As the marginal propensity to consume (MPC) increases, the multiplier increases. decreases. remains the same. As the marginal propensity to save (MPS) increases, the multiplier decreases. remains the same. increases. If the marginal propensity to consume is 0.40 , what is the multiplier, assuming there are no taxes or imports

Answer: 1. Increases

2. Decreases

3. 1.67

Explanation:

The formula for the Investment Multiplier is,

= 1/ ( 1 - MPC)

From this formula, inferences can therefore be made.

1. As the marginal propensity to consume (MPC) increases, the Multiplier INCREASES.

As the MPC increases, it will reduce the denominator therefore increasing the Multiplier.

2. As the marginal propensity to save (MPS) increases, the multiplier DECREASES.

The Marginal Propensity to Save is ( 1 - MPC) because what isn't consumed is saved.

The MPS is therefore the denominator of the Multiplier equation.

That means then that as it rises, the Multiplier Decreases.

3. The Formula for the Investment Multiplier is, = 1 / ( 1 - MPC)

= 1 / ( 1 - 0.40)

= 1.67

Companies within the oneworld, Star, and Sky Team alliances have also engaged in major mergers and acquisitions (M&A): American and US Air (oneworld), Delta and Northwest (Sky Team), and Continental and United (Star). What are the advantages and disadvantages of M&A versus non-equity alliances in this industry? 15-4. Some airlines, such Daniels, John. International Business (p. 425). Pearson Education. Kindle Edition.

Zoum Corporation had the following transactions during the year: Issued $250,000 of par value common stock for cash. Recorded and paid wages expense of $120,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $20,000. Sold a long-term investment (cost $8,000) for cash of $6,000. Recorded cash sales of $800,000. Bought inventory for cash of $320,000. Acquired an investment in Zynga stock for cash of $42,000. Converted bonds payable to common stock in the amount of $1,000,000. Repaid a 6-year note payable in the amount of $440,000. What is the net cash provided by financing activities?

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Select the correct answer from each drop-down menu,
Jack has to pay
tax to the government for his house. This type of tax is
tax

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Direct materials information Medium speed bump Large speed bump

Standard pounds per unit 15 ?

Standard price per pound $1.00 $1.80

Actual quantity purchased and used per unit ? 16

Actual price paid for material per pound $1.80 $2.10

Direct materials price variance $1,120 U $1,920 U

Direct materials quantity variance $100 F ?

Total direct material variance ? $480 U

Number of units produced 100 400


Calculate missing direct material variables

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a. 2.25 Years.
b. 2.5 Years.
c. 2.75 Years.
d. 3 Years.
e. 3.2 Years.

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