calculate mpc when a change in investment spending of $40 million leads to an increase in real gdp by $160 million

Answers

Answer 1

Answer:

mpc is equal to 0.75

Explanation:

This can be calculated as follows:

Increase in real gdp = multiplier * change in investment spending ............ (1)

Where;

Increase in real gdp = $160 million

multiplier = ?

change in investment spending = $40 million

By suppressing the million, substitute the values into equation (1) and solve for multiplier, we have:

$160 = mpc * $40

multiplier = $160 / $40 = 4

The multiplier is given as follows:

multiplier = 1 / (1 - mpc) .................... (2)

Substituting multiplier = 4 into equation (2), and solve for mpc, we have:

4 = 1 / (1 - mpc)

4(1 - mpc) = 1

4 - 4mpc = 1

4 - 1 = 4mpc

3 = 4mpc

mpc = 3 / 4

mpc = 0.75

Therefore, marginal propensity to consume (mpc) is equal to 0.75.


Related Questions

Borrowers who believe they will be in a home for only a short period of time would be good prospects for a/an:

Answers

Answer:

Hard money loan

Explanation:

Options "A) no interest loan, B) adjustable-rate loan, C) Convertible loan, D) Hard money Loan"

Hard money loan is a way to raise money quickly, usually taken out for a short time but at a higher cost and lower LTV ratio. The terms of hard money loans are often negotiated between the lender and the borrower. This type of loans use the property of the borrower as collateral and does not rely on the creditworthiness of the borrower.

If marginal business tax rates are decreased, how will aggregate supply and employment change in the long run

Answers

Answer:

If corporate tax rates decrease, this should shift the aggregate supply curve tot he right, increasing total quantity supplied and price level. An increase in the quantity supplied should eventually make that producers hire more workers, therefore, the unemployment rate should decrease.

Explanation:

for product costs to become expenses under the matching principle, the units to which they attach must be

Answers

Answer: Sold

Explanation:

The Matching principle in accounting states that for an expense to be recognized in a period, the revenue to which that expense is attached should be earned in that same period as well.

For product costs to be recognized as expenses therefore, the products they are attached to must yield revenue by being sold.

If Malaland exports $51 billion in goods to Bursia, and Malaland imports $34 billion of goods from Bursia , what is the goods trade balance for Malaland

Answers

Answer:

$17 billion

Explanation:

Calculation for what is the goods trade balance for Malaland

Using this formula

Goods trade balance=Exports goods- Imports goods

Let plug in the formula

Goods trade balance=$51 billion- $34 billion

Goods trade balance=$17 billion

Therefore the goods trade balance for Malaland will be $17 billion

Assume you could either open a lemonade stand near a college campus and sell 80 cups of lemonade for $.50 per cup in one day or open a stand selling brownies and sell 50 brownies in one day for $1 each. In terms of dollars, what would be your opportunity cost of selling lemonade for one day

Answers

Answer:

$50

Explanation:

Situation I On January 1, 2020, Bramble, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,446,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2020, to finance the construction cost, Bramble borrowed $4,446,000 payable in 10 annual installments of $444,600, plus interest at the rate of 10%. During 2020, Bramble made deposit and progress payments totaling $1,667,250 under the contract; the weighted-average amount of accumulated expenditures was $889,200 for the year. The excess borrowed funds were invested in short-term securities, from which Bramble realized investment income of $269,200. What amount should Bramble report as capitalized interest at December 31, 2020

Answers

Answer:

$88,920  

Explanation:

capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920

Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.  

Drag each tile to the correct box.
Match each characteristic of a successful blog to the correct description.
creates the need for people to continue reading
proves to readers thazine information is trustworthy
clearly expresses an idea for readers to understand easily
credibility
conciseness
regular schedule

Answers

Answer:

1. Regular schedule.

2. Credibility.

3. Conciseness.

Explanation:

A blog can be defined as an informative or discussion-based website that is updated regularly and published over the internet. The informations that are posted on a blog are usually done chronologically.

Basically, the characteristics of a successful blog are;

1. Regular schedule: creates the need for people to continue reading. Thus, informations posted on blogs are to be updated and made available to the audience at regular intervals.

2. Credibility: proves to readers that this information is trustworthy. You should ensure you always post information that are factual, credible and trustworthy.

3. Conciseness: clearly expresses an idea for readers to understand easily. You should write in a simple and straightforward manner without the use of ambiguous or complex words.

P&G sells cosmetics, laundry detergent, and products like Pringles to the ________ market by establishing strong brand images, developing superior products, ensuring their availability, and backing them with engaging communications and reliable performance"

Answers

Answer:

Consumer

Explanation:

A consumer market is simply defined as all the individuals and households who gets or purchase and acquire goods and services.

A Consumer is simply an individual who see, knows or is able to identifies a need or desire, thereafter buy the product and then disposes of the product during the three stages of the consumption process.

What amount is recorded for a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance

Answers

Answer:

The fair value of the asset given up, with a gain or loss recognized.

Explanation:

In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.

Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.

The amount recorded for a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance is the fair value of the asset given up, with a gain or loss recognized.

Additionally, the par value of an asset such as a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid.

A bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

inventory g Ronald Homes purchased land for development for $2,500,000. The land will be parceled into lots and sold for vacation homes as follows: 10 lots (Type A) to sell for $100,000 each; 15 lots (Type B) to sell for $70,000 each; and 20 lots (Type C) to sell for $50,000 each. At what amount should Ronald Homes record the Type B lots

Answers

Answer:

Ronald Homes

The amount at which Ronald Homes should record Type B lots is $860,656 while each should be recorded at $57,377.

Explanation:

a) Data and Calculations:

Cost of land for development = $2,500,000

Land parceled into lots as follows:

Type A (10 lots) to sell for $100,000 each = $1,000,000

Type B (15 lots) to sell for $70,000 each =     1,050,000

Type C (20 lots) to sell for $50,000 each =   1,000,000

Total sales value =                                         $3,050,000

Type A lots to be recorded at $1,000,000/$3,050,000 * $2,500,000

= $819,672

Type B lots to be recorded at: $1,050,000/$3,050,000 * $2,500,000

= $860,656

Type C lots to be recorded at $1,000,000/$3,050,000 * $2,500,000

= $819,672

the Quality Control element most directly related to assuring that the company has sufficient personnel with needed competence, capabilities, and commitment is

Answers

Answer:

Human resources (HR).

Explanation:

The Quality Control element most directly related to assuring that the company has sufficient personnel with needed competence, capabilities, and commitment is Human resources (HR).

Human resources (HR) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Hence, human resources managers are saddled with the responsibility of managing and improving the welfare and working conditions of the employees working in an organization.

What is the standard deviation of returns of a portfolio that produced returns of 10%, 15%, 25%, and 30%

Answers

35404550556066707780

Suppose the demand for apples becomes more elastic. All else equal, this means that the same change in price will result in

Answers

Answer:

a greater change in quantity demanded

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

n the industry and the community, Tri-State is known for its low-cost business strategy, but also as a company that is generous to its employees. After 100 years of successful operation, it now finds itself with a respected brand and a market share leader. Tri-State also prides itself on helping with school lunch programs in disadvantaged school districts. In the past, it has helped organizations like the Salvation Army and Red Cross when natural disasters occur across the United States, but this is on an as-needed basis. How would you classify Tri-State's social actions

Answers

Answer:

Tri-State's social actions would be classified as:

Corporate Social Responsibility.

Explanation:

Corporate Social Responsibility involves alignment or integration of the social and environmental concerns with the entity's operations and economic responsibilities for sustainable organizational development.  It enables a business entity to remain relevant and accountable.  Companies like Tri-State are increasingly trying to make a difference in their environments while building positive brand image by giving back to their community, taking active part in philanthrope, and providing positive social values.

Compare the development of clustered rural settlements with dispersed rural settlements. In your paragraph, consider each of the following:

explanation or description of each advantages or purpose of such a community one specific example of its use.

Answers

Answer:

Dispersed settlement are simplex and uncommon while the compacted are common and densely populated.

Explanation:

The dispersed rural settlements are called scattered settlements, they are spread out in the entire area. The clustered settlements are nucleated or compact in nature and are closely build up houses.  The dispersed settlements are found along the tree lines, rivers, ponds and are sparsely populated. They are small groups of buildings ad are popular in the mid-west US. The clustered settlements are closely knitted and represent geometric patterns such as rectangular, radial, and linear. They are densely populated.

c. Suppose that the total amount to be paid under the contract with the city is estimated at $14,000 but may be adjusted to $12,000 next year during the review of the city budget. What amount from the contract, if any, should Brown Thumb recognize as income this year

Answers

Answer:

$14,000

Explanation:

The amount that should reported as the income for this year is $14,000 as if he takes the other amount so he wants to adjust the amount in order to reconcile the real amount of income

So as per the given situation this year amount i.e. $14,000 would be considered and the other amount i.e. $12,000 would be ignored

SO the same is to be relevant

The management accountant should be aware that the software system(s) that should be used to prepare job cost reports is:

Answers

Answer:

Chosen from a variety of software systems available, often designed specifically for a particular industry.

Explanation:

Managerial accounting also known as cost accounting is an accounting technique focused on identification, measurement, analysis, interpretation, and communication of financial information to managers for planning, better decisions making and pursuit of the organization's goals.

Managerial accounting typically comprises of both non-monetary and monetary informations about an organization.

Hence, the management accountant should be aware that the software system(s) that should be used to prepare job cost reports is chosen from a variety of software systems available, often designed specifically for a particular industry.

This ultimately implies that, the software application or program that is typically used in the accounting field is designed specifically for that particular industry and cannot be used by another industry such as medicine, engineering, agriculture etc.

which factor plays the biggest role in motivating economic decisions in a traditional economy?

Answers

Answer:

These are the answer choices for the question:

A. Cooperation between governments and citizens

B. Commitment to maintaining long-standing customs

C. Corruption in the leadership of powerful groups

D. Competition between different businesses

And this is the correct answer choice:

B. Commitment to maintaining long-standing customs

Explanation:

Traditional economies are economies that have not yet industrialized, that tend to be small-scale, and that give great weight to traditions when taking economic decisions, precisely.

Examples of traditional economies can be seen in nomadic, semi-nomadic, and pastoralist peoples, who often lack enough economic complexity to become large populations with complex poltiical and economic institutions.

In these societies, economic decisions may be guided more by the insight of a leader, than by economic rationality per se, as long as the bare minimum needs for survival are met beforehand.

There are factors plays the biggest role in motivating economy decisions in a market economy. The factor is Competition between different businesses.

A traditional economy is known to be a type of economic system where local or traditions, customs, and beliefs help defines the goods and services the economy creates, and also rule and way of their distribution.

Countries often this type of economic system and they are said to be rural and farm-based. Examples includes nomadic, semi-nomadic, and pastoralist etc.

See answer choices below

A. Cooperation between governments and citizens

B. Commitment to maintaining long-standing customs

C. Corruption in the leadership of powerful groups

D. Competition between different businesses

Learn more about Economy from

https://brainly.com/question/1169360

g explain which types of organizations (if any) will traditional HRM fit most and which types of organizations (if any) will strategic HRM fit most

Answers

Answer:

HR Function refers to areas such as recruitment, selection, recruitment and retention, performance evaluation, promotional preparing, and reimbursement managerial staff.

Explanation:

Throughout traditional HRM every one of these operations has been associated with capacity building and therefore are constrained even within the HR manager. Those other operations are not focused on an organization’s strategy.Traditional HRM is therefore not focused on effective organizational culture, while strategy Implementation focuses on its philosophy.

Uncollectible accounts are determined by the​ percent-of-sales method to be ​% of credit sales. How much is​ uncollectible-account expense for ​?

Answers

Answer:

$1,160

Explanation:

Hie, I have attached the full question as an image below.

The firm usually makes provision for certain amounts so as not to overstate their profits. This expected as it is prudent than reporting profits that might never occur. Provisions of Uncollectible accounts are examples of such amounts.

An increase in Uncollectible amount compared to the opening balance is treated as an Expense in the Income Statement whilst a decrease is treated as an Income.

For this question, we are told that Uncollectible accounts are determined by the​ percent-of-sales method to be ​4% of credit sales. Thus calculation of the 2012 uncollectible-account expense is as follows :

Credit Sales - 2012 = $44,000

Beginning Balance in allowances = $600

Therefore,

Uncollectable Amount (2012) = Credit Sales x percent-of-sales

                                                 = $44,000 x 4%

                                                 = $1,760

The Uncollectable amount has increased by $1,160 ($1,760 - $600)

Conclusion :

The collectible-account expense for 2012 is $1,160

 

What nominal return was received by an investor when inflation averaged 3.46% and the real rate of return was 2.5%

Answers

Answer:

Nominal rate of return= 0.0596 = 5.96%

Explanation:

Giving the following information:

Inflation averaged 3.46%

The real rate of return was 2.5%

To calculate the nominal rate of return, we need to use the following formula:

Real rate of return= nominal rate of return - inflation rate

Nominal rate of return= real rate of retunr + infaltion rate

Nominal rate of return= 0.0346 + 0.025

Nominal rate of return= 0.0596 = 5.96%

Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in 2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006

Answers

Answer:

Dividends paid to preferred and common stockholders in 2006 will be :

Preferred stockholders get $20,000

Common stockholders get $0

Explanation:

Hie , I have attached the full question as an image below.

Preferred Stockholders received their dividends first before the common stockholders do. This is because the Preferred Equity have first preference when it comes to payments of dividends.

Also, when the dividends are cumulative, it means that the previous amounts of dividends not paid are payable in future when the distribution is made. Preference dividends are payable as a fixed amount of stocks outstanding during the reporting period.

That said, the amounts of dividends to be paid to preferred and common stockholders in 2006 can be calculated as follows :

2004

Dividends Declared = $0

Preference dividends Payable = ($100,000 + $250,000) × 6 % = $21,000

Paid to Common Shareholders  = $ 0

2005

Dividends Declared = $4,000

Paid to Preference Shareholders = $4,000

Paid to Common Shareholders  = $ 0

Payable to Preference Shareholders = $17,000 (2004) + $21,000 (2005) = $38,000

2006

Dividends Declared = $20,000

Paid to Preference Shareholders = $20,000

Paid to Common Shareholders  = $ 0

Payable to Preference Shareholders =  $18,000 (2005) + $21,000 (2006) = $39,000

Strengths and weaknesses Group of answer choices should be kept confidential. are areas of high and low capability. relate to the external environment. are an outcome of strategic implementation.

Answers

Answer: are areas of high and low capability.

Explanation:

Strength and weakness are areas of high and low capability. Some examples of the strengths that an organization has include large market share, strong employee attitudes, economies of scale, hug integrity etc. These gives an organization an edge over its rivals.

The weakness of an organization makes such organization lag behind its rivals.

The Lion Incorporated is currently going bankrupt and is a subsidiary of the Dorothy Ltd. The CFO of the Dorothy Ltd is preparing consolidating statements for a listing of the company on the French stock exchange. She does not include in consolidation the Lion Company, saying Lion does not have and is not in the process of having debt or equity instruments that are publically traded. The CFO is:

Answers

Answer: In compliance with the IFRS

Explanation:

Based on the information given in the question, we can say that the CFO is in compliance with the IFRS. IFRS Standards are typically used by accountable entities. We should note that even though IFRS Standards are normally permitted, it is not required for every accountable entities.

In the scenario in the question, we are informed that the CFO does not include in consolidation the Lion Company, saying Lion does not have and is not in the process of having debt or equity instruments that are publically traded. In this case, the CFO is in compliance with the IFRS.

The Impala Company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on 1/1/16. Interest is paid on June 30 and December 31. The bonds sold for $4,901,036. Using straight-line amortization, compute the 12/31/18 carrying value of the bonds.

Answers

Answer:

carrying value at the end of 2018 = $4,915,880.60

Explanation:

the journal entry to record the sales of the bonds

Dr Cash 4,901,036

Dr Discount on bonds payable 98,964

    Cr Bonds payable 5,000,000

Amortization of bond discount per year = $98,964 / 20 years = $4,948.20

Accumulated amortization for the first 3 years (2016, 2017, 2018) = $14,844.60

carrying value at the end of 2018 = $4,901,036 + $14,844.60 = $4,915,880.60

"Tom, at Bode Corporation we align our individual goals with the company's goals.
That is, as managers, we use
to drive ourselves and our employees
to accomplish key goals that are linked with the company's success," said Tom's new
CEO.
remuneration
contingency management
quantitative management
management by objective
time-and-motion studies

Answers

Contingency Management

(True) or (False)? Accumulated depreciation is recorded as a contra expense account on the income statement, and the depreciation expense is recorded as an asset on the balance sheet.

Answers

Answer:

false

Explanation:

Depreciation is the reduction in the value of an asset. It is recorded as an expense on the income statement.

Accumulated depreciation is the sum of depreciation over a time period. It is recorded as a contra asset on the balance sheet

Your roommate asks for a loan, offering to make weekly payments of $25 for two years. If the appropriate interest rate is 8.25% APR, compounded weekly, how much would you be willing to lend her today

Answers

Answer:

You should be willing to lend your roommate the sum of $2,395.08 today.

Explanation:

a) Data and Calculations:

Weekly loan repayment = $25

Period of loan = 2 years

Interest rate = 8.25% APR, compounded weekly

b) Using online finance calculator:

FV (Future Value) $2,824.37

PV (Present Value) $2,395.08

N (Number of Periods) 104.000

I/Y (Interest Rate) 0.159%

PMT (Periodic Payment) $25.00

Starting Investment $0.00

Total Principal $2,600.00

Total Interest $224.37

The shareholders' equity of Green Corporation includes $398,000 of $1 par common stock and $580,000 par of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $68,000 in 2018 after paying $38,000 cash dividends in each of 2017 and 2016. What is the amount of dividends common shareholders will receive in 2018

Answers

Answer:

$22,200

Explanation:

The computation of the dividend amount made to the common shareholders is shown below:

Arrear in Preferred Stock Dividend is

= $580,000 × 7% × 2 - $38,000 - $38,000

= $5,200

Now

Current Preferred Stock Dividend is

= $580,000 × 7%

= $40,600

Now

The amount of dividends made to the common shareholders is

= $68,000 - $40,600 - $5,200

= $22,200

Ridge Company issues $10,000,000 10-year, 9% bonds on 3/1/17 at 97 plus accrued interest. The bonds are dated January 1, 2010, and pay interest on June 30 and December 31; original issue date was 1/1/17. What is the total cash received on 3/1/17

Answers

Answer:

$9,850,000

Explanation:

Calculation for What is the total cash received on 3/1/17

Total cash received on 3/1/17=$10,000,000 × .97) + ([9%*$10,000,000) × 2/12]

Total cash received on 3/1/17=$10,000,000 × .97) + ($900,000 × 2/12)

Total cash received on 3/1/17=$9,700,000+$150,000

Total cash received on 3/1/17 = $9,850,000

Therefore the total cash received on 3/1/17 is $9,850,000

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