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
An investment adviser that is a sole proprietor finds that its net worth (net capital) has fallen below the minimum requirement.
Liono4ka [1.6K]

A mutual fund position that is owned by the individual should be contributed to bring back the position of the advisory firm.

Answer: Option D

<u>Explanation:</u>

Net worth is the value of the firm of all the financial and the non financial assets which the firm owns. The outstanding liabilities of the firm are deducted from the net worth.

Mutual funds have the flexibility where they can manage the cash positions according to themselves. They can be followed by the market speculators and can be used to know the net worth in the market.

3 0
3 years ago
Bill is the owner of M.E. Inc., which produces miniature internal combustion engines that are used to operate hydraulic systems
Anna11 [10]

Answer:

ME should make the investment because it results in not only higher market share but also a $24,000 increase in profits.

Explanation:

Currently ME's marketing expenditures represent 25% of the industry's marketing expenditures and it matches his market share. Using the competitive parity approach, three additional market share points should cost $120,000 ($40,000 for each point) and should increase gross profits to a total of $1,344,000 ($144,000 increase). The difference between incremental revenue and incremental expenses = $144,000 - $120,000 = $24,000.

4 0
3 years ago
The union created when member countries of an economic and monetary union work closely with one another to arrive at common defe
nata0808 [166]

Answer:

Political union

Explanation:

Political Union is a union created when member countries of an economic and monetary union work closely with one another to arrive at common defense and foreign policies and behave as a single country.

Political union is when smaller states come together to form one state.

Forms of a political union includes:

Incorporating union

Incorporating annexation

Federal (or confederal ) union

Federative annexation

Mixed unions

I hope my answer helps you.

3 0
3 years ago
What is the fundamental rethinking of business processes to bring about dramatic improvements in​ performance?
Tju [1.3M]

d. process redesign?

5 0
2 years ago
Wants to start a fashion boutique that will sell tailor-made garments and accessories. She plans to open boutique stores in life
Akimi4 [234]

Answer:

commercial bank people will help her in that regard

5 0
3 years ago
Other questions:
  • Identity-__________ individuals lack clear direction. they are not committed to values or goals, nor are they actively trying to
    7·1 answer
  • The organizers of a local music and arts festival approach the management of Ocelot Juice Bar, a popular business near the festi
    5·1 answer
  • You are placing an order for printer paper for your office, and the supplier offers to
    15·1 answer
  • When output increases, the PPC of the economy , indicating in the economy.
    9·2 answers
  • Financial leverage: Group of answer choices is the ratio of a firm's revenues to its fixed expenses. is equal to the market valu
    15·1 answer
  • The corporate website of a company is established with an intention to: a. provide a transaction gateway for goods and services.
    14·1 answer
  • Assume that Kubin Company produced 30,750 units and expects to sell 30,390 of them. If a new customer unexpectedly emerges and e
    15·2 answers
  • The Commissioner is empowered to examine the records of any person transacting insurance in the State as an agency, an agent or
    15·1 answer
  • Suppose that an Exxon Mobil bond has a return of ​% half the time and ​% the other half. The expected return on this bond is   
    12·1 answer
  • To reduce traffic, market town enacts an ordinance that allows only a few specific street vendors to operate in certain areas. a
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!