Explain the value of applying the recency/fre- quency/monetary assessment to an organization's cus- tomer database Is it possibl
1 answer:
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Answer:
$50 billion
Explanation:
The net effect on aggregate demand of the additional investment spending will be derived by multiplying the increased spending by the Multiplier.
Where MPC is the marginal propensity to consumer, and
MPS, the marginal propensity to save.
Therefore the multiplier = = 2.5
Accordingly, the increase in aggregate demand as a result of the increase in the investment
= 2.5 * $20 billion
= $50 billion
<u>Answer:</u> The rate of interest is 7.18 %
<u>Explanation:</u>
To calculate the rate of interest, we use the equation used for the interest compounded monthly follows:
A = Amount after time period 'T' = $100,000
P = Principal amount = $50,000
R = rate of interest = ?
n = Number of times interest applied per time period = 1 (annually)
T = time period = 10 years
Putting values in above equation, we get:
Calculating the rate of interest in percentage:
Hence, the rate of interest is 7.18 %