Answer:
The correct answer is option b.
Explanation:
An increase in government expenditure will have a smaller effect on the aggregate demand if the MPC is smaller. This happens because the consumers will save the major share of their income and not consume it if MPC is small.
This will not increase consumer spending as much as they should. And thus aggregate demand will increase by a small amount.
The change in aggregate demand will also be smaller if the investment is interest elastic. The government increases spending by borrowing from the loanable funds market.
This increases the demand for loanable funds. The interest rate, as a result, increases. This increase in interest rate makes borrowing costlier for private investors.
This further causes the investment expenditure to increase as much as it should. And thus aggregate demand will increase by a small amount as well.
Interest rate is the cost of borrowing money. when you borrow money from a bank, a certain amount of money is placed on it that you pay back in respect to how long it takes you to pay.
Answer:
The workers will only produce oranges.
Explanation:
'Opportunity cost' is an important concept which shows the relationship between choice and scarcity. For example: One can spend money and time on one thing at a time but loses the opportunity do perform the other things, which would be his opportunity cost. Like you take a vacation for the money you have but the opportunity cost is not having a new car.
Relative price is the price of one commodity in terms of another. In the given situation, opportunity cost of an apple is 3 oranges and relative price of apple is 3, so the workers will produce only oranges, as it will be more profitable.
Answer:
Selling insurance without a license without misappropriating premium funds is a class 4 felony.
Explanation:
The sale of insurance without a license without misappropriating funds is a class 4 felony that attracts a fine up $5,000 and 5 years imprisonment. This is in accordance with Illinois Laws Regulations.
