Business, 26.06.2019 22:30 lyne29

Businesses in the nation of islandia have been accumulating cash because they have a pessimistic outlook of the national economy. recent changes in the economic outlook of islandia have caused business leaders to begin to invest some of their accumulated cash. suppose that businesses in the country invest a total of $20 billion of this cash. (a) what would be the maximum expected change in gdp if islandia's marginal propensity toconsume (mpc) is 0.75? (b) suppose that the recent economic outlook in the country of mountainia has been the opposite. businesses have postponed planned investments and have begun to accumulate cash. ifbusinesses in mountainia postpone $10 billion of their planned investments, what would be themaximum expected change in gdp if its marginal propensity to save (mps) is 0.25?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 22:20, arijade1391

Why should you not sign the tenant landlord agreement quickly and immediately

Answers: 1

continue

Business, 22.06.2019 00:30, camillaowens206

Adds up the money earned by producers plus taxes paid to the goverment. a) income approach b) product approach c) expenditure approach

Answers: 3

continue

Business, 23.06.2019 00:20, hdhdhd49jdhd

Barney corporation recognized a $100 million preferred stock balance on 12/31/2019. on january 1, 2020, barney issued $10 million in preferred dividends. on the same date, barney raised an additional $20 million via a new issuance of preferred stock. on december 31, 2020, the market value of the original amount of preferred shares rose $5 million. under us gaap, the 12/31/2020 year ending preferred stock balance is:

Answers: 3

continue

Business, 23.06.2019 02:30, hgghukghj1814

When the price of pencils increases from $1.50 to $2.50, there is an increase in quantity demanded of pens from 100 to 150. the cross-price elasticity of demand between pencils and pens is: ?

Answers: 3

continue

You know the right answer?

Businesses in the nation of islandia have been accumulating cash because they have a pessimistic out...