A survey of 50 randomly decided on homeowners unearths that they spend a mean of $74r according to month amount on domestic renovation. lower endpoint: | 71.74
Endpoints are bodily gadgets that connect with a community gadget which includes cellular devices, desktop computers, digital machines, embedded gadgets, and servers.
Top endpoint: 76.56
= sample (n) = 50
tmean (x) = $74
Repastatto (s) = $11
at 90% confidence level Zcritical value is
a = 1 - 0.90
= 0.10
= a/2 = 0.10/2
= 0.05
Z a/2 = Z 0.05
= 1.645
(71.44, 76.56 )
decrease endpoint: |71.44
upper endpoint: 76,56
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the brinton clothing company wants to create and build brand awareness. it would use advertising. multiple choice persuasive push reminder pull informative
The Brinton clothing company would use informative advertising to increase brand awareness.
Informative advertising appeal to potential clients with facts rather than feelings. These advertisements frequently incorporate information about a product that highlights its advantages over rivals or illustrates its worth to consumers. If a company updates an existing product or is compelled by law to disclose specific information about it, it may also utilize informative marketing.
Making customers aware of new or improved items can frequently be accomplished using informative marketing. Businesses can employ educational commercials to highlight the most crucial details about their goods and show how valuable they are.
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you have $2,500 on a credit card that charges a 23% interest rate. if you want to pay off the credit card in 4 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? $ each month
In order to pay off the sum in 4 years, $80.13 a month will be required. Interest charges total $1,346.18.
A credit card is a small plastic card that can be used to make purchases or withdrawals. It is issued by a bank, company, or other entity and functions as an unsecured loan to the cardholder. A card's credit limit, which is the maximum amount of credit it can grant, should not be exceeded. The owner of the credit card might be charged a fee if the limit is exceeded. The credit card holder has the option of paying off the entire balance at the end of the month or choosing to carry a balance that accrues interest until it is paid off. Keep in mind that credit card interest rates typically run higher than those for other popular loans like mortgages, auto loans, and student loans.
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select the statement that best defines required reserves. the amount banks are required by law to hold on each mortgage. the amount of reserves a bank has below the required amount. the amount of reserves banks have on hand to satisfy the demands of other competitors. the amount of reserves a bank must keep on deposit at the fed or in their vault on a given deposit.
The quantity of reserve banks have available to meet consumer needs. the amount that banks must legally keep on each bond.
Bond, what do you mean?A bond is a product that has been created to represent a loan from investors to a borrowers, typically a government or business. A bond is comparable to a contract that specifies the terms of a loan and the payments that will be made both by the lender and the borrower.
How Do Bonds Work?Bonds are a type of asset that are sold by corporations and governments to raise funds from investors. Selling bonds is therefore a way to obtain credit from the seller. The act of buying bonds is viewed as an investment by the buyer.
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what are your goals when communicating this message? check all that apply. promise rebates. be fair. maintain friendly relations. encourage further correspondence. project a professional image.
The project a professional image is your goals when communicating this message. Face-to-face interactions, phone calls, texts, emails, social media sites like Face-book and Twit-ter, the Inte-rnet, radio, TV, written correspondence, pam-phlets, and reports are some of these.
For efficient communication, selecting the right media is essential. In daily life, communication enables us to connect with people, share our experiences and needs, and strengthen our bonds. All of us must communicate. The term "communication" refers to the sharing of ideas and opinions between two or more people. Writing, speaking, gestures, symbols, and textual communication are all acceptable forms of communication.
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the doctor in the video changed his practice due, in part, to the high administrative costs associated with filing all of the insurance paperwork. approximately how much of each dollar spent on healthcare in the united states goes toward administrative costs?
The doctor in the video changed his practice due, in part, to the high administrative costs associated with filing all of the insurance paperwork. The dollar spent on healthcare in the united states that go toward administrative costs is 10%
What are administrative costs?Generally, Administrative costs are costs incurred by a business that are not directly linked to a certain core activity, such as manufacturing, production, or sales.
These costs may include rent, utilities, and insurance. As a contrast to the expenditures that are exclusive to particular departments or business units, these overhead costs are incurred by the company as a whole.
The medical practitioner in the video decided to alter his business in part because of the hefty administrative expenses connected with submitting all of the necessary insurance paperwork. 10% of every dollar that is spent on medical treatment in the United States goes toward covering administrative expenses.
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Which one of the following is true?
1. Under US tax law, all company interest payments are taxable to the company
2. Under international tax law, all company interest payments are taxable to the company
3. Under US tax law, a corporation's interest payments are tax-deductible
4. Under international tax law, all company interest payments are tax-deductible
The following statement "Under US tax law, a corporation's interest payments are tax-deductible" is true.
Taxes are required payments given to individuals or organizations by a government agency, whether local, regional, or federal. Public infrastructure and services like roads and schools, as well as government programmes like Medicare and Social Security, are all financed with the help of tax dollars.
Taxes are used by the government to pay for a range of social programmes, including measures to create jobs. The government is in charge of paying the thousands of employees in the various departments' administrative costs.
Hence the correct option is 3
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which legally required form divulges information about financial advisors? a. form dav b. form avd c. form adv d. form dva please select the best answer from the choices provided
Form ADV is the standard form used by investment advisers to register with the SEC and state securities regulators. Thus, the correct choice is (b) from AVD.
Who is required to submit a Form ADV?Form ADV must be submitted by both exempt reporting advisors and advisers who must register with the SEC. The SEC keeps the information on this form and makes it available to the public. The SEC may return forms with incomplete information.
Business income deductions can take many different forms. A given monetary deductible must be evaluated only once. A Waiting Period deductible necessitates dexterity. To successfully execute an Average Daily Value (ADV) deduction, you must first understand its components and concerns.
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you observe that the current interest rate on short-term u.s. treasury bills is 4.79 percent. you also read in the newspaper that the gdp deflator, which is a common macroeconomic indicator used by market analysts to gauge the inflation rate, currently implies that inflation is 1.6 percent. what is the approximate real rate of interest on short-term treasury bills
3.19% is the approximate real rate of interest on short-term treasury bills.
Nominal rate minus inflation rate equals real rate.
Real rate equals 4.79% - 1.6%
= 3.19% real rate
The nominal rate on US Treasury Bills is 4.23%, and the inflation rate is 1.2%. To determine the real rate, we simply subtract the nominal rate from the inflation rate in order to arrive at the precise rate.
A Treasury Bill (T-Bill) is a short-term obligation of the United States government backed by the Treasury Department, with a maturity of one year or less. Usually, you can buy $1,000 bills from the Treasury. However, a maximum non-competitive offer amount of $5 million is permitted. Many people consider these products to be secure and risk-free investing options.
The Treasury Department sells T-Bills through auctions that include both competitive and non-competitive bidding. By averaging all of the competitive proposals that were received, a noncompetitive bid's price, also known as a noncompetitive tender, is established. T-Bills often have very high tangible net worth.
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Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance. Material Loading Time Charges Charges $192,400 Technicians' wages and benefits $39,600 Parts manager's salary and benefits Office employee's salary and benefits 51,800 9.400 Other overhead 14,800 19,600 Total budgeted costs $259,000 $68.600 The company desires a $39 profit margin per hour of labor and a 27.00% proft margin on parts. It has budgeted for 7,400 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $392,000. Compute the rate charged per hour of labor. Labor rate $ per hour Compute the material loading percentage. (Round answer to 3 decimal places, e.g. 10.501%.) Material loading percentage % Pace Corporation has requested an estimate to rebuild its spot welder. Second Chance estimates that it would require 38 hours of labor and $2,800 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, eg. 10.50.) Total estimated bill
According to budgeted cost data total estimated bill is $6858
Budgeted cost per labor hour 35 = 259000/7400
+Profit margin 39
Labor rate 74 per hour
Material loading charges 17.5% = 68600/392000
+Profit on parts 27%
Material loading percent 44.5%
Labor charges 2812 = 38×74
Materials parts 2800
Material loading charges 1246 = 2800×44.5%
Total estimated bill 6858
Budgeted cost data- Budgeted costs are anticipated future costs that the company anticipates racking up in the future. In other words, based on anticipated revenues and sales, it is an estimated expense that management anticipates will be incurred in a future period.
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The sales philosophy and process that emphasizes a commitment to maintaining customer relationships over the long term and investing in opportunities that are mutually beneficial to all parties is known as ________ selling.
Relationship selling is a sales methodology and concept that places a strong emphasis on sustaining long-term client relationships and investing in business possibilities that benefit both parties.
What different forms might relationship selling take?Commercial, functional, authoritative, and strategic interactions are the four different kinds of connections between buyers and sellers. The four fundamental sales techniques that salespeople employ are needs-satisfaction selling, collaborative selling, strategic partner selling, and script-based selling.
What are two goals of relationship selling?There are various advantages to relationship selling. Several of these advantages include: increasing client satisfaction, which encourages greater word-of-mouth and helps businesses better understand what customers want. Developing a connection with the client encourages them to feel important and makes them more likely to make purchases.
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which of the following is not as critical as others when thinking about investing your money? your goals. your money personality. your time preference. which mutual funds that performed the best last year.
When considering where to invest your money, the performance of the greatest mutual fund the previous year is not as crucial as other factors.
Knowing one's financial personality will help determine if they are aggressive spender or saver. It will also help them choose their preferred methods of spending their time and their financial objectives.
The mutual funds that performed well last year are not expected to do well this year since there is no guarantee that their performance will repeat itself. Therefore, determining which mutual funds performed better last year is not crucial.
Savings accounts have the potential to yield substantially larger returns than investing, but this advantage comes with risk, particularly over shorter time periods.
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belkin company provides medical care and insurance benefits to its retirees. in the current year, belkin agrees to contribute 5% of the employees’ $400,000 gross salaries to a retirement program. what is the amount of employee benefits expense for the current period?
The number of employee benefits expenses for the current period:
$17,500
(Explanation: 5% × $350,000 = $17,500).
An employee is a person who gets paid to paint for someone or a company. employees don't want to paintings complete time to be considered employees—they virtually want to be paid to paintings through an business enterprise (the person or commercial enterprise that will pay them).
An example of an employee is a sales partner at a retail save. for the reason that workers ought to whole tasks in a distinctive manner, which includes carrying a name badge and greeting the purchaser with specific phraseology, the employee is taken into consideration as an employee.
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the spread (difference) between the yield on conventional bonds and the yield on indexed bonds with the same maturities is an indication of the expected inflation rate.
Yes it is true that the spread (difference) between the yield on conventional bonds and the yield on indexed bonds with the same maturities is an indication of the expected inflation rate.
The yield on a bond is associated with its price. The cash flows and the requisite yield are used to determine a bond's price. A bond's yield is determined using its cash flows, market price, and accrued interest. a kind of bond where the interest rate or other payments are linked to an index and change in response to the rate of inflation: At this time, indexed bonds have real yields of about 2%. Government bonds with an inflation index have been released.
An inflation-indexed security ensures a real return even though inflation is often unfavorable for the profitability of any fixed-income instrument since it frequently raises interest rates.
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Trade promotions and other short-term discounts offered by a manufacturer result in large orders during the promotion period followed by very small orders after that. True or False
It is true that trade promotions and other short-term discounts offered by a manufacturer result in large orders during the promotion period followed by very small orders after that.
Successful brands and wholesale distributors in the consumer products industry understand the value of trade promotions in their B2B commerce activities and use them to gain an advantage. Trade marketing takes many different shapes. They range from discounts when launching new product lines to innovative concepts implemented in stores, such motion-detecting cardboard cutouts that respond to passing customers with a melody.
However, you cannot advertise to B2B clients in the same manner as you would to consumers. Consumer promotions, also known as sales promotions, increase demand for a good or service by giving the customer something of value, such as a discount or a premium (free gift), among other things.
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Vin Motors, a car manufacturer, recently announced a 10 percent price cut for its premium cars. This move by Vin Motors led other car manufacturers to reconsider the prices of their cars. In the context of a firm's environment, Vin Motors is most likely to have directly influenced the A. O technological environment B. O intrinsic environment C. competitive environment D. O ergonomic environment E. O economic environment
The solution of all the parts of Stock and inventory is given below:
1. c
Vin Motors cut the prices of their premium cars due to which other car manufacturers also had to cut the prices. This is because Vin motors might have a huge capital base or they might have developed technology with the help of R&D which will help to manufacture complex parts at a cheaper price
2. (A) & (D)
The capacity risk is however linked to stock/inventory.
3. (A)
4.(C)
Differentiation strategy as the name suggests is offering the customers some unique products or services which the competitors are not offering and after the product is accepted by the customers, same can be sold at a higher price than any competitor due to its uniqueness
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The push for outsider dominance on boards has the benefit of including more ________ oversight of the CEO and the company strategy.
Multiple Choice
internal
independent
biased
superficial
The push for outsider dominance on boards has the benefit of including independent oversight of the CEO and the company strategy.
What does a director's independence mean?
A director must, in the Board's opinion, be free from any business or other affiliations that could materially interfere with, or could reasonably be believed to materially interfere with, the exercise of unrestricted and independent judgment in order to be considered independent.
Can a CEO be an independent director?
Directors must be independent for this purpose, and they are not allowed to keep management roles with the firm, its parents, or its subsidiaries for three years after they leave their posts.
What are CEOs responsible for?
The CEO is responsible to the Board of Directors for the efficient overall management of the business and for adhering to the board-approved policies.
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An employee at a firm uses chemicals to clean metals. The employee works with two others on an assembly line, and the facility is located on the ground floor of a multi-story industrial building. Which requirement will the firm face regarding this employee under occupational safety and health act (osha) regulations?
Company employees use chemicals to clean metal. The employee works with her two others on the assembly line, and the factory is on his first floor in a high-rise building. Employees must be trained in the safe handling of chemicals as required by the Occupational Safety and Health Act (osha).
What is Occupational Safety and Health Act (OSHA)?The Occupational Safety and Health Act of 1970 is the United States labor law that governs federal occupational safety and health legislation in the United States private sector and federal government. It was enacted by Congress in 1970 and signed by President Richard Nixon on December 29, 1970.
What are the occupational health and safety procedures?Occupational Health and Safety Procedures:
1) Wear correct protective equipment.
2) Work safely with ladders.
3) Be aware of electrical hazards.
4) Guard all unguarded holes.
5) Use safety lines when working underground.
6) Identify potentially explosive atmospheres.
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there has been a decrease in investment. as a result, real gdp will in the short run, and in the long run. group of answer choices decrease; increase to its initial level increase; increase further increase; decrease to its initial value decrease; decrease further
There has been a decrease in investment. As a result, real GDP will decrease in the short run, and increase to its initial level in the long run.
Gross domestic product is a monetary measure of the market value of all final goods and services produced and sold by countries during a given period. Due to its complex and subjective nature, this measure is often modified before it is considered a reliable indicator.
However, GDP per capita does not reflect differences in cost of living and inflation rates across countries; therefore, using a purchasing power parity (PPP) GDP per capita basis may be more useful for comparing living standards across countries, while nominal GDP is more useful for comparing economies country in the international market.
The above question is incomplete, the complete question is-
There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run.
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he cvs extra care card is an example of a , which is specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time. multiple choice rebate loyalty program sampling program cross-promotion premium
Based on business strategy, the cvs extra care card is an example of a loyalty program which is specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.
A client is someone who purchases goods, services, products, or ideas from a seller, vendor, or supplier in return for money or another useful consideration. This definition applies to sales, business, and economics.
Customers who frequently do business with a seller establish customs that enable regular, sustained commerce, which in turn enables the seller to create statistical models to optimize production processes that alter the nature or form of goods or services, as well as supply chains that alter the location or formally recognize ownership or entitlement transactions.
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which item is added to net income when computing cash flows from operating activities? a.gain on the disposal of property, plant, and equipment b.increase in wages payable c.increase in inventory d.increase in prepaid rent
When calculating cash flows from operational operations, the increase in salaries due is added to net income. Thus, the correct choice is (b) an increase in wages payable.
What is cash flow and why is it important?A cash flow is a payment (in a currency), often from one central bank account to another; the phrase 'cash flow' is most commonly used to describe payments that are projected to occur in the future, are thus unpredictable, and must thus be forecasted using cash flows. However, it is common to use cash flow in a broader meaning to describe payments into or out of a firm, project, or financial product. Cash flow is vital because it allows you to satisfy current financial responsibilities while also planning for the future.
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consider an economy in equilibrium. suppose the households of this economy now expect the economy to grow in the future. complete the following feedback loop reflecting the multiplier effects of this shock on a modern economy.
The following is the feedback of modern economy,
consumption - rises
investment - rises
firm revenues - rises
labor demand - rises
unemployment - falls
-household incomes -rise
-asset prices - rise
-mortgage defaults - fall
-firm bankruptcies - fall
-financial intermediation - rises
What is modern economy?The domestic community and the outside world engage in economic activity in modern economies. In multinational communities, people and businesses can exchange goods and services as well as money for cross-border investments.
In today's world, capitalism is the dominant economic system. The fact that private organizations (as opposed to state-owned ones) manage property and production according to their interests is one of the essential features of a capitalist economy.
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Which of the following types of reports generated by a point-of-sale system provides an analysis of each server in terms of guest count, total revenue, and average revenue per guest?
a. daily server productivity report
b. transaction summary report
c. transaction audit report
d. open check report
Which of the following point-of-sale system reports provide a breakdown of each server's daily server productivity report, total revenue, and visitor count?
Describe a server?A program or apparatus that offers a remote server as well as its user, often known as the client, is referred to as a server. The actual computer that a servers program runs on in a data center is also commonly referred as a server.
Can a computer act as a server?When a computer has an internet service and a web server program installed on it, it can in fact serve as a server. You can enable people to access your computer by installing a web server on it.
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A project manager can note any action items or key points is the __________, a document that is used to communicate the progress of the project over time.
a.) project timeline
b.) feedback channel
c.) status report
d.) project log
A project manager can note any action items or key points in the project timeline, a document that is used to communicate the progress of the project over time.
Ordinary requirements generally consist of a minimum of 3 years of enjoyment in a related function, the capacity to communicate, formal education, and a PMP certification. Certification may be received via a professional affiliation, a university or college, or thru a specially focused online getting-to-know application.
Despite the fact that you can discover that many challenge manager positions require experience, it is feasible to get a job in mission management without enjoy, especially if you're in a position to reveal your dedication to the industry and that you have the abilities undertaking management calls for.
Not enormously, task management can be rather stressful. we're liable for shipping on time, on budget, and on the scope but often need to deal with restrained or poorly ready assets, unrealistic client expectancies, and a to-do list that would easily attain the moon and lower back.
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the main responsibility of a central bank is: group of answer choices monetary but not fiscal policy fiscal but not monetary policy both monetary and fiscal policy neither monetary or fiscal policy
The main responsibility of a central bank is both monetary and fiscal policy.
central bankA central bank, reserve bank, or monetary authority is an entity that handles a country's or monetary union's currency and monetary policy, as well as its commercial banking system. A central bank, unlike a commercial bank, has a monopoly on growing the monetary base. Most central banks also have supervisory and regulatory authorities to maintain the stability of member institutions, prevent bank runs, and deter member banks from engaging in irresponsible or fraudulent activities.
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Farmer Company sold a piece of equipment for $6,000. The equipment had an original cost of $34,000 and accumulated depreciation of $31,00 time of the sale. Which of the following correctly shows the effect of the sale on the elements of the financial statements? Balance Sheet Stockholders' Assets = Liabilities + Equity A. 3,000 NA 3,000 B. (3,000) NA (3,000) C. 3,000 NA 3,000 D. 6,000 NA 6,000 Income Statement Revenue/Gain Expenses = Net Income 3,000 NA 3,000 NA 3,000 (3,000) 3,000 NA 3,000 NA NA 6,000 Statement of Cash Flows 6,000 OA 6,000 IA 6,000 IA 6,000 IA Multiple Choice Option B Option A Optionc
Farmer Company sold a piece of equipment for $6,000 so therefore option B is correct. (3,000)NA(3,000)
What is a Accumulated depreciation on a balance sheet?The amount of depreciation recorded as an expense on the income statement from the time the company bought the asset to the balance sheet date is represented by the accumulated depreciation figure on the balance sheet. There is a "original basis" (the original cost) and a "accumulated depreciation" for each asset you currently own (essentially, how much value it has lost, which is now considered an expense on your books).
When you record depreciation on a tangible asset, you credit accumulated depreciation for the same amount while debiting depreciation expense. This allows you to see how much of an asset has been written off and gives you an estimate of how much longer it will be useful. It also reveals the asset's net book value on the balance sheet.
Is accumulated depreciation an asset?Accumulated depreciation, also referred to as a long-term contra asset account, is an asset account having a credit balance that appears on the balance sheet under the heading Property, Plant, and Equipment. the sum of money set aside from the cost of purchasing a long-term asset. Depreciation that has accumulated over time is not an asset because the balances in the account will not generate income for the company over a number of reporting periods. In reality, accumulated depreciation is a measure of how much economic value has been lost over time.
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Which of the following would cause the aggregate demand curve to shift to the left?
Group of answer choices
Consumers and firms become more optimistic about the future
An increase in investment
An increase in taxes
An increase in government purchases
An increase in taxes will shift the aggregate demand curve to the left.
The entire amount of products and services that consumers are willing to buy in a specific economy and during a specific time period is known as aggregate demand (AD). It is also referred to as a "shift" when aggregate demand changes in a way that modifies its connection with aggregate supply (AS).
When overall consumer spending declines, the aggregate demand curve typically moves to the left. Because of growing living expenses or higher government taxes, consumers may spend less.
If consumers anticipate price increases in the future, they may opt to spend less and save more. It's possible that consumer time preferences shift with time, favoring future consumption over current consumption. A contractionary fiscal strategy may also cause the overall demand to move to the left.
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discuss whether the project is feasible by addressing each of the three triple constraint components: scope, cost, and timeline.
The three interconnected levels of a project's time, scope, and cost are known as the "Triple Constraint," which can be changed when managing projects.
What does triple constraint theory entail?A project is constrained by any restrictions or limitations imposed on it. The project has a time limit when, for instance, a deadline is established for its completion and publication. The budget/cost, time, and scope limitations are the three that the triple constraint theory states every project will have. And there is a connection between these restrictions. The three constraints interact with each other, so any change to one will have an impact on the other two.
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which of the following statements about blue ocean strategy is true? multiple choice question. it requires reconciling the trade-offs between differentiation and low cost. it is the easiest type of strategy to implement. its goal is to reduce costs by offering a standardized product to the mainstream customer. its success requires that the firm that implements the strategy be highly centralized.
Success requires that the firm that implements the strategy be highly centralized is one of the strategy of Blue ocean company.
How do centralization and decentralization differ?In any organization, there are two ways to work: centralization and decentralization. For the purpose of making all significant decisions for the company, formal authority is centralized in a hierarchy. Additionally, decentralization leaves decision-making to the organization's lower levels.
What does centralization mean in a company context?When management and decision-making authority are concentrated at the top of an organizational hierarchy for the goal of coordinating human, financial, and other resource allocation, this is referred to as centralization.
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abc industries has a cash balance of $50,000; accounts payable of $150,000; inventory of $190,000; accounts receivable of $250,000; notes payable of $210,000; and accrued wages and taxes of $40,000. how much net working capital does the firm need to fund?
Net working capital does the firm need to fund $90,000 .
An industry is a prison entity shaped by means of a group of individuals to engage in and function as a commercial enterprise—business or business—organization. An industry may be organized in various ways for tax and monetary legal responsibility functions depending on the company law of its jurisdiction.
There are 3 not unusual varieties of companies—sole proprietorship, partnership, and business enterprise—and each comes with its very own set of blessings and downsides.
Typically recognized forms of agencies like, private agencies and Public agencies are defined based totally on a number of individuals (shareholders). In any company, besides OPC, the membership can be held by way of any man or woman or even a frame corporate.
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Calculate the resulting change in GDP for each of the following MPCs when the government increases its spending by $250 billion.
Instructions: Round your answers to one decimal place.
a. The marginal propensity to consume (MPC) = 0.2.
The change in GDP is $ _______billion.
b. The marginal propensity to consume (MPC) = 0.5.
The change in GDP is $______ billion.
c. The marginal propensity to consume (MPC) = 0.8.
The change in GDP is $ _____billion.
d. Comment on the relationship between the MPC and the resulting change in GDP—as the MPC rises, does its effect on GDP (increase or decrease)?
As the MPC rises, its effect on GDP (Click to select)(stays the same decreases increases)
a. The marginal propensity to consume (MPC) = 0.2.
The change in GDP is $ 62.5 billion.
b. The marginal propensity to consume (MPC) = 0.5.
The change in GDP is $ 250 billion.
c. The marginal propensity to consume (MPC) = 0.8.
The change in GDP is $ 1000 billion.
d. As the MPC rises, its effect on GDP increases.
GDP multiplier = 1 / (1 - MPC)
Current GD = $ 250
When MPC = 0.2
GDP multiplier = 1/(1-0.2)
=1.25
The change in GDP is $ (1.25 * 250) - 250 = 312.5 - 250 = 62.5 billion.
When MPC = 0.5
GDP multiplier = 1/(1-0.5)
=2
The change in GDP is $ (2 * 250) - 250 = 500 - 250 = 250 billion.
When MPC = 0.8
GDP multiplier = 1/(1-0.8)
=5
The change in GDP is $ (5 * 250) - 250 = 1250 - 250 = 1000 billion.
gross domestic product
one of the maximum common is GDP, which stands for gross home product. it's miles often referred to in newspapers, at the tv news, and in reviews by using governments, valuable banks, and the business network. It has become widely used as a reference point for the health of national and international economies.
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