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Anettt [7]
3 years ago
13

Suppose economists observe that an increase in government spending of $14 billion raises the total demand for goods and services

by $42 billion. If these economists ignore the possibility of crowding out, they would estimate the marginal propensity to consume (MPC) to be
Business
1 answer:
Alexandra [31]3 years ago
4 0

The estimation of the marginal propensity to consume should be 2 ÷3

The computation of the estimation of the marginal propensity to consume is shown below:

But before that the multiplier should be

= Total demand for goods & services ÷ government spending

= $42 billion ÷ $14 billion

= 3

Now as we know that

Multiplier = 1 ÷ (1 - MPC)

3 = 1 ÷ (1 - MPC)

1 - MPC =  1 ÷ 3

MPC = 1 - 1 ÷3

= 2 ÷ 3

Therefore we can conclude that The estimation of the marginal propensity to consume should be 2 ÷3

Learn more about the multiplier here: brainly.com/question/490794

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A large corporation that runs nursing homes estimates that changes to Medicare will result in lower payments by Medicare to nurs
astra-53 [7]

Answer:

Should not

Explanation:

From the question, marginal cost exceeds the marginal benefit to be derived from the addition of beds.

Thus MC > MB

This means that it will cost the Corporation more to expand the number of beds than the benefits that they will derive from adding this feature. This shows that they are better off avoiding the addition of beds as this would make them to run at a loss. Hence, they should not offer additional beds.

3 0
4 years ago
Barney heads the finance team of Neon Inc. Some of his team members display very low levels of readiness. He provides specific i
sattari [20]

Answer:

The correct option is (c)

Explanation:

A leader who displays directing leader style gives particular instructions to the subordinates and clearly defines roles and tasks assigned to them. He supervises the tasks performed by the subordinates.

The leader makes all decisions and communicate the same to the subordinates so it is a one-way communication as he does not seek feedback from the them.

Here, Barney displays directing leader style as he is more task oriented and not relationship oriented. He has clearly stated the tasks and deadlines to the subordinates.

3 0
3 years ago
Someone please help me!!!
Ugo [173]

Answer:

Okay

1. Sell more

2. rise

3. Once they sell half of there stock, so they have money to make more.

Explanation:

4 0
3 years ago
b. ​rational, self-interested government officials seeking more funding for mass transit through higher taxes should consider
Marysya12 [62]

Higher taxes is very unpopular and may result in losing the future elections.

Higher tax rate means decrease in the real income of the people. This will results in rising of the inflation as higher the tax rate the more will be the cost of production.

There will be many other consequences for the implication of higher tax rates such as people will not like that government anymore because very few people if comfortable in paying more taxes.

It will increase the gap between the rich and poor.

It may be possible that in future people will not prefer this government again for charging higher tax rates.

To know more about government:

brainly.com/question/16940043

#SPJ4

6 0
2 years ago
Sharon is upset with her secretary. Though everyone in the office agreed not to give Christmas presents this year, Sharon's secr
aliya0001 [1]

Answer:

C,)The reciprocity norm

Explanation:

From the question, we are informed about Sharon who is upset with her secretary. Though everyone in the office agreed not to give Christmas presents this year, Sharon's secretary gave her an expensive bottle of perfume. In this case, the best yet that identifies the source of Sharon's feelings is reciprocity norm.

Reciprocity norm can be regarded as rule of human interaction which stressed that action of a person needs to be reciprocated by another people. In simple term, reciprocity norm explain that when a particular person is been given a gift by another, the gift must be related by the person, this gift could take different number of forms. Reciprocity can be explained better as ways and how particular positive actions generate more positive actions, in the same way that negative actions generate or give room for more negative actions

4 0
3 years ago
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