Businesses in the nation of Islandia have been accumulating cash because they have a pessimistic outlook of the national economy. Recent changes in the economic outlook of Islandia have caused business leaders to begin to invest some of their accumulated cash. Suppose that businesses in the country invest a total of $20 billion of this cash. (a) What would be the maximum expected change in GDP if Islandia's marginal propensity toconsume (MPC) is 0.75? (b) Suppose that the recent economic outlook in the country of Mountainia has been the opposite.Businesses have postponed planned investments and have begun to accumulate cash. Ifbusinesses in Mountainia postpone $10 billion of their planned investments, what would be themaximum expected change in GDP if its marginal propensity to save (MPS) is 0.25?

Answers

Answer 1

Answer:

Please see answer and explanation below.

Explanation:

A. Since MPC is 0.75, therefore MPS would be 0.25 (i.e 1-MPC, 1-0.75)

The multiplier will now be(1/MPS) 1/0.25=4

It therefore follows that if investment increases $20billion, aggregate demand will also increase by $80billion(i.e 20 × 4). This means $60billion in consumption and $20billion in investment.

B. Since MPS is 0.25, Multiplier would therefore be 1/0.25(1/MPS) = 4

It therefore follows that if $10billion planned investments is postponed, the aggregate demand would decrease by $40billion( i.e 10 × 4 )

Meaning that there would be $30billion in consumption and $10billion in investment.


Related Questions

What is the definition of hangry my friend keeps saying it but i dont understand

Answers

Answer:

hangry is when you feel hungry and angry at the same time

Explanation:

basically, your angry because of the fact that your hungry

homes for sale by owner always save the buyers money on a commission.
a) true
b) false

Answers

Answer:

b) false

Explanation:

This statement is false. When a home-owner decides to sell their property by themselves without the help of a realtor it is called an Open Listing. This saves the seller money by not having to pay a commission to anyone but usually since the price of the home stays the same the buyer is not saving any money. There are few cases in which not having to pay a commission allows the seller to lower the price of the house a little bit and attract more buyers but this is usually not the case.

Read the scenario.
Madison received $100 as a holiday gift. She used it to buy 50 mineral infused candles for $2
each. Then, she walked around the neighborhood and sold the candles for $4 each.
R
What factors of production did Madison use?

Answers

Answer:

1/34

Explanation:

Answer:

all four factors of production

Explanation:

I just took the test now and got it right

The management of company B believes that money is the only way to motivate employees. Do u agree.justify ur answer?pls

Answers

Answer:

There are actually two answers to this question its a Yes and a No

Explanation:

The reason is some employees are realistic enough to be encourage by words WHILE some others believed to be encouraged by money but from my POV I think no

During the economic periods of ____ , the economy is at its highest point and unemployment is low, in addition, total income is high and consumers are willing to buy products and services.

Answers

Answer:

Prosperity.

Explanation:

This can be tagged to be an economic period or stage in fluctuation, contraction and other factors affect the growth of a business or a certain economy. Example can be seen when your business generally follows the same economic cycle as the others does in the economy, then warning signs of an impending recession suggest that it is not a good time for you to broaden or create new growth grounds. This cycle help a business organisation protect against downturns, and position themselves to gain maximum merits of economic expansions.

after you analyzed demand, you took steps to make sure your business made sense financially. How will thinking on the margin help increase the chance of long-term success for your business, even if additional competition enters your community.

Answers

Answer:

Thinking on the margin will ensure that each pair of inserts produced is turning a profit. Once a profit is no longer being made on a pair of inserts, production must be cut back. Understanding these margins will also help me stay competitive in a market that is open to other producers. If additional producers enter the market, I know that I have the ability to lower prices or offer discounts while still maximizing profits.

Explanation:

The thinking of the margin that increase the chances of the long term success should be explained below.

Long term success:

If we think on the margin so we assure that each & every pair of inserts generated should be converted in a profit. Once a profit is no longer being made on a pair of inserts, so here the production should be cut back. Understanding these margins will also help for  stay competitive in a market.

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The adjusted trial balance for Yondel Company at December 31, 2018 is presented below: Accounts Debit Credit Cash $ 8,000 Prepaid rent 23,000 Land 445,000 Accounts payable $ 12,000 Salaries payable 20,000 Common stock 230,000 Retained earnings 109,000 Dividends 14,000 Service revenue 340,000 Salaries expense 160,000 Rent expense 29,000 Utilities expense 32,000 Totals $ 711,000 $ 711,000 Prepare the closing entries for Yondel Company for the year ended December 31, 2018.

Answers

Answer:

Explanation:

Cash                        =8000

Prepaid rent           = 23,000

Land                       = 445000

Accounts payable                              = 12,000

Salaries payable                                  = 20,000

Retained earnings                              = 109,000

Dividends                    = 14,000

Service revenue                                   = 340,000

Salaries expenses      = 160,0000

Rent expenses             = 29,000

Utilities expenses         = 32,000

Net income = Service revenue - Salaries-Rent-Utilities-

=340,000-160,000-29,000-32,000 = 119,000

                                       

                                                       Journal

1.     Debit  Service revenue   - 340,000

      Credit income summary -                  340,000

2,    Debit Income summary -    221,000

      Credit Salaries expenses                              160,000

      Credit Rent expenses                                     29,000

      Credit Utilities expenses                                 32,000

3     Debit Income summary          119,000

      Credit retained earnings                                  119,000

4     Debit retained earnings          14,000

      Credit retained earnings                                   14,000

your total debt from all loans should not exceed what percentage of your gross monthly salary?
a) 16%
b) 26%
c) 36%
d)40%

Answers

Answer: The answer is c) 36 percent

Explanation:

Abigail sells rice to stores. She has total og 125 cavans that she plans to distribute to three stores. If she gives 1/5 of what she has to store A, can she divide the remaining equally to stores B and C? How many will store A and store B get

Answers

Answer:

Store A would get 25 Cavans

Store B would get 50 Cavans

Explanation:

Total of cavans is 125

Since she gives 1/5 of 125 cavans to A A would be getting 1/5 × 125 = 25

The balance would be 125 -25 = 100

If the balance is divided equally between B and C

= 100 ÷ 2

=50

Therefore,

Store A would get 25 Cavans

Store B would get 50 Cavans

Store C would get 50 Cavans

We are interest rate compounded annually beginning balance 1000 annual interest rate 8% what will your ending balance be after one year

Answers

Answer:

1080

Explanation:

Compound interest involves the reinvesting of interest.

The formula for compound interest is given by:

[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]

Where P is the principal (i.e the beginning balance),

r is the rate,

n is the number of times it is compounded,

t is the number of years

A is the ending balance.

Given that P = 1000, r = 8% = 0.08, t =1 years and it is compounded annually (i.e n = 1).

Substituting values into the formula and calculating gives:

[tex]A=P(1+\frac{r}{n} )^{nt}\\A=1000(1+\frac{0.08}{1} )^{1*1}\\A= 1000(1+0.08)=1000(1.08)\\A=1080[/tex]

1. Do you believe E-sports will continue to grow in the future? Why or why not?

Answers

Answer: I don’t really know but I think it will still be popular and lots of people will still play no matter what

Answer:

In terms of video games, yes. Because, everyone can play videogames, but not everyone can compete in physical sports.

Explanation:

I don't need to give an explanation since it's my opinion. So don't report this answer please...

form a correct sentence by unscrambling the following sentence en el espanol hay vocales cinco

Answers

Answer:

its option c

Explanation:

just found it the other guy is also correct

As an advertising manager of a company, you have been asked to write a proposal stating why the company should advertise and it's benefits to the company

Answers

Answer: Advertising helps expand the market of the company to have more people to know about the product

Explanation:

Proposal for advertising; My firm, xyz cooperation would love to handle the publicizing aspect of your product while you go ahead your business. We have been into these business for about 20years, so we understand the challenges that comes with the business and how they are tackled. We are creative and emerging with our services, as we offer them with reasonable and affordable prices, do read through our profile as we look forward working with you

Benefits;

1) We expand your market when we advertise for you

2) We brand your firm with a new look and make consumers get attracted

3) We offer a discount of 15% for new firms and subsequently 5% for consistent customers.

However, a capacity utilization rate that is nearing 100% is ............... because .......

Answers

Answer:

A capacity utilization rate that is nearing 100% is ideal because it means that company's actual output is almost the same as its maximum possible output.

Explanation:

Capital utilization rate is used to calculate the rate at which levels of output are met. It is defined by the given formula:

Capacity utilization = (Actual level of output / Maximum level of output) · 100

If the Capacity utilization rate is near 100%, it means that actual level of output is almost same as the maximum level of output, which is considered as the Ideal rate.

Ideal rate is usually not possible because there are a lot of hurdles in the processes. A rate of 85% is considered the optimal rate for most companies.

Which of the following roles best fits the situation?
Kevin wants to create a business but is not sure what role is best for him. He has capital to invest. He has several partners with which he can begin a business. He has the most management experience of all his potential partners.

A. Limited partner in a limited partnership.
B. Neither a limited or general partner would be a good choice.
C. General partner in a limited partnership.

Answers

Answer:

The correct answer to the following question will be Option C.

Explanation:

Limited Partnership seems to be a form of cooperation where partner responsibility becomes restricted to the degree to which they should have invested their money. It is a companion contributing even just a capital, i.e. only financial stake.

General Partner seems to be the associate who continues to operate the alliance company and seems to be responsible for the company's activities.According to the above scenario, Kelvin has an investment to open a company as well as a few partner organizations to do so. As some other collaborators have the financial commitment, a public benefit relationship should be established. He seems to have professional experience, though in this configuration he should choose to become a limited partner or shareholder.

So that the above is the right answer.

In a statistics examination the mean score was 78 and the standard deviation was 10
(a) Determine the standard score of two students whose grade were 93 and 62 , respectively.
(b) Determine the grades of two students whose standard score was -0.6 and 1.2 respectively.​

Answers

Answer:

a) determine the standard score of two students whose grade were 93 and 62 respectively

When preparing a business message, you should make your writing audience oriented. Audience oriented means a. attempting to get your audience to believe and accept your message. b. writing to solve a problem or convey information. c. presenting ideas clearly but concisely. d. concentrating on looking at the message from the receiver's perspective.

Answers

Answer:

D. Concentrating on looking at the message from the receiver's perspective.

Explanation:

When writing a business message, it is important to ensure that the perspective of the receiver is considered. There are two sides to a message; the speaker and the receiver. By making a business writtings audience oriented, it means that thoughts of the receiver or audience is considered alongside the message.

Although other skills such as; present ideal clearly but concise, attempt to get your audience to believe and accept your message, write to solve a problem or convey information are essential qualities of business writtings, yet do not point to audience oriented message.

"A" represents the new quantity demanded, while "B" represents the new quantity supplied.

1. What is the result of these changes?
a) equilibrium
b) excess supply
c) excess demand

2. Based on this graph, what will prices most likely do?
a) rise
b) fall
c) stay the same

**PLEASE INCLUDE EXPLANATION

Answers

Answer:

ca

Explanation:

because it is possible in the graph only

Answer:

1.) Excess supply

2.) Fall

Explanation:

Edge

How do the effects of voluntary restraint agreements differ from the effects of a tariff? Tariffs reduce trade by more than voluntary restraint agreements. Voluntary restraint agreements result in higher prices, which increase revenue for foreign firms, while the revenue raised from tariffs goes to the domestic government. Tariffs increase the prices of imports, helping domestic producers, while voluntary restraints do not. Voluntary restraint agreements are informal agreements that can be easily changed, while tariffs are not.

Answers

Answer:

Tariffs increase the prices of imports, helping domestic producers, while voluntary restraints do not.

Explanation:

A tarrif is defined as a tax that is imposed by government on goods and services that are imported from another country. Tarrifs are used to discourage imports by increasing their prices compared to locally produced goods and services.

Voluntary restraint agreements is is also called voluntary export restraint. It is a restriction on the amount of goods and services that exporters are allowed to export to other countries. It is also referred to as export visa.

Tarrifs results in increase in price of goods and services while voluntary restraint agreement does not.

Why is it important for insurance companies to have a large pool of people paying premiums?

Answers

Answer:

The premium payments of all the insured clients will cover the costs for the emergencies of the few who need it. The more people that pay premiums, the less likely each insured client will experience an emergency.

It is important for insurance companies to have a large number of people paying premiums in order to have the higher costs than the needy would have to be offset by the lower costs of the less needy.

If a risk pool is larger than it is, it is very helpful because it would make the premiums to be more stable as well as to be more predictable.

Pooling is very beneficial due to the fact that the cost of health care could be high and they could lead to significant costs. Risk pooling would help to ensure that those that are in need would be able to afford it when necessary.

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what are the objectives of the public sector?

Answers

Answer:

1. To prevent concentration of economic power and growth of private monopolies.

2. To also help the Government to enforce social control on trade and industry for ensuring equitable distribution of goods and services.

How can the government efficiently encourage an optimal level of research and
development?
O All of these answers
Provide grants to academic and private researchers
O Fund research directly
O Enforce an effective patent system

Answers

Answer:

Enforce an effective patent system

Explanation:

Patent is defined as the government authority that bestows the full right and title of ownership to an investor in order to keep others away from making and selling such invention for a defined period of time.

The enforcement of effective patent system serves as incentives for optimal level of research and development as researchers feel recognized for their efforts and will be willing to do more as they know that inventions are now protected from duplication by others . Moreover , returns in investment are now guaranteed.

what is organic manure? how can it help to farmer. Ans from class 8

Answers

Answer:

manure that is from decayed plaint and animal matter, helps crops consume more nutrients.

Explanation:

organic manure is derived from decayed plant/animal matter. Inorganic manure, exclusively now referred to as fertilizers, are chemicals produced by controlled chemical processes. manure increases organic carbon in soil and thus leads to higher organic matter in soil. organic matter is the soil fertilities assessment index. If there is enough organic matter in the soil, there would be more microbe development, so crops will consume more nutrients from the soil.

hope this helped!

A company in Maine sends lobsters to France What is Maine doing? Select three options​

Answers

Answer:

Following are the answer to this question:

Explanation:

Some information is missing in the question. So, the correct choices can be described as follows:

i) practicing international trade

ii) exporting products

iii) participating in globalization

Maine has been globally traded because its, company transfers it's own goods at international frontiers when a client gives lobster with France in Maine.  It exports products as its goods are manufactured in one nation, in this scenario the USA, is one other country, France in this case.Finally, it participates in the process of globalization because the company operates internationally by selling its products.

Answer:

B. practicing international trade

C. exporting products

D. participating in globalization

Dexter has recently joined an organization. His trainer, ken asks dexter to follow certain processes to complete his work faster. Dexter follows the processes without questioning ken. Which one of Aristotle's elements of good communication is being exemplified in the communication between dexter and ken?

Answers

Answer:

Ethos

Explanation:

Ethos is one of the three Aristotle's elements of good communication that is based on credibility. It explains the reason why a listener should believe what you are saying to them.

This can also come as a result of ones position and in the environment where he is communicating or because of his expertise and skills and knowledge in the subject of communication which actually convince the listeners that you are more knowledgeable.

Ken's position as Dexter's trainers makes allows his credibility to Ken.

Answer:

Ethos

Explanation:

Answered it right on edmentum

Which statement best describes the role of a credit agency?

A. It tracks the use of credit for lenders.
B. It predicts future earning potential for lenders.
C. It teaches how to make smart financial decisions.
D. It shows how saving money makes financial sense.

I’m confused other people on here either answered A or B...I’m not sure which one it is :/

Answers

A. It tracks the use of credit for lenders.

Explanation:

I've taken the test already, I hope, me getting the answer wrong, will help others!

The correct answer is A. It tracks the use of credit for lenders.

Credit agencies, also known as credit rating agencies, help potential lenders and creditors determine whether to lend or extend credit to an individual or business, by predicting the likelihood that the borrower will repay the debt in a timely manner.

What is the main role of the three major credit reporting agencies?

Equifax, Experian and TransUnion are the three main consumer credit bureaus. They collect and store information about you that they use to generate your credit reports, which are used as the basis of your credit scores.

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compare and contrast reference theory of meaning and idea theory of meaning

Answers

Explanation:

Reference theory of meaning is a philosophical thought that believes the meaning of a word or acronym is doing in what it points out in the world. But the idea theory of meaning feels the meaning of a word or acronym lies in the group it represents.

For example, the meaning of the term would be seen as relating to illnesses and viruses as well as number of years from the point of view of idea theory of meaning. While the reference theory of meaning would allude the meaning using proper reference to the illness (Coronavirus) that caused the disease.

“Creditors do not actually have to worry about their dues in case the business fails.” In which
form of business is this possible? Which special feature is highlighted in this statement ?

Answers

Answer:

Sole proprietorship

The sole proprietor(not creditors but creditor) bears all losses

Explanation:

Sole proprietorship is a form of business in which there is no legal difference between the owner and the business entity as both are one and the same. The term 'sole' connotes 'only' while 'proprietorship' connotes 'owner(ship)'; it is also referred to as individual entrepreneurship. This is because only the owner of the business (the proprietor) bears all the risks (losses, debts, legal actions etc) and benefits (profits, dividends etc) of the business venture. He owns all the assets of the business venture, debts as well as the legal actions (whether positive or negative); when business is faring well, he enjoys a handsome profit and when business is struggling, he also bears the brunt of it.

The special feature highlighted in the statement above is the reality that the "creditors" refers simply and only to the proprietor (the owner of the business); in which case, if the business fails, the proprietor does not have to bother about the backlash from creditors' pressures, legal actions etc. He is the sole bearer of the losses of the business venture.

Technology allows firms to listen to customers' wants, track their purchases, provide them with better service, and give them more access to information.

Answers

Answer:

This is true

Explanation:

With the recent development in modern communication technologies, communication with customers is is now very easy and yet very sophisticated. The advent of modern day communication in business like the internet and online shopping had now made it possible for a customer to communicate their wants easily to the seller and also make purchase, track their purchase and easily access more information about their seller and their purchase all from the comfort of their homes.

A man in San Rafael County was discovered committing workers' compensation fraud. He had been observed working while at the same time receiving disability benefits. Surveillance showed the man working at an automobile auction. The investigator interviewed the owner of the auction and found that the claimant was being paid $200 per week in cash for washing vehicles and performing other shop tasks. Surveillance video showed the man carrying 25-pound bags of pet food, loading boxes, and rummaging through a trash dumpster. Obviously, he was not hurt very badly. 1. Was surveillance the proper method to use in this case? Why? 2. What are some restrictions to be careful about in conducting surveillance?

Answers

Answer:

1. Yes

2. - privacy concerns

- may lack full details.

Explanation:

1. In this scenario the automobile auction house would need to show video evidence of his (San Rafael's) fraud activities to the investigator.

2. Privacy concerns such as how the information gotten from video surveillance is used may pose a challenge.

There's also the reality of a lack of full details. For instance, San Rafael may be deaf a disability that cannot be reflected well on a surveillance video that shows him working.

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What type of extreme weather does global warming cause? Find the approximate circumference of a circle with a diameter of 80 yards.251 yards502 yards126 yards25 yards Is the relation a function? Why or why not?{(-8, -4).(-2, 0), (1, 3).(-2.6)} On March 1, Sather Co. sold merchandise to Boone Co. on account, $28,400, terms 2/15, n/30. The cost of the merchandise sold is $19,500. The merchandise was paid for on March 14. Assume all discounts are taken.Required:Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate companys Chart of Accounts for exact wording of account titles.CHART OF ACCOUNTSSummit Co.General LedgerASSETS110 Cash121 Accounts Receivable-Beartooth Co.125 Notes Receivable130 Merchandise Inventory131 Estimated Returns Inventory140 Office Supplies141 Store Supplies142 Prepaid Insurance180 Land192 Store Equipment193 Accumulated Depreciation-Store Equipment194 Office Equipment195 Accumulated Depreciation-Office EquipmentLIABILITIES210 Accounts Payable216 Salaries Payable218 Sales Tax Payable219 Customers Refunds Payable221 Notes PayableEQUITY310 Owner, Capital311 Owner, Drawing312 Income Summary REVENUE410 Sales610 Interest RevenueEXPENSES510 Cost of Merchandise Sold521 Delivery Expense522 Advertising Expense524 Depreciation Expense-Store Equipment525 Depreciation Expense-Office Equipment526 Salaries Expense531 Rent Expense533 Insurance Expense534 Store Supplies Expense535 Office Supplies Expense536 Credit Card Expense539 Miscellaneous Expense710 Interest ExpenseCHART OF ACCOUNTSBeartooth Co.General LedgerASSETS110 Cash120 Accounts Receivable125 Notes Receivable130 Merchandise Inventory131 Estimated Returns Inventory140 Office Supplies141 Store Supplies142 Prepaid Insurance180 Land192 Store Equipment193 Accumulated Depreciation-Store Equipment194 Office Equipment195 Accumulated Depreciation-Office EquipmentLIABILITIES211 Accounts Payable-Summit Co.216 Salaries Payable218 Sales Tax Payable219 Customers Refunds Payable221 Notes PayableEQUITY310 Owner, Capital311 Owner, Drawing312 Income Summary REVENUE410 Sales610 Interest RevenueEXPENSES510 Cost of Merchandise Sold521 Delivery Expense522 Advertising Expense524 Depreciation Expense-Store Equipment525 Depreciation Expense-Office Equipment526 Salaries Expense531 Rent Expense533 Insurance Expense534 Store Supplies Expense535 Office Supplies Expense536 Credit Card Expense539 Miscellaneous Expense710 Interest Expense A circular garden has a diameter of 12 feet. 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