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WARRIOR [948]
2 years ago
5

Consider a hypothetical closed economy in which households spend $0.65 of each additional dollar they earn and save the remainin

g $0.35. The marginal propensity to consume (MPC) for this economy is , and the spending multiplier for this economy is .
Business
1 answer:
Elena-2011 [213]2 years ago
7 0

Answer:

Marginal propensity to consume or MPC = 0.65

Multiplier or k = 2.85714 rounded off to 2.86

Explanation:

The marginal propensity to consume (MPC) is the proportion of increased disposable income that consumers spend. It is a metric to quantify the induced consumption and how an increase in consumer spending occurs as a result of increase in income.

MPC is calculated as follows,

MPC = Change in consumer spending / change in income

MPC = 0.65 / 1

MPC = 0.65

To calculate the multiplier, we simply use the following formula,

Multiplier or k = 1 / (1 - MPC)

k = 1 / (1 - 0.65)

k = 2.85714 rounded off to 2.86

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Which statement is true regarding the Preferred Vendor field in Product and Services items?A. You can add more than one preferre
Ivanshal [37]

Answer: B. You can create a new vendor from the product/service information screen

Explanation:

The statement that is true regarding the Preferred Vendor field in Product and Services items is that can create a new vendor from the product/service information screen.

Other statements given in the question such as adding more than one preferred vendor to each product/service item and Preferred vendors must be assigned to utilize Price rules are not true.

Therefore, option B is the correct answer.

3 0
2 years ago
The question, "What are the distinguishing characteristics of effective leaders?" sparked which approach to the study of leaders
Sergio [31]

Answer:

behavioral approach to the study of leadership

Explanation:

In simple words, The behavioral approach is only concerned with what managers do and what they behave. The behavioral approach broadened the science of leadership to encompass the activities of leaders toward followers in diverse settings by moving the study of leadership to leader behaviors. Monitoring and analyzing a leader's movements and behaviors in response to a given circumstance is central to behavioral leadership theory.

7 0
2 years ago
What is an action that will not help you activate your network?
neonofarm [45]

Answer:

Help a friend finish her college application

Explanation:

All these actions will help me activate my network :-

  • Ask for an informational interview at your favorite company
  • Get coffee with an alumnus from your high school
  • Read a detailed book about your dream job

Except :-

  • Help a friend finish her college application
8 0
2 years ago
Elmdale Company has a machine that affixes labels to bottles. The machine has a book value of $80,000 and a remaining useful lif
AveGali [126]

Answer and Explanation:

The preparation of the analysis  showing whether the old machine should be retained or replaced is presented below:

Particulars           Retained equipment       Replace equipment     Change in the net income

Variable cost        $1,560,000                 $1,230,000                $330,000

                  ($520,000 × 3 years)       ($410,000 × 3 years)

Cost of the new

machine                                                         $300,000                        -$300,000

Net change                                                                                               $30,000

As we can see the amount comes in positive which reflects that the machine should be replaced

3 0
2 years ago
In the long run a company that produces and sells laundry detergent incurs total costs of $2,500 when output is 1,250 units and
Schach [20]

Answer:

The correct answer is a) economies of scale

Explanation:

Economies of scale are when a company increases the production or associate with other company, to obtain a better price to reduce the cost of production. This happens because costs are spread over a larger number of goods.

Example:

Company A, require apples to produce his final product. And the provider has a price for each apple, however, if you buy more than 100, he gives you a discount of 5%. Company A can´t afraid this, because it just needs 50 apples per production.

The solution for the company is trying to expand the market, become efficient, to duplicate his production and obtain the discount. Or associate with Company B that needs 50 apples too, to obtain the discount and reduce his cost.  (1 big purchase is better than 2 small purchases)

8 0
2 years ago
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