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swat32
3 years ago
5

Imagine a world where there are only two countries. In country A, the people spend 80% of their marginal income. In country B, t

he people spend 60% of their marginal income. In which country would fiscal policy be more effective and why
Business
1 answer:
Pavlova-9 [17]3 years ago
7 0

Based on the percentage spent out of their marginal income, the country where fiscal policy would be more effective is<u> Country A </u>

The country where fiscal policy would be more effective is the one that has a higher multiplier.

Multiplier is calculated as:

<em>= 1 / ( 1 - Marginal propensity to consume)</em>

Marginal propensity to consume is the percentage spent out of marginal income.

Country A multiplier:

= 1 / ( 1 - 80%)

= 5

Country B multiplier:

= 1 / ( 1 - 60%)

= 2.5

In conclusion, fiscal policies would be more effective in Country A.

<em>Find out more at brainly.com/question/17012705. </em>

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Douglas Industries produced 5,500 units of product that required 2.5 standard hours per unit. The standard fixed overhead cost p
taurus [48]

Answer:

$550 favorable

Explanation:

Douglas industries was involved in the manufacturing of 5,500 units of a product which required 2.5 standard hours per unit.

The standard fixed overhead cost per unit is $2.20 for each hour at 13,500 hours

Therefore, the fixed factory overhead volume variance can be calculated as follows

= (13,500-(5,500×2.5hours)×$2.20

= (13,500-13,750)×$2.20

= -250 × $2.20

= -$550

= $550 favorable

Hence the fixed factory overhead volume variance is $550 favorable

3 0
4 years ago
Do you think being charitable can be taught?
lesya692 [45]

Answer:

Yes, I feel like anyone can be taught what charitable means and what it is. Its all about helping..and anyone could learn that without being taught

Explanation:

5 0
3 years ago
g you are considering buying a stock that will pay a dividend of 2.3 next year the dividend is expected to grow at 5.6 per year
KIM [24]

Answer:

the  price of the stock today is $46

Explanation:

The computation of the price of the stock today is shown below;

= Expected dividend ÷ (required rate of return - growth rate)

= $2.3 ÷ (10.6% - 5.6%)

= $2.3 ÷ 0.05

= $46

hence, the  price of the stock today is $46

We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0
3 years ago
Which category of GDP does each of the following items count in? Enter one of the following letters to correspond to consumption
elena-14-01-66 [18.8K]

Explanation:

-Nissan produces a car at its Tennessee plant in December, but does not intend to sell it until after the end of the year __DNC__ .

<em> This transaction does not count because GDP is measured in one year. Nissan sell will be accounted in the next year GDP. </em>

-An auto parts maker buys an idle textile plant in North Carolina with the intent of converting it to a distribution center_I__.

<em>This is private investment of the auto parts maker. </em>

-The U.S. Army rents a warehouse to store surplus equipment __G__.

<em>This is a expense of the U.S government. </em>

-A state employees' pension fund in California buys $10 million in corporate bonds__G__.

<em>This is a expense of the U.S government. </em>

-A local bakery buys 500 pounds of flour to make bread __I__.

<em>This is private investment of the bakery. </em>

-A doctor buys a painting to hang in his office waiting area from an artist on Etsy __I__

<em>This is private investment because if his office looks better maybe this will attract more clients. </em>

-A family rents a beach house for a week's vacation __C__.

<em>This is household’s consumption. </em>

-A retiree in Chicago receives a Social Security check from the U.S. Treasury__G___  

<em>This is an expense of the U.S government</em>.

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<em>This fits in the net exports account as an export.  </em>

7 0
3 years ago
The expected return on Natter Corporation's stock is 14%. The stock's dividend is expected to grow at a constant rate of 8%, and
AlladinOne [14]

Answer: The stock price is expected to be $57 a share one year from now.

Explanation:

The stock price is expected to be $57 a share one year from now.

Expected return = 14%

current share price= $50

expected share price in a year from now = $50 x (1 + 0.14)

expected share price in a year from now = 57

5 0
3 years ago
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