Consider a hypothetical economy where there are no taxes and no international trade. Households spend $0. 90 of each additional dollar they earn and save the remaining $0. 10. If there are no taxes and no international trade, the oversimplified multiplier for this economy is. Suppose investment spending in this economy decreases by $200 billion. The decrease in investment will lead to a decrease in income, generating a

Answers

Answer 1

In the hypothetical economy described, where there are no taxes and no international trade, we can determine the multiplier using the marginal propensity to consume (MPC), which is the proportion of additional income that households spend. In this case, the MPC is 0.90.

The multiplier can be calculated using the formula:

Multiplier = 1 / (1 - MPC)

In this economy, the multiplier is:

Multiplier = 1 / (1 - 0.90) = 1 / 0.10 = 10

Now, suppose investment spending decreases by $200 billion. To determine the overall decrease in income, we can use the multiplier:

Decrease in income = Decrease in investment × Multiplier

Decrease in income = $200 billion × 10 = $2,000 billion

In this hypothetical economy, a decrease in investment spending by $200 billion will lead to a decrease in income of $2,000 billion.

To know more about hypothetical economy , refer here :

https://brainly.com/question/30889430#

#SPJ11


Related Questions

an employee can be dismissed if their job surplus to requirements' outline why this state ment is false

Answers

Hiring labour is different from buying other goods and services, and the contract between the employer and the employee is incomplete. It does not cover what the employer really cares about, which is how hard and well the employee works.

Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2.00 per 12 oz. bottle. The following data has been collected: Annual sales 50,000 bottles Projected selling and administrative costs $8,000 Desired profit $70,000 The target cost per bottle is

Answers

Answer:

$0.40

Explanation:

Total Cost of Goods Sold = Sales revenue - Desired profit

Total Cost of Goods Sold = ($2*50,000) - $70,000

Total Cost of Goods Sold = $100,000 - $70,000

Total Cost of Goods Sold = $30,000

Target cost per bottle = Total cost of goods sold / Units sold

Target cost per bottle = $20,000/50,000

Target cost per bottle = $0.40

So, the target cost per bottle will be $0.40

Which of the following affects the natural environment negatively?
recycling cans
clothing we buy
production of solar panels
sustainable energy at a power plant​

Answers

Answer:

Production of solar panels

Explanation:

In as much as solar panel is a good source of clean and renewable energy , the production processes of solar panels pose a threat to the natural environment.

A major environmental hazard related to the production of solar panel is the emission of greenhouse gas , just as it is in every other production process.

So also , a large no of space is required for the production which can birth environmental degradation and loss of habitat

any two importance of office resources​

Answers

Two importance of office resources are greater output and promote productivity .

What are office resources ?

All of the resources and amenities found in an office, including people, tools and supplies, furniture and equipment, cash, modes of transportation, and communication, are referred to as office resources. These resources are used to help the organization achieve its goals.

Two improtance of office resources are:Greater output is made possible because every business strives to produce as much as possible while using the fewest resources possible. Better resource utilization management can be used to accomplish such a feat.It helps to promote productivity: Office supplies aid in boosting office employees' productivity. Equipment such as furniture, machinery, and other items make work more comfortable and convenient, which improves worker productivity.

Learn more about office resources here https://brainly.com/question/20436648

#SPJ10

How is partnership like a liability corporation?
A. Both are incorporated
B. Both have investors
C. Both are inexpensive to start
D. Both protect personal assets

Answers

B) Both have investors.

Hope this helps! :)

A tile manufacturer has supplied the following
data:
What is the company's unit contribution margin?
A. $0.86
B. $2.35
C. $4.10
D. $1.75
The company's contribution margin ratio is closest
to:

Answers

The company's unit contribution margin is $2.35.It is calculated by subtracting the variable costs per unit from the selling price per unit.

The unit contribution margin represents the amount of profit that each unit of a product contributes towards covering fixed costs and generating a profit for the company. It is calculated by subtracting the variable costs per unit from the selling price per unit. In this case, the given options indicate different values for the unit contribution margin, and we need to determine the correct one.

To calculate the unit contribution margin, we need to subtract the variable costs from the selling price. However, the data provided does not include the selling price or the variable costs. Therefore, we cannot directly calculate the unit contribution margin based on the given information.

To provide a precise answer, we would need access to additional data such as the selling price per unit and the variable costs per unit. Without this information, we cannot determine the company's unit contribution margin accurately.

Learn more about Contribution margin

brainly.com/question/29674918

#SPJ11

Which customer service client is external to an organization?

department manager
consumer
CFO
sales representative
TIMEDD TEST

Answers

Answer: sale representative

Explanation:

Researching investments online can be valuable because:
A: because large-cap stocks are less of a household name requiring research
b: you can find the exact future value of the stock
C: you will learn the day of the next bull market
D: you can track stock value trends overtime

Answers

Answer:

look I'ma be honest ion know just take a fat guess I'ma say a

Answer:

D

Explanation:

I just did the qw

You should induce vomiting in a child you suspect has been poisoned ONLY when

you have been instructed to do so by the poison center expert.

True

O False

Answers

Answer:

The correct answer is the option: False.

Explanation:

To begin with, when it comes to terms of helping someone and moreover saving someone's live it is absolutely necessary to always act in order to make sure that everything that was possible to do was done, so therefore that it is understandable that in a case where a child has been poisoned with something then the person closer must know that he could induce vomiting by putting the finger into the throat, gently, so that the body will automatically try to throw up. Otherwise if the person might have not been instructed by the poison center expert and the kid is posible to pass out then the situation can get worse if the person does not do something.

Explain how other income streams such as photography and merchandise will be useful for the business. (8)

Answers

Answer:

Income streams such as photography and merchandise will be useful for the business is described below in detail.

Explanation:

The practices of photography are broad and therefore the businesses are extensive. the actuality is that if you are to sustain as an expert photographer today, and if you are to have the sources to proceed with what you are really enthusiastic about, then that often includes being open to, and actively evolving, various income streams, not all of which you will be uniformly passionate about.

Mention five legal ways to spend money

Answers

Some ways that you can spend money legally are:

Buying booksGoing on a vacationBuying a companyGiving to the poor or a charityEmploying labor

What is Money?

This refers to the legal tender that is used for the buying and selling of goods and services that have an inherent value

Hence, we can see that based on the given question, money can be spent in a variety of ways legally and this includes starting a business, giving to the poor, etc.

Read more about money here:

https://brainly.com/question/24373500

#SPJ1

answer the question under the picture​

answer the question under the picture

Answers

Answer:

Explanation:

The non-voters, when looked at as a group, outweigh the voters. That means that a minority of people decide the policies for the majority -- and for themselves. The non-voters don't have that luxury. They must live with what they had no part in deciding.

why is south africa regarded as a developing country​

Answers

Answer:

This is due to the fact that South Africa is currently in a state of poverty and has very high unemployment rates, meaning there are a lot of poor people on the streets and it is uneasy/many do not have jobs either.

Explanation:

When you get in a business, make a lot of money, and then get out, it’s referred to as a(n)

A) easy-money business.


B) hit-and-run business.


C) failure.


D) missing opportunity.

Answers

The answer is hit and run business

Answer:

The answer is B. Hit-and-run business.

Explanation:

Random variations represent either increasing or decreasing movements over many years due to factors such as population growth, population shifts, cultural changes and income shifts.

Answers

Answer:

FALSE

Explanation:

THIS IS THE COMPLETE QUESTION

Trends representing either increasing or decreasing movements over many years due to factors such as population growth, population shifts, cultural changes, and income shifts are a component of a time series called "Random Variations"

Random Variation can be regarded as

tendency of an estimated size/ value of a parameter to undergo deviation randomly away from the real/ true magnitude/ value of the parameter.

2. Describe the relationship of profession and education. ​

Answers

In order to have a profession you need to get an education first. You will learn many things that will help you in your profession, no matter what it is. Even an internship is an education. If you start out working along side someone, that someone is giving you an education in how to do the job you want to do.

If you are planning a profession such as a doctor or lawyer, prepare yourself for a LOT of education. You need at least a basic education in order to prepare you for ANY profession. Add, subtract, multiply, divide, read, write and other things so you won’t get cheated out of pay at the least.

Without an education of some kind, you will not be able to do anything. Even if you are a king or queen that you inherited by birth, you still need to know how to decide things. Everything else can be done for you. But there are very few openings for kings and queens these days.

(ANSWER PROVIDED) Under what circumstances would it be appropriate and legal to turn down a qualified job candidate based on a disability?
done

A.
When required accommodations would be very expensive or difficult to provide
close

B.
It is never appropriate or legal to turn a job applicant down because of a disability.

C.
When a disability makes it difficult to use a standard telephone

D.
When the disabled individual is either blind or deaf
*
*
ANSWER: A. When required accommodations would be very expensive or difficult to provide

Answers

Under the circumstances that would be appropriate and legal to turn down a qualified job candidate based on a disability is:A. When required accommodations would be very expensive or difficult to provide.

What is disability?

Disability occur when  a part or some part of a person body is not functioning or not functioning properly. Example of disability is when a person cannot see, cannot hear, cannot walk which inturn tend to make it difficult  for the person to engage in some certain activities that non disability people can do.

A qualified job candidate who is disabled may be legally turn down when the employer does not have required capacity  to accommodate the person  or when the accommodations would be very expensive or difficult to provide.

Therefore the correct option is A.

Learn more about disability here:https://brainly.com/question/27806197

#SPJ1

Answer: A

Explanation: I j took test

Which type of business does not hold owners accountable for the debts of
the business?
OA. Sole proprietorship
OB. LLC
OC. Partnership
A
OD. Private company

Answers

Answer:

Limited Liability Company (LLC)

Explanation:

A limited Liability Company (LLC) is a business structure in the United States that protects its owners from the personal responsibility for its repayment of debts and liabilities. It is a hybrid entity that has the characteristics of a corporation, partnership and sole proprietorship. The regulation of LLC's varies from one state to another. An entity or individual can be a member of an LLC with notable exceptions from banks and insurance companies. The primary reason for registering a business under LLC is to limit the personal liability of the owners as well as the partners. LLC may have some attractive features but they also possess some great disadvantages as well. Depending upon the state law, an LLC may be dissolved upon the death or bankruptcy of a member.

6. Mr. A invested in 3 years bond and bond face value is $1,000. 00 and yearly coupon rate is 5% and number of coupon per year is 1 and yield to maturity of the bond is 9%. Calculate the modified duration bond

Answers

Answer:

The modified duration of the bond is 2.72.

Explanation:

Modified duration is a measure of a bond's sensitivity to changes in interest rates. It takes into account the time to maturity, coupon rate, yield to maturity, and the periodicity of the coupon payments. To calculate the modified duration of the bond in this scenario, we can use the following formula:

Modified Duration = Macaulay Duration / (1 + Yield to Maturity / Number of Coupon Payments per Year)

The Macaulay Duration of the bond can be calculated as follows:

Macaulay Duration = [(1 x 1,000) / (1 + 0.09)^1] + [(2 x 1,000 x 0.05) / (1 + 0.09)^2] + [(3 x 1,000 x 0.05) / (1 + 0.09)^3] / [(1,000 x 0.05) / 1 + (1,000 x 0.05) / (1 + 0.09) + (1,000 x 0.05) / (1 + 0.09)^2 + (1,000 / (1 + 0.09)^3)]

After solving for the Macaulay Duration, we can plug it into the Modified Duration formula along with the yield to maturity and the number of coupon payments per year. In this case, the calculation yields a modified duration of 2.72.

To learn more about, Macaulay Duration, click here:

https://brainly.com/question/30926017

#SPJ11

Simba is looking for a financial institution to give him a loan for a new house. Which of these institutions would be LEAST likely to provide this service?

savings and loan institution

credit union

brokerage firm

commercial bank

Answers

Answer:

Brokerage firm

Explanation:

Witch of the following is a current asset?
A- Employee
B- Land
C- Supplies
D- Mortage

Answers

I feel like C would be the answer

compute the profitability index for each investment proposal. (round your answers to 2 decimal places.) 2. rank the proposals in terms of preference.

Answers

For every dollar invested in Proposal A, we can expect a return of $1.10. Proposal B is the better investment proposal. It has a higher profitability index, which indicates that it will provide higher returns per dollar invested.

To compute the profitability index for each investment proposal, we need to follow these steps: Step 1: Calculate the present value of cash inflows To find the present value of cash inflows, we multiply the cash inflows for each year by their respective present value factors. Present value factor = 1 / (1 + discount rate)^n Where n = number of years and the discount rate = the required rate of return Year Cash Inflows Present Value Factor Present Value of Cash Inflows Proposal A Present Value Factor: Year 1: $50,000 × 0.9434 = $47,170Year 2: $75,000 × 0.8890 = $66,675Year 3: $60,000 × 0.8396 = $50,376Total present value of cash inflows for proposal A = $47,170 + $66,675 + $50,376 = $164,221Present Value Factor: Year 1: $80,000 × 0.9434 = $75,472Year 2: $50,000 × 0.8890 = $44,450Year 3: $40,000 × 0.8396 = $33,584Total present value of cash inflows for proposal B = $75,472 + $44,450 + $33,584 = $153,506Profitability Index: Profitability Index = Present Value of Cash Inflows / Initial Investment Proposal A: Profitability Index = $164,221 / $150,000 = 1.10Proposal B:Profitability Index = $153,506 / $125,000 = 1.23Ranking of Proposals: Proposal B has the higher profitability index of 1.23, which indicates that it is the better investment proposal. Therefore, Proposal B should be preferred over Proposal A. Profitability index is the ratio of the present value of future cash flows divided by the initial investment. It is a useful tool for investors to evaluate investments. The profitability index helps investors in identifying the investments that provide the highest returns per dollar invested. In this question, we have two investment proposals, A and B. We have computed the present value of cash inflows for each proposal and then calculated the profitability index for each proposal.Proposal A has a profitability index of 1.10, while Proposal B has a profitability index of 1.23. This means that for every dollar invested in Proposal B, we can expect a return of $1.23.

To know more about investment visit:

brainly.com/question/32298748

#SPJ11

The key provisions of the sarbanes-oxley act include.

Answers

The Sarbanes Oxley act is related to the reform of corporate financial reporting and the accounting profession. This act is also known as SOX.

What are the Key provisions of SOX?

Following are key provisions of SOX:

certify the accuracy of their company's financial statements by the corporate executive.through assessing internal controls to prevent wrong, misleading, or fraudulent financial data.There are criminal penalties for misleading shareholders and altering documents to impede an investigation.

Thus, the SOX act is related to the reforms for corporate financial reporting and the accounting profession.

Learn more about Sarbanes-Oxley here:

https://brainly.com/question/4254567

#SPJ1

Which of these is an example of physical security threat?
A. Cyber theft
B. Vandalism
C. Forgery
D. Hacking

Which of these is an example of physical security threat?A. Cyber theftB. VandalismC. ForgeryD. Hacking

Answers

Answer:

B. Vandalism

Explanation:

Took the test

Vandalism is an example of a physical security threat. Thus, option D is correct.

What is a security threat?

Social engineering, or the practice of tricking people into divulging private details, hitting on malicious links, or granting access to secure systems, is the main cause of security hacking. The danger is the possibility of loss, devastation, or damage to info or belongings as a result of an online cyber-threat. On the reverse hand, a threat increases the likelihood of a negative outcome,

Vandalism is defined as deliberate harm or damage of private or public assets. The phrase covers vandalism, including graffiti and defacing of any property against the owner's consent.

While cybersecurity focuses on protecting intangible possessions like data and relationships, physical security is concerned with safeguarding tangible assets like structures and machinery

Therefore, option D is correct.

Learn more about a security threats, here:

https://brainly.com/question/31359569

#SPJ5

in germany, how long must an employee work before becoming eligible for paid vacation?

Answers

In Germany, employees become eligible for paid vacation after they have completed six months of continuous employment with their employer.  This means that once an employee has worked for at least six months, they are entitled to take paid vacation time.

The specific amount of vacation days they are entitled to will depend on the provisions outlined in their employment contract, collective bargaining agreements, or the legal requirements set by the Federal Vacation Act (Bundesurlaubsgesetz). Generally, employees in Germany are entitled to a minimum of 20 days of paid vacation per year based on a standard five-day workweek.

To know more about Germany work culture, click here:-

https://brainly.com/question/26473711

#SPJ11

imagine that you are holding 5,000 shares of stock, currently selling at $40 per share. you are ready to sell the shares but would prefer to put off the sale until next year for tax reasons. if you continue to hold the shares until january, however, you face the risk that the stock will drop in value before year-end. you decide to use a collar to limit downside risk without laying out a good deal of additional funds. january call options with a strike price of $45 are selling at $2, and january put options with a strike price of $35 are selling at $3. assume that you hedge the entire 5,000 shares of stock. a. what will be the value of your portfolio in january (net of the proceeds from the options) if the stock price ends up at $30?

Answers

Your portfolio value in January (net of the proceeds from the options) if the stock price ends up at $30 will be $175,000.

What would be the net value of your portfolio in January?

Assuming that you hedge the entire 5,000 shares of stock and the stock price drops to $30, the value of your portfolio in January (net of the proceeds from the options) will be $175,000. This is because you used a collar to limit downside risk without laying out a good deal of additional funds.

The collar involves purchasing a put option with a strike price of $35 and selling a call option with a strike price of $45. This limits the potential loss of the stock price drop while allowing for some upside potential.

To calculate the net value of your portfolio, you first need to determine the cost of the collar. The put option costs $3 per share, or $15,000 for the entire position, while the call option generates $2 per share, or $10,000 for the entire position. Therefore, the net cost of the collar is $5,000.

If the stock price drops to $30, your shares will be worth $150,000. However, you can exercise your put option to sell your shares at $35 per share, generating $175,000. Subtracting the net cost of the collar of $5,000, the net value of your portfolio would be $170,000.

Learn more about Stock price

brainly.com/question/16881376

#SPJ11

Which of the following is not one of the 3 major ways to save for retirement
that were discussed in class?
O a. Saving and investing throughout your life
O b. Getting paid via benefits from social security
O d. Liquidating the majority of your assets into cash
O c. Leveraging benefits from your previous job

Answers

The option that is not one of the 3 major ways to save for retirement discussed in class is option

(d) liquidating the majority of your assets into cash.

What is a better way to save for retirement

This is not a sustainable strategy for retirement savings as it involves selling off assets that could potentially generate income and growth over time.

The three major ways to save for retirement are:

a. Saving and investing throughout your lifeb. Getting paid via benefits from social securityc. Leveraging benefits from your previous job (such as a pension plan or 401(k))

Learn more about  retirement savings at

https://brainly.com/question/30251106

#SPJ1

in addition to the benefits of human and geographical specialization, what are some side benefits to free trade? multiple select question. it promotes competition. it encourages innovation. it promotes monopolies. it offers consumers a narrow range of product choices.

Answers

Scale economies. Free trade allows for expansion, which leads to increased output. However, increased output leads to a decrease in average production . Hence option A and B is correct .

What is Free trade ?

Enhanced competition. Free trade enables businesses to compete on a global scale. This is related to increased competition, which contributes to product improvement and lower customer prices.cost per unit, which is known as economies of scale.

Specialisation. To increase efficiency, countries can use free trade to exchange products and specialize in the production of a narrow range of goods or services.

Monopolies must be reduced. Domestic monopolies are greatly reduced by free trade. It enables international trade, resulting in a market with many producers competing with one another.

Learn more about Free trade here

https://brainly.com/question/14365634

# SPJ 1

In what three ways does the government affect production of goods and services in the US economy?

Answers

Government activity affects the economy in four ways: The government produces goods and services, including roads and national defense. Less than half of federal spending is devoted to the production of goods and services

Two different manucaturing processes are being considered for making a new product. The first process is less capital - intensive with fixed costs of only $49,000 per year and variable costs of $680 per unit. The second process has fixed costs of $402,000 but variable costs of only $220 per unit.
a. What is the break-even quantity; beyond which the second process becomes more attractive than the first?
the volume at which the second process becomes more attractive is ___ Units.

Answers

To determine the break-even quantity, we need to find the point at which the total costs of the two processes are equal. Let's denote the break-even quantity as x.

For the first process, the total cost is the sum of the fixed costs and the variable costs per unit multiplied by the quantity: 49000 + 680x.

For the second process, the total cost is the sum of the fixed costs and the variable costs per unit multiplied by the quantity: 402000 + 220x.

To find the break-even quantity, we equate the two total costs:

49000 + 680x = 402000 + 220x.

Now, let's solve for x:

680x - 220x = 402000 - 49000
460x = 353000
x = 767.39 (approximately)

Therefore, the break-even quantity is approximately 767 units.

Beyond this quantity, the second process becomes more attractive than the first because the variable cost per unit is lower for the second process.

So, for any quantity beyond 767 units, the second process would result in lower costs compared to the first process.

To know more about Break-even quantity, visit:

https://brainly.com/question/30852518

#SPJ11

Other Questions
PLEASE HELP!!!Situational irony occurs when what is expected to happen is different from what actually happens. From the highlighted passage in sec. 6, we expect that... (Text in the pic. below)A. The men will see how foolish their feud is and settle it on the spot.B. The men will make a short speech, as honor requires, and then shoot each other.C. The men will call for help. how many integers less than 500 are relatively prime to 500? evaluate x^2/y^4/3 ds where c is the curve x=t^2 y=t^3 from 1 read this sentence from the story Josh on the other hand was enthusiastic to start classes especially his basketball class. On the lines below, rewrite the sentence with correct punctuation A nurse is performing a quality improvement audit on staff hand washing technique. what are the steps of proper hand washing when using soap and water? En una caja grande hay 9 cajas dentro de cada una de estas cajas hay 5 cajas, dentro de estas hay 3 cajas. Cuntas cajas hay en total? petechiae are the result of what? chapter 40 Which description best represents the inequality:8x < x + 6? Why do some Otitis media in kids not responding to amoxicillin? What was the purpose of the Stamp Act of 1765?to raise revenue from American coloniesto determine if colonists were smugglingto give Parliament the right to levy a taxto punish people who did not pay their taxes An insured lives in a house covered by an $80,000 Special Form(DP-3) policy. While the insured is on vacation, someone breaks into the house and steals$5,000 in electronic equipment. The damage to the door is estimated at $800. What coverage is provided by theDP-3 policy? Kilbane Corporation had earnings per share of $5.00 in the lastquarter and wishes to maintain a 55% payout ratio. What per-sharedividend should they pay? Someone help with these two questions. just making sure if what i wrote is correct. The initial pressure of 0.31 moles of gas in a drum is 742 torr. If gas is added to the drum and the final pressure is 759 torr, how many moles of gas are in the drum? Hint: for this problem, you do not have an equation in the Introduction section, but based on the relationship between pressure and volume, what can you determine about the relationship between pressure and the number of moles? f: x x + 5 9: x 8x What is the value of fg(4.5)? A species of flower lives in an environment that has always had an abundance of rain but is now experiencing less rainfall each year. Which variation within the flower population would be beneficial in terms of natural selection Question2 A half litre bottle has a mass of 80g. It contains 500 cmof liquid when full. The bottle is filled with olive oil ofdensity = 0.90 g/cm?.a Calculate the mass of oil in the bottle.b Calculate the mass of the full bottle.Calculating volumeVe can rearrange the equation for density to make volume its suke this: a chemist adds of a m sodium chloride solution to a reaction flask. calculate the millimoles of sodium chloride the chemist has added to the flask. round your answer to significant digits. Can yall help me find the width what functions does propilot assist with navi-link add to propilot assist?