Assume an increase in investment spending by $100, and a marginal propensity to consume (MPC) of 0.6. How much would GDP increase after the $100 was absorbed by the economy due to the multiplier effect

Answers

Answer 1

Answer:

The increase in GDP is $250

Explanation:

The increase in investment spending = $100

Marginal propensity to consume = 0.6

Now we have to find an increase in the GDP after absorbing the $100.

Therefore, we need to find the multiplier by using the marginal propensity to consume.

Multiplier = 1 / (1-MPC)

Multiplier = 1/( 1- 0.6)

Multiplier = 2.5

The increase in GDP = increase in investment spending × Multiplier

The increase in GDP = 100 × 2.5 = $250


Related Questions

A project with an initial cost of $28,300 is expected to generate cash flows of $6,900, $9,000, $9,250, $8,150, and $7,700 over each of the next five years, respectively. What is the project's payback period

Answers

Answer:

3.39 years

Explanation:

The computation of the project payback period is shown below:

Initial cost = $28,300

Generated cash flows         Cumulative cash flows

1            $6,900                    $6,900

2           $9,000                     $6,900 + $9,000 = $15,900

3           $9,250                     $15,900 + $9,250 = $25,150

4           $8,150                      

5           $7,700

Here the payback period is

= 3 years + ($28,300 - $25,150) ÷ $8,150

= 3 years + 0.386

= 3.39 years

hence, the payback period is 3.39 years

What happened to the real estate market in the years between 2000 and 2008? What was the result of changes in the real estate market for people who bought houses with the intent of selling them for a profit?

Answers

Answer: The economy during that time period was quite bad. Properties were not selling for a lot of money, due to a bad economy, where a lot of peoplecould not afford pricey land

Explanation:

In the context of stragetic planning the streagtic goals of an orgainzation represent concrete benchmarks that managers can use to measure perfromance in each key.a) trueb) false

Answers

Answer:

a. True

Explanation:

For accomplishing the company objective, the planning plays a major role without planning the goals of the company could not able to achieve.

Also to measure the performance for each key, the benchmarks is also plays a vital role as it defines the difference between the standard performance and the actual performance

Hence, the given statement is true

If the seller permits merchandise to be returned or an allowance to be made, it is customary for the seller to issue a(n):________.

Answers

: a credit memorandum

Agent Simpson tells residents of a neighborhood minorities are moving into the neighborhood and property values are sure to plummet. Resale values will suffer, the neighborhood will deteriorate, and, if they don't sell their homes now, they will lose money. What form of illegal discrimination is Agent Simpson practicing

Answers

Answer: Blockbusting

Explanation:

Blockbusting could be defined as when an individual or someone that's into real estate tries to convince a particular set of people(mostly white) living in a neighborhood to sell their property describing to them that those property would soon depreciate in value and this promotes fear in the heart of occupants of those property. Most times the agents do this for their own gain rather than stating the obvious and it's illegal to do. Agent Simpson is practicing blockbusting kind of descrimination.

Tom elects the Life Income with 10-year Period Certain settlement option. Tom dies in year 6. The beneficiary receives payments for _______.
A. Life
B. 4 years
C. 10 years
D. 6 years

Answers

Answer:

B. 4 years

Explanation:

Based on the information given about Tom in which we were been told that he elects the Life Income with a 10 year settlement option in which Tom dies in year 6, this means that

the beneficiary receives payments for 4 years calculater as:

Life Income 10 year Period- The year it took Tom to die which is year 6 which will eventually give us 4 years.

Therefore beneficiary receives payments for 4 years.

Kimberli manages employees at Mountaintop Ski Resorts. She has noticed that one of her employees submits via the computer system the same suggestions for continuous improvement multiple times, knowing that performance is evaluated on the number of suggestions only. This problem is typical of _____ control.

Answers

Answer: bureaucratic

Explanation:

From the question, we are informed that Kimberli manages employees at Mountaintop Ski Resorts and that she has noticed that one of her employees submits via the computer system the same suggestions for continuous improvement multiple times, knowing that performance is evaluated on the number of suggestions only.

This is typically an issue that a bureaucratic setting faces due to its many layers and complexity.

A policy of insurance which indemnifies the holder for any loss sustained by reason defects in the title is known as what...? Fire Insurance Flood Insurance Liability Insurance Title Insurance

Answers

Answer:

The answer is D. Title Insurance

Explanation:

Title insurance is a form of indemnity insurance that protects the holder of the policy from a financial loss arising from title defects.

Home owners or real estate owners can purchase title insurance to prevent them from facing litigations from previous owners.

For example, the owner of a newly rented house can purchase this insurance if he is not sure of the action of the last occupant. Let's say the last occupant is owing an electricity bill which the supplier is entitled to. A new owner will not be liable to pay if it has purchased title insurance.

Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Bogues uses the equipment for 525 hours and the equipment produces 1,000 units.
Compute depreciation expense under each of the following methods. Bogues is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)
(a) Straight-line method for 2020 $enter a dollar amount
(b) Activity method (units of output) for 2020 $enter a dollar amount
(c) Activity method (working hours) for 2020 $enter a dollar amount
(d) Sum-of-the-years'-digits method for 2022 $enter a dollar amount
(e) Double-declining-balance method for 2021 $enter a dollar amount

Answers

Answer:

A. $6,250

B. $5000

C. $5250

D. $37,500

E. $49,688

Explanation:

(a)Computation of depreciation expense using the Straight-line method for 2020

Depreciation expense= ($212,000-$12,000/8×3/12)

Depreciation expense=($200,000/8×3/12)

Depreciation expense=$25,000×3/12

Depreciation expense=$6,250

(b) Computation depreciation expense using Activity method (units of output) for 2020

Depreciation expense=($212,000-$12,000/$40,000)×$1000

Depreciation expense=($200,000/$40,000)×$1,0000

Depreciation expense=5×$1,000

Depreciation expense=$5000

(c) Computation for depreciation expense using Activity method (working hours) for 2020

Depreciation expense=($212,000-$12,000/$20,000)×525 hours Depreciation expense=($200,000/$20,000)×525 hours

Depreciation expense=$10× 525 hours

Depreciation expense=$5250

(d) Computation for depreciation expense using the Sum of the years digits method for 2022

Depreciation expense=($212,000-$20,000×7/36×9/1)2+($212,000-$12,000×6/36×3/12)

Depreciation expense=($200,000×7/36×9/12)+($200,000×6/36×3/12)

Depreciation expense=$29,166 +$8,333

Depreciation expense=$37,500

(e) Computation for depreciation expense using the Double balance method for 2021

Depreciation expense=($200,000+$12000×25%×9/12)+($200,000 +$12,000×75% ×25% ×3/12)

Depreciation expense=($212,000×25%×9/12)+($212,000×75% ×25% ×3/12)

Depreciation expense=$39,750+$9,938

Depreciation expense=$49,688

Advantages and disadvantages of implementing plan where functional managers will be held responsible for cost overruns against their original estimates

Answers

Answer:

Kindly check explanation

Explanation:

Implementing plans where functional managers will be held responsible for cost overruns against their original estimate possess both advantages and disadvantages :

The advantages include:

1) Efficient use of Resources : A functional manager could be explained as the head or a person who has managerial authority over a department within a business organization. As such the functional manager will be able to monitor more effectively and take control of his unit. Holding them responsible for cost overruns will ensure that they are more cautious when it comes to resource and cost management as they will not want to be sanctioned.

11) ACCOUNTABILITY: It increases the sense of responsibility of the functional managers as they are being held fully responsible for the decisions made within their unit. This places a higher burden of showing sincerity on the managers.

The disadvantage associated with the plan is the possibility of producing low quality products resulting from the economical and cautious approach embarked upon in other to prevent cost overrun, materials used may be lesser quality than expected.

When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include:_____.a. debiting Cost of Goods Sold and crediting Accounts Receivable. b. debiting Accounts Receivable and crediting Sales. c. debiting Accounts Receivable and crediting Cost of Goods Sold. d. debiting Accounts Receivable and crediting Inventory.

Answers

Answer:

b. debiting Accounts Receivable and crediting Sales.

Explanation:

When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include debiting Accounts Receivable and crediting Sales.

A perpetual system of inventory can be defined as a method of financial accounting, which involves the updating informations about an inventory on a continuous basis (in real-time) as the sales or purchases are being made by the customers, through the use of enterprise management software applications and a digitized point-of-sale equipment.

Under a perpetual system of inventory, updates of the journal entry for cost of goods sold or received would include debiting accounts receivable and crediting sales immediately as it is being made or happening. The advantage of the perpetual system of inventory over the periodic system of inventory is that, it ensures the inventory account balance is always accurate provided there are no spoilage, theft etc.

In Accounting, to record a journal entry for a sale on account, the account receivable would be debited because it is an asset and shall be increased with debits while crediting the sales account for the amount being paid by the customer.

"If a foreign government wishes to stabilize its currency because it has been falling against the U.S. Dollar, the government would:"

Answers

what's the question? is it the quote?

An investor is analyzing a three-unit property by looking at its ability to produce future income. What would most likely be used to determine this value?

Answers

Complete/Correct Question:

An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value?

a. Effective gross income

b. Gross income multiplier

c. Gross rent multiplier

d. Potential gross income

Answer:

c, gross rent multiplier

Explanation:

Gross rent multiplier can be defined as the ratio of the price of a real estate investment to the annual income before the calculation of expenses.

It can simply be said to be the number of years it would take a property for pay for itself through rent collection.

Gross rent multiplier is very useful when deciding or trying to select properties to invest in to ensure that factors such as depreciation, periodical cost, etc affects the property/investment drastically.

in the case of the investor in the question above, gross rent multiplier will be used to determine what the future holds for the property.

Cheers

There are different aspects to income. A gross income multiplier would be the most likely be used to determine this value.

A gross income multiplier (GIM) is simply known to be a rough estimate of the value of a specific investment property.

It is often calculated by dividing the property's sale price using its gross annual rental income.  GRM is known to be very important in real estate due to the fact that has its usability and speed.

An investor analyzing a three-unit property by looking at its ability to produce future income can therefore use gross income multiplier.

Learn more about gross income multiplier from

https://brainly.com/question/9637029

A customer who is retired wants to select an investment that is liquid, marketable, and that provides regular income. The BEST choice would be to recommend:

Answers

The available options are:

A. Treasury Bills

B. Treasury Notes

C. Preferred Stock

D. Certificates of Deposit

Answer:

B. Treasury Notes

Explanation:

The interest rates on Treasury notes are considered marketable and it is paid semi-annually to the owner, hence, it is the right and smart choice for the retired customer that want liquid, marketable and regular income.

The interest rates on Treasury Bills are not paid regularly, therefore, it is not a better choice for the retired customer.

Preferred stock is considered marketable. However, in comparison with Treasury bills and Treasury Notes, it is not as marketable.

Certificates of Deposit are considered to be non-negotiable, non-marketable, therefore, it is not what the retired customer needs.

If a product or other segment of a business is generating a loss, it is erroneous to assume that the total company income will increase by eliminating the product line or other segment of the business generating the loss.

a.This statement is true.
b.This statement is true only for manufacturing companies.
c.This statement is true only for service companies.
d.This statement is false.

Answers

Answer:

a.This statement is true.

Explanation:

The loss generating segment of a business might be generating a contribution towards the firms` common fixed overheads thus, it would be erroneous  to assume that the total company income will increase by eliminating the product line or other segment. Eliminating this product line or other segment might result in loss of a contribution to cover the fixed costs.

A real estate loan where a homeowner receives monthly payments based on accumulated equity rather than a lump sum and is repaid upon the death of the owner or sale of the property is a (an)

Answers

Answer:

reverse annuity mortgage

Explanation:

The term that is being described is known as a reverse annuity mortgage. Like defined in the question, this is a loan that allows you to cash in some of your home's equity without actually needing to sell the entire real estate property and move out of your home. Instead the loan is secured against the value of your home and monthly payments are paid to the owner that asked for the loan.

Policymakers are discussing various proposals regarding how to deal with natural monopolies. Senator Huff wants to regulate natural monopolies by equating price with average total cost. Huff contends that such a policy will ensure that monopolies make every effort to reduce costs. Senator Puff wants the government to own natural monopolies. Puff argues that government-owned monopolies usually do a better job of holding down costs than privately owned monopolies. Which senator's argument is correct

Answers

Complete/Correct Question:

Policymakers are discussing various proposals regarding how to deal with natural monopolies. Senator Huff wants to regulate natural monopolies by equating price with average total cost. Huff contends that such a policy will ensure that monopolies make every effort to reduce costs. Senator Puff wants the government to own natural monopolies. Puff argues that government-owned monopolies usually do a better job of holding down costs than privately owned monopolies. Which senator's argument is correct?

a. Senator Huff

b. Senator Puff

c. both senators

d. neither senator

Answer:

D, neither senator

Explanation:

Neither senator Huff or Puff have correct arguments about dealing with natural monopolies.

Monopolies are meant to be regulated to protect consumers. This means that rather than the government owning monopolies or equating price and average cost as suggested by the two senators, the government can instead change the laws and/or lift any restrictions that will break the monopoly.

Cheers

Jake, a businessman, filed for bankruptcy and was declared insolvent by the courts. He owed $15,000 each to two creditors and $5,000 each to two others. The courts also decreed that he should sell his house worth $30,000, to pay his debts. Which of the following is legally permissible in this scenario?

a. Jake is entitled to sell his house and pay the creditors he owes the least amount of money to.
b. Jake is entitled to sell his house and pay whomsoever he chooses.
c. Jake is entitled to sell his house and pay the creditors he owes the maximum amount of money to.
d. Jake is entitled to sell his house and pay the creditors on a pro-rata basis.

Answers

Answer:

Option D is the best which state that Jake is entitled to sell his house and pay the creditors on a pro-rata basis

Explanation:

Based on the information given about Jake in which we were been told that Jake owed the amount of $15,000 each to two of his creditors and another amount of $5,000 each to two others creditors we can vividly say that Jake is entitled to sell his house which worth the amount of $30,000 and pay the creditors on a pro-rata basis by given the amount he owed to one of the creditors based on to their share of the total or whole amount .

If you’re using paid advertisements on Twitter, and want more people to see your tweets, what’s the best campaign type to use:

Answers

Answer:

The best campaign to use is the Hash Tag

Explanation:

The hashtag is a situation whereby worlds, statement or information that someone would want a wider coverage for is passed across using the hash sign. This would cause the word to start trending thereby drawing more people's attention to it. Example is #U.SElection

Rosie's has 1,300 shares outstanding at a market price per share of $10. Sandy's has 2,000 shares outstanding at a market price of $23 a share. Neither firm has any debt. Sandy's is acquiring Rosie's. The incremental value of the acquisition is $1,800. What is the value of Rosie's to Sandy's

Answers

Answer:

$14,800

Explanation:

Rosie's has 1,300 shares outstanding at a market price of $10

Sandy's had 2,000 shares outstanding at a market price of $23

The incremental value of the acquisition is $1,800

Therefore, the value of Rosie's to Sandy's can be calculated as follows

=( 1,300×$10)+$1,800

= $13,000+$1,800

=$14,800

Hence the value of Rosie's to Sandy's is $14,800

A task performed by an organization or organizational subunit in support of the organization's overall mission is referred to as a mission or Answer .

Answers

Answer:

business process

Explanation:

Business process are plans, task that are carried out by an organization or its subunits whose end result is to attain the goals of the organization. Business process are often times a repetition of certain work processes, which is subject to continuous update for effective result.

Some aspects of business process includes business support; which provides support to the business arm of a firm in terms of processing while operational process is the major business part of the business process.

It is less likely that workers, contractors, and facility owners would allow energized work if everyone involved in the decision-making process fully understood the laws, requirements, hazards, true costs, and consequences associated with energized work.

a. True
b. False

Answers

Answer: True

Explanation:

Once it's observed that everyone involved in the decision making of an energized work has an understanding of the work process it is less likely that they all will be permitted to carry out the task. This is considered this way because of safety being observed during the process of carrying out the task.

Which set of items appears on a loan estimate? 1.Inspection contingency, legal property description, interest rate 2. Interest rate, estimated monthly payment, estimated cash to close 3.Credit score, inspection contingency, prepayment penalty 4. Recommended repairs, estimated cash to close, private sewer and well disclosure

Answers

Answer:

2. Interest rate, estimated monthly payment, estimated cash to close

Explanation:

Loan Estimate is simply just a document containing all the relevant details you have requested about a mortgage. The lender wishes to clear all terms and conditions associated with the loan by providing a Loan prediction. Many of its contents are Interest Rate, estimated monthly bill, expected cash to close.

Therefore the correct answer is 2.

The CEO of Logiworks asked the human resource manager, April, to propose an approach to incentive pay. April proposes that the company create a gainsharing plan. What action(s) by the company will best increase the likelihood that gainsharing will succeed

Answers

Answer: sharing data about costs and setting up time for employees to interact

Explanation:

From the question, we are informed that the CEO of Logiworks asked the human resource manager, April, to propose an approach to incentive pay and that April proposes that the company create a gainsharing plan.

Based on the above scenario, the action by the company that will best increase the likelihood that gainsharing will succeed is to share data about costs and setting up time for employees to interact.

A large corporation that has its headquarters in Boston, manufacturing plants in Indonesia, and regional offices and retail stores on four continents, including Latin America is called a:

Answers

Multinational company

As the owner of a small business, Zebadiah is deciding what materials he should use to make the softest teddy bears on the market. Zebadiah is solving which key question of economics?

Answers

Explanation:

Based on oligopoly market forms, Zebadiah is using the idea of interdependence to take the right decision for his teddy products.

"An investor has sold short stock worth $45,000 in a margin account, depositing the margin requirement. If the market value of the stock falls to $30,000, what is the Selling Power in the account?"

Answers

Answer:

$45,000

Explanation:

Credits = $45,000

Short Market Value = $45,000

Equity % = Credits - Short Market Value

=> $45,000 - $45,000 = 0℅

Margin = $22,500 = 50%

Therefore, Total Credits = $45,000 + $22,500 = $67,500

If the market value falls to $30,000, the account will show:

Credits - Short Market Value = Equity %

$67,500 - $30,000 = $37,500 = 125% of short market value

However, in order to support a $30,000 stock position at 50% margin,

We have $30,000 / 2= $15,000.

Hence, given that the account has $37,500 of equity, the excess is:

$37,500 - $15,000 = $22,500 which may be borrowed and is the SMA amount.

Therefore, with $22,500 of SMA, double of the amount may be purchased or sold short in other marginable securities.

$22,500 * 2= $45,000.

The final answer is $45,000


God will remain faithful only as long as man believes.


True False

Answers

Answer:

true

Explanation:

//

"The type of retirement plan that gives the employer flexibility as to the amount contributed annually is a(n):"

Answers

Answer:

SEP-IRA

Explanation:

It's a retirement savings plan made by employers including people that are self-employed for the benefit of their employees and themselves. The employer may make tax-deducible contributions for certain employees towards their SEP-IRA    

An organization focusing on the law firm segment purchases personal computers from a company, bundles together special software designed for client management and law firm accounting, and then sells the package as a turnkey system to customers. This organization is an example of:

Answers

Answer:

Value-added Reseller

Explanation:

A value-added reseller can be defined as a company that specialises in adding features or services to an already existing product before selling to consumers.  

The value-added reseller company usually sells the feature-added products as either an integrated product or a total turn-key solution.

N.B: A turn-key solution is an end-to-end solution built for consumers to be able to infuse in their businesses straight up.

Cheers.

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