Answer: 0.8; 5
Explanation:
From the question, we are informed that people decide to save 20 percent of their incomes. We should note that the addition of the marginal prospensity to consume(MPC) and the marginal prospensity to save(MPS) will be equal to 1.
Therefore, the value of the marginal propensity to consume will be:
= 1 - 20%
= 1 - 0.2
= 0.8
The value of the spending multiplier will be calculated as:
= 1/MPS
= 1/0.2
= 5
Answer:
B. Taking a friend to lunch in return of a favor
Explanation:
Barter System is direct commodity/ service to commodity/service exchange , without using money as an intermediary exchange medium . It is also called C to C exchange .
Eg : Two farmers exchanging their wheat & rice , A teacher teaching grocers' child in exchange of groceries from him .
So : A. Simple Investment , C. Money Purchase , D. Money Denomination exchange - neither are examples of Barter System .
B . Paying off a friend's favour in exchange of a service (being service-service exchange) is a relatable example.
Answer:
1. using plans as a standard for measuring performance.
Explanation:
Strategic planning is an important process that enables a business or an organization to have a sense of direction, goal orientation, and also enables them to evaluate and measure progress.
It is important when carrying out the strategic planning process to first focus on clarifying and developing the vision, mission and objectives of the business before moving on to strategy formulation, this helps to give a sense of direction.
In the process of strategic planning, involving key employees cannot be overemphasized. Giving key employees the chance to be involved in the planning process will enable them to connect to the business and set them up for success.
Apart from the fact that strategic planning provides a sense of direction, it also enables a business to outline goals that can be measured, hence providing a standard for measuring performance.
Like toys r us it failed because they always had low costs and low profits from their toys.
Answer: b) Loss of $7,500,000.
Explanation:
The total the investment bank paid when underwriting was:
= 10.50 * 10,000,000 shares
= $105,000,000
The total they then sell to the public is:
= 9.75 * 10,000,000
= $97,500,000
The profit is:
= Selling revenue from public - Buying cost from company
= 97,500,000 - 105,000,000
= -$7,500,000
