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Rina8888 [55]
2 years ago
6

In a closed economy with only lump-sum taxation, if the marginal propensity to consume is equal to 0. 75, a $70 billion increase

in government spending could cause a maximum increase in output of.
Business
1 answer:
Ber [7]2 years ago
7 0

The maximum increase in output would be $280 billion.

<h3>What is the maximum increase in output?</h3>

The MPC is known as the marginal propensity to consume. It is the fraction of income that is spent on consumption. The other fraction of income is expected to be saved.

The maximum increase in output = increase in government spending / ( 1 - MPC)

$70 / 0.25 = $280 billion

To learn more about marginal propensity to consume, please check: brainly.com/question/10710567

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The method <span>of evaluating a capital investment project that use cash flows as a measurement basis are: </span><span>Payback period, internal rate of return, and net present value.
- PAyback period, used to determine how much asset is back after the initial saving
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3 years ago
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The truth about office friendships is:

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Clique is a small group of people who share common interests and usually spend time together and do not readily allow others to join them.

Workplace cliques can cause horizontal disharmony because they are purposefully alienating others. People within a clique uses said clique to be their comfort zone. Thus, they do not extend effort to meet and cultivate new friendships nor exert effort to do better at work. Sometimes, they tend to pass up promotions or better benefits so that they will stay within their cliques and not deal with insecurities or feel vulnerable in facing situations that they are not comfortable with.
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3 years ago
Jiminez, Inc., had the following transactions during the month of March 2015. Prepare an income statement based on this informat
vladimir1956 [14]

Answer:

net income     4,385

Explanation:

The income statment will only include revenues and expenses account.

A revenue will be the gain realized from the business main activity or secondary like interst or rental revenues.

While expenses will be the cash erogation or losses iincurred in the business activities, their financing like interest expenses and other.

revenues       9,850

expenses     <u>  5,465   </u>

net income     4,385

The loan is not an expense. It wil lbe the interest it generated but we aren't given with that information

The dividends also aren't an expense they represent the return to the investors.

5 0
3 years ago
based on the diminishing returns to specialization, it is more realistic to assume that the units of resources required to produ
MatroZZZ [7]

Answer:

decrease.

Explanation:

Diminishing returns to specialization is when resources can freely used to produce any good. Units of resources required to produce one additional unit will decrease. The rate of output will increase with same resources.

8 0
3 years ago
Use the price of apples and oranges to calculate a price index called the Apple and Oranges Price Index (AOPI). Apples cost $0.5
Olegator [25]

Answer:

2009 AOPI is 125

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The question is to determine the Apples and Oranges Price Index (AOPI)  for 2009 with 2002 as the base year

First step:  For the base year 2002, the goods were bundled as 10 apples and 5 oranges

Therefore, we calculate the cost of these two in 2002 as follows

= 10 apples x $0.5 + 5 oranges x $1 = $10

Second step: For the 2009, the goods were 5 apples and 10 oranges however, since we are using 2002 as the base year, we will calculate the cost of this same 10 aples and 5 oranges using the 2009 value.

= 10 apples x $1 + 5 oranges x $0.25

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Step 3: Based on these calculations with 2002 as the base year

The consumer price index = (12.5/10)  x 100

The AOPI (Apple and Oranges Price Index) for 2009 assuming that of 2002 is 100 will be 125

6 0
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