Suppose an economy's marginal propensity to consume (MPC) is 0.6. Then 1 + MPC + MPC2 + MPC3 = 2.176 and, if we continued adding up terms in this geometric series, we would get closer and closer to the multiplier value of

Answers

Answer 1

If we continued adding up terms in this geometric series, we would get closer and closer to the multiplier value of 2.5.

What do you mean by marginal propensity?

The marginal propensity to consume plus the marginal propensity to save equals 1.

Solution:

Multiplier=1/(1-MPC)

Multiplier=1/(1-0.6)

Multiplier=2.5

MPC of n the number of cycle:

=1 + MPC + MPC2 + MPC3

=1+0.6+0.6^2+0.6^3=2.176

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Related Questions

How does banking affect the money supply?

Answers

Explanation:

when a loan is made ,it increases the money supply

The two potential ways to make money as a stockholder are through _______ and capital appreciation.

Answers

Dividends and capital appreciation are the two potential avenues for a stockholder to profit. As a result, the dividend is one of the possible methods.

What are the two ways to make money as a stockholder?

When you sell an investment at a higher price than when you bought it, you earn a capital gain. When an investment is sold for a profit, the investor realizes a capital gain.

Dividends, on the other hand, are assets distributed to stockholders from a company's profits. Dividends have a lower tax burden than capital gains since they are often low in income. In the long run, this means dividends are a better tax choice.

Taxes on capital gains vary depending on whether your investment is short or long term.

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Which term describes a form of informal training in which an experienced employee guides the work of a new employee?.

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Mentoring is a form of informal training in which an experienced employee guides the work of a new employee.

What is Mentoring?

Mentoring is a form of relationship that exist between two people with the aim of passing across professional and personal experience.

Therefore, "mentor" who is the one passing the experience is usually the one that shares knowledge and experience.

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the team-role which is likely to demonstrate such positive qualities as strategic vision and accurate judgement but may also be overly critical is:

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Monitor Evaluator demonstrate positive qualities as strategic vision and accurate judgement but may also be overly critical.

Who is a Monitor Evaluator?

Monitor Evaluator serves as one that Provides a logical eye which helps in making impartial judgements in a team.

Therefore, Monitor Evaluator weighs up the team's options in a dispassionate way.

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A lender estimates that the closing costs on a $293,600 home loan will be $11,010. the actual closing costs were 3.25% of the loan amount. determine if the closing costs were higher or lower than the estimate and by what percent? a. higher by 0.25% b. higher by 0.5% c. lower by 0.25% d. lower by 0.5%

Answers

The closing cost of the house mortgage is lower than the envisioned by 0.5%.

What is the closing cost?

Closing expenses are the prices over and above the property's rate that consumers and dealers generally incur to finish an actual property transaction.

Those expenses may also encompass mortgage origination fees, cut price points, appraisal fees, name searches, name insurance, surveys, taxes, deed recording fees, and credit score file charges.

The lender is required by regulation to expose those expenses in the form of a mortgage estimate within 3 days of a domestic mortgage application.

Gifts of equity (actual property income given to a relative or close pal at a below-marketplace rate) can also incur a few closing cost.

So, from the above announcement, it's clear that alternative D, decreasing by 0.5%, is an appropriate answer.

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If bank reserves are equal to $2,000, the required reserve ratio is 10 percent, and banks make as many loans as they can, what will be the upper limit of the money supply assuming no borrower withdraws currency and leaves the loan balance in the bank after a loan is created

Answers

The upper limit on the money supply assuming borrower withdraws currency and leaves the loan balance in the bank after a loan is created is $200,000.

What is the upper limit on the money supply?

The first step is to determine the total amount of deposits in the banks.

Deposits = resereves / reserve ratio

2000 / 0.1 = $20,000

Upper limit on money supply = deposits / reserve ratio

20,000 / 0.1 = $200,000

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Think about financial transactions between us citizens and canadians during the period shown. canadian money had the strongest buying power in . us money had the strongest buying power in .

Answers

Answer:

1.) October 2.)March

Explanation:

did it

Canadian money had the strongest buying power in "October". Canadian money had the strongest buying power in "March"

What are financial transactions?

An agreement or communication between a buyer and a seller to trade products, services, or assets in exchange for money is a financial transaction. Each transaction includes a shift in the financial situation of two or more entities, whether they be people or corporations.

On Wednesday, when the U.S. currency fell due to somewhat more dovish-than-expected language in the Federal Reserve's policy statement, the Canadian dollar rose to its highest level in more than 2 years compared to the United States dollar.

Therefore, In "October," the Canadian currency had the highest purchasing power. In "March," Canadian currency had the highest purchasing power.

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After three years, how much of the principal has been paid off? a. $25,176.60 b. $22,706.64 c. $19,827.08 d. $5,349.52

Answers

After three years ended, the amount of the principal that has been paid off is: c. $19,827.08.

Principal amount

Using this formula

Principal amount paid=Loan amount-Outstanding balance at 36 months

Let plug in the formula

Principal amount paid=$27,800.00 - $7972.92

Principal amount paid=$19,827.08

Therefore  the amount of the principal that has been paid off is: c. $19,827.08.

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Last year, diana’s boss promised her a big bonus if she met her goals. At the end of the year, after diana had exceeded her goals, she found her bonus was very small. In the future, diana’s _____ will probably be ____.

Answers

Answer:

Brainliest pls

Explanation:

instrumentality; low

How has the free enterprise system contributed to technological innovation?.

Answers

Technological innovation has been contributed to by the free enterprise system because people came up with new technologies knowing that they could profit from them.

How has free enterprise driven technological innovation?

The free enterprise system encourages people to go into business and make profit with minimal government interference in their affairs.

This encouraged people to come up with new innovations because they know that they can profit from these for themselves instead of worrying about the government taking their hard earned profit.

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Money you will need in the next 5 years should be invested in what?.

Answers

Answer:

Savings

Explanation:

Have a good day.

Suppose the reserve requirement for the United States is 20%.


Instructions: Round your answers to the nearest whole number.


a. Suppose the Federal Reserve wants to increase the money supply. What should it do to accomplish this goal?

The Fed could make an open market purchase of $20 billion, resulting in a total increase in the money supply of $ ____ billion.


b. Now suppose the Fed wants to decrease the money supply. What should it do to accomplish this goal?

The Fed could make an open market sale of $30 billion, resulting in a total decrease in the money supply of $ ____ billion

Answers

If the Fed wants to increase money supply, it should make an open market purchase of $20 billion which would increase money supply by $100 billion.

If the Fed wants to decrease the money supply, then an open market sale of $30 billion would decrease money supply by $150 billion.

What should the Fed do to increase money supply?

They can engage in an open market purchase of government securities which would lead to more dollars entering the market.

The increase in money supply is:

= Amount of purchase / Reserve requirement

= 20 billion / 0.2

= $100 billion

What should the Fed do to decrease money supply?

An open market sale of government securities would take money out of the economy and reduce money supply by:

= Amount of sale / Reserve requirement

= 30 billion / 0.2

= $150 billion

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In which city were the world trade center towers located?.

Answers

They were in New York City.

______________is the exercise of individual judgement, instead of formal rules, in making decisions.

Answers

Answer:

discretion

Explanation:

Which area is particularly challenging when recruiting workers for small businesses?.

Answers

The area that is particularly challenging when recruiting workers for small businesses is compensation.

What is compensation?

It should be noted that compensation simply means how much they workers will be paid as how to motivate them.

In this case, the area that is particularly challenging when recruiting workers for small businesses is compensation.

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A ___________ is when an employer provides employees with a percentage of the net income earned during the year.

Answers

Answer:bonus plan

Explanation:Many companies offer bonuses to employees, and many of the bonuses depend on net income. Assume that an employer gives a bonus to its employees based on the company’s annual net income (to be equally shared by all).

If the reserve ratio is 4 percent, then the money multiplier is.

Answers

If the reserve ratio is 4 percent then the money multiplier will be 0.25 or 25% by applying the formula 1 divided by the required reserve ratio.

What do you mean by money multiplier?

The money multiplier refers to the ratio of commercial bank money to central bank money.

In other words, it refers to the maximum amount of commercial bank money that can be created by central bank money.

It is calculated by dividing 1 by the reserve ratio. So when 1 is divided by 4 percent, it will give 0.25 or 25%.

Therefore, the money multiplier is 0.25 or 25%.

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Which statement or statements accurately describe characteristics of subsidized stafford loan? i. grace period during which payments are not due ii. based on student need iii. student is responsible for all interest for the lifetime of the loan. a. i only b. ii only c. i and ii d. i and iii

Answers

The statements that describe the feature of the Stafford Loan is that the loan is totally based upon the needs of the students and the payment Payments are not payable during the grace period.

Option C is correct.

What is Stafford Loan?

A Stafford Loan was a student loan provided by the United States Department of Education to qualifying enrolled students in registered American institutions of higher education.

This type of loan is totally depending upon the needs of the students, as many students are available for demanding the education loan for the different courses.

The main feature of this type of loan is that, the Payments are not payable during the grace period, as the students can repay the loan amount after their education.

Therefore, option C is correct.

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Even as a new employee, Dewayne was not content to be just one of the workers. His boss noticed that he often coached his coworkers about ways to improve their work, even when it wasn't his job. Dewayne probably has a

Answers

Given that Dewayne would want to coach his fellows and was not ok with being just a worker, it can be said that he probably has a high need for power.

Why would Dewayne have a need for power?

This is due to the fact that he may belong to the class of people that are not okay with receiving instructions.

These people often time would prefer to be the ones that are at the helm of affairs, giving instructions to others.

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The company or person who has information to convey is the ______ in the marketing communication process.

Answers

The source is the company or person who has information to convey in the marketing communication process.

What is marketing communication process?

Marketing process refers to the procedure of creating awareness towards consumers that their product exist. The ultimate goal of any marketing communication is to drive the receiver to action.

The next step is to convince potential buyers that they will receive good value if they decide to spend their money on the company's product or services.

Hence, the source is the company or person who has information to convey in the marketing communication process.

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When a primary dealer sells a government bond to the Federal Reserve, reserves in the banking system ________ and the monetary base ________, everything else held constant.

Answers

When a primary dealer sells a government bond to the Federal Reserve, reserves in the banking system increase and the monetary base increase, everything else held constant.

What happens when a primary dealer sells a government bond to the Federal Reserve?

When a primary dealer sells a government bond to the Federal Reserve, it is known as an expansionary monetary policy. An expansionary monetary policy is a policy that increases the money supply in the economy.

An expansionary monetary policy can either be :

reducing reserve ratio an open market sale

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f a firm in a perfectly competitive market triples the quantity of output sold, then total revenue will a. more than triple. b. exactly triple. c. be reduced by one third. d. less than triple.

Answers

If firm in a perfectly competitive market triples the quantity of output sold, then total revenue will exactly triple.

What Is Perfect Competition?

Perfect competition do take place in a market as a result of a situation when all companies sell identical products and un this case, market share does not influence price.

Therefore, in this market, quantity of output sold and total revenue will be the same.

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Emma has decided that she needs to assess the risk and return of buying an extended warranty for her new laptop for school. which of these practical questions should she ask herself to assess the risk? select three options. will the warranty cover the cost of any physical damage? should i buy a different model? would it be better for me to buy a desktop computer? is the cost of replacement less than the cost of the warranty? is the laptop worth the extra expense of the warranty?

Answers

While purchasing the extending warranty for her new laptop, she is required to figure out some questions in order to identify the risk and return. The three questions can be :

a) Will the warranty cover the cost of physical damage?

b) Is the replacement cost lower than the warranty cost?

c) is the laptop worth the extra expense of the warranty?

What is the warranty?

Warranty is the guarantee raised by the vendor to the purchaser regarding the replacement or repairing of any acquired item within the allocated period of time. The general term of warranty is 1 year but it can exceed more than a year depending on the manufacturer.

Analysis of the questions is as follows:

a) Will the warranty cover the cost of physical damage?

As there are varied kinds of warranties associated with every product bought, so it is required to be known by her what type of damages are covered in the warranty which she is going to purchase.

b) Is the replacement cost lower than the warranty cost?

The cost of replacement can be greater than the cost of warranty so she vigilantly checked the prices of both as she needs to get the laptop replaced sometime in the future.

c) Is the laptop worth the extra expense of the warranty?

There are varied kinds of warranties and extra costs attached to the product which helps her in analyzing its quality.

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Answer:

A D E

Explanation:

got it wrong so you don't have to

What is a risk management strategy you could use to protect your home?.

Answers

Risk management strategy I could use to protect my home is buying a home security system.

What is risk management strategy?

A risk management strategy serves as one that provides a structured and coherent approach to management of risk.

As regards risk management at home, installation of home security system is a way to maintain risk.

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In which type of document do compensation professionals represent the selection and implementation of pay level and pay mix policies over a specified time period, usually one year

Answers

The type of document that compensation professionals use for the selection and implementation of pay level is: Compensation plan.

What is compensation plan?

A compensation plan can be defined as the type of document in which  details of an employee wages including salaries and benefit are included in document over a particular period of time.

Most companies tend to make use of compensation plan  so as to have full details of their employee salary package.

Inconclusion the type of document that compensation professionals use for the selection and implementation of pay level is: Compensation plan.

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Trish is trying to shift her company in a profound way to increase its efficiency and effectiveness. This is called organizational ______.

Answers

Organizational change is the act of shifting her company in a profound way to increase its efficiency and effectiveness.

Why is organizational change necessary?

This act of organizational change is very necessary because it gives companies the opportunity to succeed and also grow.

It would help the workers in the business to commit to the shift and adopt newer methods.

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can someone please help me i will mark the first person that gives me the help i am looking for the brainlyest

Answers

Answer:

you should have made the screen shot small so that they cant see your name

Explanation:

also these are links so i dont know how to help with this
dude please charge ur phone

_________________ should be used when you want to reinforce the importance and significance of your arguments, especially when you are not an expert on your topic. be sure to stress the competence and lack of bias of your sources, and emphasize their recent nature. a. examples b. narrations c. testimonies d. statistics

Answers

Testimonies should be employed when reinforcing the importance and significance of arguments when you are not an expert on the topic.

What is the significance of arguments?

Argument teaches us how to define our opinions, and thoughts and explain them clearly, as well as how to respectfully and critically analyze the perspectives of others.

The goal of an argument is to influence people's minds or convince them to do a certain action or behave in a certain way.

Now, when dealing with a topic that we have little understanding concerning the topic, we make use of testimonies to serve as the basis of evidence.

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Answer:  The correct answer is c. testimonies

Explanation:  Confirmed correct.

All things being equal, when producers sell goods for a lower price, they make:

A. The same amount of money.
B. Less Money.
C. As much money as the law allows.
D. More money.​

Answers

Answer:

B) Less Money.

Explanation:

Producers will make less money because they are selling a product for less.

According to the lesson, texas ranks _____ highest in the country for unemployment rate.

Answers

Answer:

The answer should be 9th

Explanation:

texas ranks 9th highest in the country for unemployment rate.

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