1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vesnalui [34]
3 years ago
14

Consider two nations, Spendia and Savia. The MPC for Spendia is 0.8, and the MPC for Savia is 0.5. Assume that both nations expe

rience an increase in gross investment (I) of $100 million at their existing GDP levels. Instructions: In part a, enter your answers for changes in income as a whole number and multiplier answers to 2 decimal places. In part b, round your answers to 2 decimal places. a. Considering the multiplier effect, what will be the overall increase in income (Y) for each nation
Business
1 answer:
ruslelena [56]3 years ago
6 0

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

You might be interested in
Bruceco is planning on selling backpacks for $100 each. the company can buy the backpacks for $30.00 and have them customized fo
umka21 [38]

100-30=70

70-20= 50

1000/50= 20 backpacks

4 0
3 years ago
Which step is most important for a project to close
Alona [7]
The most important to close project is clean up
4 0
2 years ago
Lucas Laboratories' last dividend was $1.50. Its current equilibrium stock price is $15.75, and its expected growth rate is a co
Elis [28]

Answer:

Expected dividend yield = 10.0%

Expected capital gains yield =  5.0%

Explanation:

D0 = $1.50 (Given)

E(D1) = D0 * (1 + g) = $1.50 * (1.05) = $1.575

E(P0) = $15.75 (Given)

E(P1) = $15.75 * (1.05)1 = $16.5375

Expected dividend yield = E(D1) / E(P0)

= $1.575 / $15.75 = 0.100 = 10.0%

Expected capital gains yield = (E(P1) - E(P0)) / E(P0)

($16.5375 - $15.75) / $15.75 = 0.050 = 5.0%

4 0
2 years ago
What is down payment with regarding to buying a house?
mart [117]
The down payment is an initial payment made when something is bought on credit. It usually depends on the type of house or any other form of object
5 0
2 years ago
Lee is the product manager for a software program sold by Company ABC. In evaluating the product, Lee determines that something
dezoksy [38]

Answer:

Explanation: The marketing mix consists of a number of factors that a producer usually exploits in order to influence consumers to purchase his/her products and services.

The marketing mix consists of:

- Product

- Price

- Place

- Promotion.

The above are usually called the 4Ps of marketing.

Of the four factors of the marketing mix, the factor that will the easiest for Lee to change will be the price.

This is because, often times, the price of a product or service will be the major determinant in the success of said commodity, and this is due to the fact that customers will compare the product being offered with its price in order to judge whether the product is worthy of the value placed on it.

Therefore, in order for Lee to influence the potential customers to make purchases, the price of the software program will be the easiest to be reviewed, and it should be set to a level where potential customers will be influenced to exchange their money for the software program.

8 0
3 years ago
Other questions:
  • The EPA is responsible for setting and enforcing regulation related to
    11·1 answer
  • A long-time expert in your field who will guide and advise you in your start-up phase is called a/an
    6·2 answers
  • Goodard Inc. planned to use $156 of material per unit but actually used $147 of material per​ unit, and planned to make 1,140 un
    9·1 answer
  • he following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale w
    11·1 answer
  • Which type of demand for money causes the demand for money curve to slope downward? question 2 options: 1) speculative demand. 2
    8·1 answer
  • Suppose the demand for macaroni is inelastic, the supply of macaroni is elastic, the demand for cigarettes is inelastic, and the
    8·1 answer
  • This is economics question
    9·1 answer
  • assume that in the short run a firm is producing 800 units of output, has average total costs of $150, and has cost of $100. the
    13·1 answer
  • What skills do you think an aircraft engineer would need to have?
    12·2 answers
  • In the car insurance case study, text mining was used to identify auto features that caused injuries. Group of answer choices Tr
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!