The main difference of the two is the kind of employers who can offer the saving plans. For 403(b) saving plans, this applies to nonprofit companies, schools, government organizations, hospitals and religious groups. They are exempt of some administrative processes making it less costly compared to 401(k) savings plan. 401(k) savings plan is applied on private companies.
Answer: See explanation
Explanation:
The increase in income for Spendia will be:
= 1 / (1 - MPC)
where MPC = 0.8
= 1 / (1 - 0.8)
= 1 / 0.2
= 5
Increase in income = Gross investment × multiplier
= $100 × 5
= $500 million
The increase in income for Savia will be:
= 1 / (1 - MPC)
where MPC = 0.5
= 1 / (1 - 0.5)
= 1 / 0.5
= 2
Increase in income = Gross investment × multiplier
= $100 × 2
= $200 million
Answer: increase
Explanation:
You have a portfolio that consists of equal amounts of IBM stock and Treasury bills. If you replace one-third of Treasury bills with more IBM stock , the expected portfolio return will increase, ceteris paribus
The expected return for a particular investment are the returns which a an investor expects when he or she invests in a particular investment. In the above scenario, there'll be an increase in the expected portfolio return.
Answer:
A <u>increase</u> in the money supply will cause interest rates to decrease, which, in turn, causes spending to <u>increase.</u>
Answer and Explanation:
If demand is greater than supply, then there is inflation. Hence, the government has to devaluate its currency on net borrowings from abroad. Supply increases and price becomes stable.
The banks have to lower their bank rate and decrease CRR. When prices rise, consumption decreases and investment increases. When the interest rate is made high consumption and investment both become stable. Hence, there is full employment. Government has a fiscal policy to increase taxes and borrowings and increase the export and income rises and price becomes stable.
