When the government decides to increase its spending by $3 billion, Over time, the real GDP increased by $12 billion. The expenditure multiplier is 4.0. Hence, Option C is correct.
<h3>What is the expenditure multiplier?</h3>
With the help of the expenditure multiplier, one can see the impact of the changes that have occurred in autonomous spending. This will be calculated on the total spending and aggregate demand in the economy.
An illustration for better understanding is here:
Expenditure multiplier = Change in real GDP / Change in spending
Expenditure multiplier = 12 / 3
Expenditure multiplier = 4
Thus, the expenditure multiplier is equal to 4.0. Option C is correct.
Learn more about expenditure multiplier from here:
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Marketing Manager Joe Driscoll stated that the
company believes that all brands and product categories can be reinvigorated,
actively using cross promotions during the latter stages of cross
promotion. Cross promotion is a marketing techniques, in these two companies come for joint promotion of its products
or service.
Marketing manager Joe
Driscoll stated that the company believes that all brands and product categories
cab be reinvigorated actively using cross promotions during the latter stages
of product decline.
In a product life cycle,
product goes with different stages like introduction, growth, maturity and decline.
Product or brand having same life cycle, brand or product can be energized by
using cross promote on marketing technique.
<span> </span>
1 - D
2 - A
3 - B
4 - C
You’re welcome.
Answer:
Rate of return= 11.25%
Explanation:
<em>The accounting rate of return is the average annual income expressed as a percentage of the average investment. </em>
<em>The simple rate of return can be calculated using the two formula below: </em>
<em>Accounting rate of return </em>
= Annual operating income/Average investment × 100
Average investment = (Initial cost + scrap value)/2
Average annual income = Total income over investment period / Number of years
Average investment = (60,000 + 20,000)/2= $40,000
Average annual income is already given as = 4,500
Rate of return = 4500/40,0000 × 100 = 50%
Rate of return= 11.25%
