Answer:
Round 2 adds =$800
Round 3 adds =$640
Explanation:
Marginal propensity to consume is the aggregate increase in spending by a consumer for each additional $ they earn. So a Marginal Propensity to consume of 0.8 means that each consumer in the economy consumes 80% of any additional dollars they earn, while they save 20% which is also the marginal propensity to save that is 0.2
So First round adds $1000
Second round adds $1000 * 0.8 = $800 as people use 80% of $1000
Third round adds $800 * 0.8 =$640 as people use 80% of $800
while the remaining is saved.
Hope that helps.
Answer:
years to double GDP = 22.15 = 22 years
so here correct option is c. 22 years
Explanation:
given data
average growth rate = 3.16% per year
Rule of 70
to find out
how many years will the Filipino economy double in size
solution
we know that according to Rule of 70
years to double GDP is express as
years to double GDP = 
......................1
put here value of average growth rate in equation 1
years to double GDP =
years to double GDP = 
years to double GDP = 22.15 = 22 years
so here correct option is c. 22 years
Answer:
A
Explanation:
Obsolescence is the loss in value of a property.
there are different types of obsolescence
They include :
1. External obsolescence is the loss in value of a property as a result of factors external to the property. Such factors include economic, social or environmental.
Loss in value due to safety concerns qualifies as external obsolescence
2. Physical obsolescence
3. Functional obsolescence
Answer:
8.13%
Explanation:
Annual return = [ (Total FV/Initial investment)^(1/n) ] -1
n = useful life of the project
Total Future Value = (22650*5) +5000
Total FV = $118,250
Initial investment = $80,000
Annual return = [ (118,250/80,000)^(1/5) ] -1
r = [ (1.478125^(1/5)] -1
r = 1.0813 - 1
r = 0.0813 or 8.13%
