tickets were to go up let’s say from $10 to $15 then a consumer who previously could afford to watch 8 movies in a month (that’s $80) would be having second thoughts and so, rather than spend $120 per month on movie tickets, would be more inclined to watch less movies and stay within his/her $80 budget.

Therefore, on the demand curve, as the price of movie tickets moves positively towards the right side (on the x-axis), the quantity demanded would move negatively downwards (on the y-axis). As one variable increases the other one decreases, and vice versa. That explains why the demand curve has a negative downward slope.

8 0
3 years ago
If the amount realized at a Sheriff's sale upon a delinquent mortgage is more than the indebtedness, the excess belongs to:_____
timofeeve [1]

Answer: The mortgagor

Explanation:

If the amount realized at a Sheriff's sale upon a delinquent mortgage is more than the indebtedness, the excess belongs to the mortgagor.

It should be noted that the mortgagor is the borrower, therefore he or she is the person that is entitled to the excess received upon the sake of the asset.

4 0
4 years ago
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