Suppose that an initial $10 billion increase in investment spending expands GDP by $10 billion in the first round of the multiplier process. Also assume that GDP and consumption both rise by $8 billion in the second round of the process.A) What is the MPC in this economy? B) What is the size of the multiplier?

Answers

Answer 1
Answer:

Answer: A. MPC = 0.8

B. Multiplier = 5

Explanation:

Given in the question above, we have:

Change in consumption = $8 billion

Change in income = $10 billion

(We know, GDP = C + I + G + (X-M)

Where;

C= consumption

I= investment

G= government expenditure

X-M= net exports

Therefore, change in Investment by $10B means GDP automatically increases by $10B. Similarly, change in Consumption by $8B means GDP automatically increases by $8B.

a) The formula used to find MPC:

MPC = Change in consumption / Change in income

MPC = 8/10 = 0.8

Therefore MPC = 0.8

b) Formula to find multiplier:

k = 1/(1-MPC)

k= 1/1-0.8

k= 1/0.2

k= 5.


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What is Cash Flow ?

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Answer:

D

Explanation:

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Answers

The right answer for the question that is being asked and shown above is that: "c. Theory Y" This managers assume that employees dislike work, that motivation is best accomplished by threats and coercion, and that people prefer to be directed rather than use their own initiative. This is called the c. Theory Y

Final answer:

The described management style is Theory X, associated with Douglas McGregor. It assumes employees inherently dislike work and require coercion or threats to achieve goals, promoting an autocratic style. This contrasts with Theory Y and Z.

Explanation:

The perspective in the question describes Theory X management, which is attributed to Douglas McGregor. Theory X assumes that employees inherently dislike work and will avoid it if they can. Therefore, they must be coerced, controlled, or threatened with punishment to achieve goals. This theory promotes a more autocratic style of management, contrasting with Theory Y, which assumes employees are generally self-motivated, seek responsibility, and apply creativity to their jobs.

To put it in context, Theory Z, an alternate management style introduced by William Ouchi, integrates a large degree of worker involvement and is not mentioned in the question. Theory A does not exist in widely accepted management theories.

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Answer:

principal

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The money deposited in a bank is referred to as the principal. This terminology applies across different types of accounts, including checking, savings, and certificate of deposit (CD) accounts. For instance, if you deposit $500 into a new bank account, that amount is referred to as the principal. The interest is the money you earn over time based on that principal. Profit is generally not a term used in this context, as it generally pertains to the earnings from a business operation, not a bank account.

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Answers

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Answers

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The major federal law affecting human resources primarily addresses:

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Therefore, the correct answer is D. All of these are correct.

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Federal laws impacting human resources address a range of issues including employee and applicant protections, workplace safety, and accommodations for disabled individuals. Important laws include ADA, OSHA, and Title VII of the Civil Rights Act. Therefore, all the options provided in the question are correct.

Explanation:

Major federal law affecting human resources addresses a range of factors including protections for applicants and rights of employees, safety of the workplace, and accommodations for people with disabilities. Examples of such laws include the Americans with Disabilities Act (ADA), which requires employer accommodation in light of disability, and the Occupational Safety and Health Act (OSHA), which sets guidelines for safe workplaces. Further, Title VII of the Civil Rights Act ensures protections against employment discrimination. Thus, the correct answer to your question is: All of these are correct (option D).

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