1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Harlamova29_29 [7]
2 years ago
8

Assume the marginal propensity to consume is 0.75. What will happen if government spending increases by $100 billion

Business
1 answer:
bazaltina [42]2 years ago
8 0

What will happen if government spending increases by $100 billion is:

Real output will increase by a maximum of $400 billion.

<h3>Government spending</h3>

Using this formula

Multiplier=1/(1-MPC)

Where:

MPC=Marginal propensity to consume =0.75

Let plug in the formula

Multiplier=1/(1-0.75)

Multiplier=1/0.25

Multiplier=4

Increase in GDP= Government spending ×4

Increase in GDP=$400

Inconclusion what will happen if government spending increases by $100 billion is: Real output will increase by a maximum of $400 billion.

Learn more about government spending here:brainly.com/question/25125137

You might be interested in
In the freyfogle company, land decreased $75,000 because of a cash sale for $75,000, the equipment account increased $20,000 as
agasfer [191]

Answer:

sorry idk

Explanation:

8 0
3 years ago
Which of the following is TRUE about owning a share of stock?
docker41 [41]

Answer:

A

Explanation:

The answer to that Question would be A

6 0
3 years ago
The organizational development (od) process has three steps: ___________, accompanied by feedback.
Helga [31]
<span>The organizational development (od) process has three steps: diagnosis, intervention, and evaluation, accompanied by feedback.

When referencing organizational development, we are referring to the watching the change and performance within organization/businesses. By watching this, organizations can approach and understand how to achieve success and what needs to be changed in order to do so. 

</span>
7 0
3 years ago
The U.S Department of Labor and the Organization for Economic Co-operation and Development have reported that the average age of
navik [9.2K]

Answer:

The answer is: FALSE

Explanation:

The US total workforce is not expected to decrease, not even because the baby boom generation may start to retire. The total labor force in the US was estimated to be 160 million people in January 2018. The total labor force has been steadily increasing since 1960 except during the great recession period between 2009 and 2011.

4 0
3 years ago
Preparing a Schedule of Cash Collections on Accounts Receivable
marysya [2.9K]

Answer:

                                Kailua and Company

                          Schedule of Cash Collections

                                                                    August           September

Cash collections from June                       $25,200                      $0

Cash collections from July                        $38,500             $19,250

Cash collections from August                    $17,220            $43,050

<u>Cash collections from September                      $0             $17,800  </u>

Total cash collections                               $80,920             $80,100

I suppose that 5% of the billings are uncollectible since 20% + 50% + 25% = 95%.

7 0
3 years ago
Other questions:
  • The ledger of Mai Company includes the following accounts with normal balances: Common Stock, $9,000; Dividends, $800; Services
    13·1 answer
  • Becky purchases one percent of Lakeside Ventures' (LV) preferred shares of stock in a private offering. Outside of the purchase,
    14·1 answer
  • Army Crew Team Case study required questions: Why does the Varsity team lose to the JV team? What should Coach P. have done diff
    10·1 answer
  • Q 7.5: a small business owner has two employees but each employee has a separate cash register drawer. this situation can be vie
    8·1 answer
  • If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, then an investor should:
    5·1 answer
  • The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are
    15·1 answer
  • A theory of international trade is that nations trade based on demand rather than cost/supply. Discuss this theory, apply it to
    14·1 answer
  • EA2.
    5·1 answer
  • As a noncommissioned employee in a company, your pay rate is most likely based on
    6·2 answers
  • Office Depot has instituted the Office Depot Advantage, a program in which a customer who spends a minimum of $200 up to $299 in
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!