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: 2
Business, 22.06.2019 14:10, liliauedt
When a shortage or a surplus arises in the loanable funds market a. the supply of loanable funds changes to return the economy to its original real interest rate b. the nominal interest rate is pulled to the new equilibrium level c. the demand for loanable funds changes to return the economy to its original real interest rate d. the real interest rate is pulled to the new equilibrium level
Answers: 3
Business, 22.06.2019 15:40, Zachary429
Brandt enterprises is considering a new project that has a cost of $1,000,000, and the cfo set up the following simple decision tree to show its three most likely scenarios. the firm could arrange with its work force and suppliers to cease operations at the end of year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. how much is the option to abandon worth to the firm?
Answers: 1
Business, 22.06.2019 16:10, safiyyahrahman6907
From what part of income should someone take savings?
Answers: 2
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