If Jeremy is interested in buying a house, but he's nervous about interest rates going up then he should consider fixed rate mortgage.
What does "mortgage" mean?A mortgage is a contract between you and a lender that grants the lender the right to seize your property in the event that you are unable to repay the loan amount plus interest. The value of an existing home may be used as collateral for a mortgage loan to help you purchase a new home. A mortgage should have seven characteristics.
What kind of mortgage is an example of?Dave desires a mortgage loan. He accepts a 7% APR loan for $1,000,000 with a 25-year term. Dave is required to make a $707 monthly payment. This is due to the fact that the total sum due will be $2 12,035, spread out over 25 years.
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What happens if you redeem savings bonds early?
You will forfeit the final three months of interest if you redeem them early, so if you do, you must be quite certain that you need the cash.
In addition to a set interest rate, Series I bonds include an inflation adjustment. The I Bond rate was 9.62% in October 2022. Savings bonds from the Series EE series likewise expire after 30 years. Until they are redeemed, they will accrue interest just like I Bonds.
Series EE bonds differ from Series I Bonds primarily in two ways:
For the whole duration of the bond, they provide a fixed interest rate. 0.10% per year is the current rate.They provide a one-time adjustment to double the face value after 20 years of ownership.Learn more about a savings bond here:
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If depreciation exceeds gross investment, it can be concluded that the economy's capital stock is expanding the economy is importing more than it is exporting GNI is declining, but GDP is rising net investment is negative GDP is rising, but GNI is declining
Gross domestic product( GDP) is the total financial or request value of all the finished goods and services produced within a country’s borders in a specific time period.
As a broad measure of the overall domestic product, it functions as a comprehensive scorecard of a given country’s profitable health. Of all the factors that make up a country’s GDP, the foreign balance of trade is especially important.
The GDP of a country tends to increase when the total value of goods and services that domestic directors vend to foreign countries exceeds the total value of foreign goods and services that domestic consumers buy. When this situation occurs, a country is said to have a trade fat.
If the contrary situation occurs if the quantum that domestic consumers spend on foreign products is lesser than the total sum of what domestic directors are suitable to vend to foreign consumers — it is called a trade deficiency. In this situation, the GDP of a country tends to drop.
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list five reasons a stock will go up
Stock prices may go up due to a number of reasons. 5 reasons why stock prices go up are as follows:
1. Increased Demand
A stock's price rises if there is a greater demand (buyers) than supply (sellers) for it. It's simple to comprehend supply and demand. But what makes individuals like one stock and dislike another stock is tough to understand. The key is to distinguish between news that is good for a company and news that is bad. There are several solutions to this issue, and almost every investor has their own approach.
2. Increased Price of a Stock
The main premise is that a stock's price changes reflect what market participants value in a company. A company's market capitalization, or the sum of its stock price and the number of outstanding shares, is what determines how much it is worth. Additionally, the price of a stock reflects both the current value of the company and the future growth that investors anticipate.
3. Increased Earnings of a Company
In the long term, no corporation can thrive without earnings, which are the profit a company makes. This is due to the fact that analysts base their estimation of a company's future value on their projected earnings. The price increases when a company's results surprise (perform better than anticipated). Consequently, the price will decrease if a company's performance disappoints (perform worse than anticipated).
4. Valuation Ratios
The valuation ratio, although a little more complex, is the correlation between a particular financial measure (such as earnings, revenue, or cash flows) and the entity's market value. The price-to-earnings ratio, or P/E ratio, is the most well-known measure. The ratio of a company's share price to its earnings per share is known as the P/E ratio. These ratios are used by investors to evaluate a company's performance in relation to its historical and predicted earnings as well as the performance of other, similar companies.
5. News
If you've ever observed a company's stock price fluctuate after an earnings call, it was likely due to the news. The key is to distinguish between news that can change the short-term supply and demand of a company and news that can affect fundamental elements. Prices can be strongly impacted by news that alters the likelihood that a company will be able to generate future cash flows, particularly if the impact is materially different from present expectations.
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A digital signature can provide which of the following benefits?
Select one:
a.
data encryption
b.
data integrity
c.
data redundancy
d.
data availability
Digital signatures ensure data integrity by ensuring that the data received is the same as the data that was sent. Digital signatures use cryptographic techniques to create a unique signature for each message sent.
This signature is generated using a private key that is unique to the sender and is kept private. The signature is then compared with the original data using a public key that is freely available to anyone. If the signature matches the data, then the data has not been altered and can be considered authentic. Digital signatures also ensure irreversibility, meaning that the sender cannot deny sending the message. Digital signatures are an important tool for ensuring data integrity and authentication.
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1. The primary goal of financial management is:
a-Maximize current sales
b-Maximize the current value of each common stock.
c-Minimize operational costs
2. Earnings per share are equal to:
a-Net income divided by the total number of shares outstanding.
b-Gross income multiplied by the even value of the common shares.
c-Operational income divided by the even value of the common shares.
3. Financial leverage refers to:
a-The amount of debt that is used in the capital structure of a company.
b-The ratio of retained earnings and stockholders' equity.
c-The ratio of the cost of goods sold to total sales.
4. The present value of the future cash flows discounted at the appropriate discount rate is called the:
a-Main value
b-Present value.
c-Simple Interest Rate.
5. The process of finding the present value of a certain future amount is often called:
a-increase.
b-discount.
c-compound.
6. _____________ can be interpreted as the equilibrium or breakeven financing rate that leads to a profitable project.
a-the recovery period.
b-the internal rate of return.
c-the net present value.
7. The most valuable investment disregarded if an alternative investment is chosen is a:
a-Expense value expense.
b-Sunk cost or Sunk cost.
c-Opportunity cost.
8. Variable costs _____________.
a-They change based on the number of units produced.
b-They change depending on the next unit produced.
c-they comprise the sum total of all the expenses of production of the company during a period of time
9. The marginal costs ______________.
a-(over a period of time) are constant regardless of the number of units produced.
b-They change depending on the next unit produced.
c-they comprise the total sum of all the production expenses of the company during some period of time.
10. Fixed costs ________________.
a-(over a period of time) are constant regardless of the number of units produced.
b-They change depending on the next unit produced.
c-they comprise the total sum of all the production expenses of the company during a period of time.
11. The amount of systematic risk present in a particular risky asset, in relation to the systematic risk present in an average risk asset, is called the _________ of the asset in particular:
a-Beta coefficient
b-Law of a single price.
c-Diversifiable risk.
12. The weighted average of a company's costs of its capital, preferred shares and after-tax debt is:
a-Expected performance by capital gain of the share.
b-Expected return for capital gain of the firm.
c-Weighted average cost of capital (CPPC).
1. C) Maximize the value of the existing stock.
2. B) Net income divided by the total number of shares outstanding.
3. B)The ratio of retained earnings and stockholders' equity.
4. B) present value
5. B) discount.
6. B) the internal rate of return.
7. B) Sunk cost or Sunk cost.
8. A) They change based on the number of units produced.
9. B) They change depending on the next unit produced.
10. C)they comprise the total sum of all the production expenses of the company during some period of time.
11. A) Beta coefficient
12. C)Weighted average cost of capital (CPPC).
Meaning of Costs: Both fixed and variable costs make up an organization's overall cost. Only when variable costs are present do fixed costs and variable costs have an impact on the marginal cost of production. By dividing the change in total cost by a one-unit change in the manufacturing output level, the marginal cost of production is determined.
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_______ are the types of information systems capabilities needed to meet business objectives.
A) Information requirements
B) System functionalities
C) System design specifications
D) Physical design specifications
System functionalities are the types of information systems capabilities needed to meet business objectives.
Setting business objectives is essential to achieving success. Defining what your business needs to achieve in the short-term and long-term is the foundation for building an effective strategy. It is also a way to measure your progress and success over time.
Setting objectives should be realistic and achievable, but should also challenge the team to stretch their abilities. Goals should also be specific and have clear milestones, so progress can be tracked. Establishing business objectives is a crucial step in setting up a successful business.
Hence, the correct option is "B".
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As a senior executive, you are keen to develop your hospital as a learning organization. Part of your purpose in translating this vision into practice is to: (Select all that apply.)
You want to transform your hospital into a learning organization as a senior executive. Your goal in putting this vision into action includes developing leaders and maintaining or raising the bar for healthcare. Keep up with new evidence and information.
A hospital is a place where patients can receive medical care and can access specialized medical personnel, auxiliary medical personnel, and medical equipment. The most common type of hospital is a general hospital, which frequently has an emergency department to handle people with serious illnesses as well as people who have just been in a fire or an accident and need quick medical attention. A district hospital, which is often the biggest hospital in its vicinity, has a lot of beds for intensive care as well as extra beds for patients who need long-term care. Specialized hospitals include trauma centers, rehabilitation centers, children's hospitals, senior citizens' hospitals, and hospitals for children, as well as institutions for special medical requirements such mental health treatment and certain disease categories. Specialized hospitals can help cut health costs compared to general hospitals.
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As a senior executive to transform your hospital into a learning organization one should put your vision into action including developing leaders and maintaining or raising the bar for healthcare. Keep up with new evidence and information.
A hospital is a medical facility where patients may receive medical treatment and have access to specialized medical staff, auxiliary medical employees, and medical equipment. A general hospital is the most common form of hospital, and it typically features an emergency department to treat individuals with serious illnesses.
A district hospital, which is frequently the largest hospital in the area, contains a large number of intensive care beds as well as extra beds for patients who require long-term care.
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Select the correct answer. Based on the graph, how many people are willing to work when the government of a country raises the minimum wage from $17 to $25? A. 9 B. 12 C. 16 D. 19 E. 28 Reset Next
Based on the graph , the number of people who are willing to work when the government of a country raises the minimum wage from $17 to $25 is 28. The Option E is correct.
How do we conclude the numbers?The number of workers a company is willing to hire for a certain salary is referred to as demand in the labor market. Or the number of employees required. However, supply in this market is the number of workers willing to work for the offered salary.
In this case, the graph shows that the demand is 9 and the supply is 28 workers on the ordinate axis (Y line), where the minimum wage values are located. This means that companies would hire 9 workers at the minimum wage of $25, and there are 28 workers willing to work at that wage (or receiving that salary)
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When using the scaled agile framework What is one benefit of adding synchronization to the cadence of multiple teams?
One benefit of adding synchronization to the cadence of multiple teams is that it allows teams to better coordinate their work and understand dependencies between teams.
This helps to ensure that all teams are working towards the same goal and completing tasks in a timely manner. It also helps to reduce rework and accelerate the delivery of value.
For applying agile principles at an enterprise scale, there is a set of organisational and workflow patterns called the Scaled Agile Framework. A body of knowledge known as the framework provides systematic direction on roles and responsibilities, how to organise and manage the work, and values to uphold.
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Multiple solution vantage points can be comprehended, addressed, and integrated simultaneously thanks to synchronization. Together, cadence and synchronization enable Agile teams to move forward with assurance despite the inherent unpredictability.
They want to make software that is faster, more inexpensive, and better. With the help of agile methodologies, teams may work more effectively and efficiently while delivering the highest-quality product within the constraints of the budget. Adopting agile methodologies eliminates the potential for having to spend a lot of time when revisions are required. It enables teams to work directly with clients as opposed to partnering with other teams. This gradually provides a defined outcome and a focused goal. Agile lets teams offer value to their clients more quickly and with fewer difficulties through an iterative approach to project management and software development
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true or falsefinancial accounting is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.
Financial accounting is the area of accounting aimed at serving external users by providing them with general-purpose financial statements: True.
The primary goal of financial and managerial accounting, despite the fact that financial accounting is used both internally and externally while managerial accounting is used only internally, is to give its consumers pertinent information. In order for management to make wise judgements about their course of action, managerial accounting entails studying and interpreting financial data as well as other types of data. On the other side, financial accounting gives the public access to financial information about a company so they may decide whether to invest or not. In either case, they are both giving users valuable information.
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The maturity value of a $50,000, 9%, 60-day note receivable dated July 3 is:
A) $50,000.
B) $50,750.
C) $54,500.
D) $59,000.
B) $50,750. A $50,000, 9%, 60-day note due on July 3 has a $50,750 maturity value. The sum of the loan's principle and interest payments that you must make is its maturity value.
Face Value of Notes receivable = $50,000
Interest Rate = 9%
Period to maturity = 60 days
Maturity Value = Face Value of notes receivable + Interest for 60 days
= $50,000 + ($50,000*9%*60/360)
= $50,000 + $750
= $50,750
Maturity Value = $50,750
The correct option is B) $50,750
Note - Number of days in a year is taken 360 days.
The sum that must be paid to a person when a policy matures is known as the maturity value. This would cover both the guaranteed amount and extras. The amount owed and due to be paid to the holder of a financial obligation as of the obligation's maturity date is its maturity value.
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What are the 4 benefits of SMART goals?
A excellent strategy to organise the actions necessary to accomplish the long-term objectives in your grant is to set precise, measurable, attainable, relevant, and time-bound (SMART) targets. It enables you to turn your grant from a concept into execution.
What are the 4 benefits of setting SMART goals?By making goals specific, measurable, attainable, realistic and time-bound, SMART goals position you for success. The SMART method encourages you to go further, provides you with a feeling of direction and you in organising and achieving your objectives.What are the 4 main purposes of goal setting?The four most crucial results of goal setting are inspiration, vision, accountability and fulfilment (or achievement). Employees that achieve these results are better able to see how they fit into the bigger picture, work toward their goals, and enjoy success with their coworkers.To know more about SMART goals, visit:
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Which type of savings bond is best?
The best savings bonds may not be subject to federal taxes when used to adjust for inflation, and are available in both paper and electronic versions.
What do you mean by inflation?Inflation can be defined as too much money chasing too few goods. It is also known as price chasing or price hike in an economy.
The average price increase of a selection of products and services over time can serve as a proxy for the rate at which buying power declines.
A unit of currency effectively buys less as a result of the increase in prices, which is frequently expressed as a percentage.
Deflation, which happens when prices fall and buying power rises, can be compared to inflation.
The objective of measuring inflation is to determine the overall effect of changes in price for a variety of goods and services.
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Why is it important for you as an entrepreneur to do self evaluation before starting a new business venture?
Self-assessment helps entrepreneurs better identify the ideal size and scope of the firm before it even starts, by incorporating their personal financial, family, and other personal goals into the mix.
Why is self-evaluation crucial for business owners?Self-evaluation has existed since the beginning of time in the form of the admonition: Know Thyself. It arose around four decades ago from study in psychology, and it has since been utilized in that discipline, medicine, and, increasingly, business.
It is a tool used in business or professional activity that entails conducting a critical analysis of one's own goals, interests, skills, and experience. Organizations also utilise it as a self-evaluation tool. Employee development, team performance, and organisational transformation activities are just a few of its many business uses.
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Does contractionary policy reduce inflation?
Higher interest rates through contractionary policy can be used to dampen inflation and move the economy back to the price stability component of the dual mandate.
How can we lower inflation?Encourage Investment, Work, and Savings: Rising productivity, capital, labor, and personal savings can all contribute to lessen inflationary pressures.
How is inflation managed by the RBI?The Reserve Bank of India (RBI) uses a number of monetary policy instruments to control inflation and deflation, including the repo rate, reverse repo rate, bank rate, open market operations, statutory liquidity ratio (SLR), cash reserve ratio (CRR), liquidity adjustment facility (LAF), and market stabilization scheme.
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The purpose of contractionary monetary policy is to lower rather than to halt the rate of demand for goods and services. Therefore, a contractionary policy that raises interest rates can be employed to reduce inflation and return the economy to the dual mandate's price stability goal.
In the study of economics, inflation is the term used to describe an increase in a nation's overall cost of goods and services. As the general price level rises, each unit of currency may buy fewer goods and services, hence inflation is related to a reduction in the purchasing power of money. The opposite of inflation is deflation, which is a persistent rise in the overall level of prices for goods and services. The most common measure of inflation is the annualized percentage change in a general price index, sometimes known as the inflation rate. Because price rises are not constant across the board, the consumer price index (CPI) is widely used for this purpose.
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Inland water transport system does not exist in which state?
Inland water transport systems are used in many states throughout the United States. It is possible that some states may not have as developed or extensive an inland water transport system as others, but it is not accurate to say that any particular state does not have an inland water transport system at all.
Inland water transport systems in the United States generally include rivers, lakes, and canals. These systems are used for a variety of purposes, including transportation of goods, recreation, and hydroelectric power generation. Some examples of states with well-developed inland water transport systems include Minnesota, Arkansas, and Louisiana.
when a company starts a new division and recruits people to do the work, which aspect of its internal environment is it most directly changing?
when a company starts a new division and recruits people to do the work, which aspect of its internal environment is it most directly changing employees.
A group of people with a common goal who may be either natural, legal, or a combination of the two is referred to as a corporation, which is commonly shortened as "co. To accomplish clearly defined goals, the company's staff works together for a single cause. Companies come in a variety of shapes, including:volunteer organizations with a profit-making goal, such for-profit companies, banks, initiatives, or institutions of higher learningA company may be legally recognized as a separate entity by incorporation, which limits the company's liability as long as its members abide by the terms of the publicly proclaimed incorporation or published policy.
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What information is computer 1 looking at in the ARP table on router Y?
It is to be noted that the MAC and IP address pairs of the network's devices are the most crucial data in an ARP table. Thus, it is correct to infer that these are the information that the computer is accessing in the ARP Table on the y Router.
What is an ARP Table in Information Technology?An ARP (Address Resolution Protocol) table is a computer networking data structure that is used to translate a network address, such as an IP address, to a physical (MAC) address. The ARP table is often maintained in a device's memory, such as a router or computer, and is used to rapidly find up the physical address matching to a particular network address.
Note that the ARP Table also contains other useful information, such as the precise interface to which a MAC address is attached and how long the ARP entry should be kept in the table.
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calculating gross pay for hourly workers is an example of ________ decision making.
Calculating gross pay for hourly workers is an example of Structured decision making.
The term "workforce" or "labour force" refers to the group of people who are either employed or unemployed. It usually refers to people who work for a certain organization or sector, but it may also refer to a specific geographic area like a city, state, or nation.
A company's worth may be described as being represented by its "Workforce in Place." A nation's workforce consists of both employed and jobless people. Any type of job that is structured and compensated in a formal manner is considered formal labour.
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One advantage market economies have over centrally-planned economies is that market economies Group of answer choices are more efficient. solve the problem of scarcity. provide an equal distribution of goods and services to households. establish a significant role for government in the allocation of resources.
The proper choice, according to the supplied statements, seems to be more effective.
Why has the market been shut down?Suspended trading may occur for a number of factors, including a company's lack of up-to-date, thorough, or control systems, for example when it is behind in submitting periodic reports. There are doubts about the accuracy of information that is publicly available, particularly the data in recent press releases.
The market is declining; why?A significant calamity, a financial collapse, and or deflation of a tall boom phase can all lead to a stock market decline. Another important factor is the public's irrational anxiety following a stock market decline, which can lead to panic selling and more price declines.
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The complete question is-
One advantage market economies have over centrally-planned economies is that market economies-
a). Provide an equal distribution of goods and services to households.
b). Establish a significant role for government in the allocation of resources.
c). Solve the problem of scarcity.
d). are more efficient.
if the fed wants to sell more government bonds than people are willing to buy, then the fed should
a. Decrease the price it charges for the bonds. b. Switch to another type of monetary policy tool. c. Encourage a government agency to buy the bonds. d. Raise the price it charges for the bonds
If the fed wants to sell more government bonds than people are willing to buy, then the fed should decrease the price it charges for the bonds.
Open market operations (OMO), in which the Fed purchases or sells Treasury bonds on the open market, are a significant tool at its disposal. Because OMO can change both interest rates and the overall money supply, it is comparable to directly influencing interest rates. Once more, this process's rationale is quite straightforward.
When the Fed purchases bonds on the open market, it expands the amount of money available to the general public by exchanging the bonds for cash. In contrast, if the Fed sells bonds, it reduces the money supply because it takes money out of circulation in return for bonds. OMO thus has a direct impact on the money supply.
The correct answer is option a.
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What is the co domain of Accenture multi party system practice Brainly?
Supply chain, digital identification, and financial services are Accenture Blockchain and Multiparty Systems' areas of expertise.
What is Accenture's multi-party system?In Multi-party Systems, Accenture's job is to "assist a single organization in developing a data ingress platform."
Enabling data standardization across organizations. Introducing token features that enable the creation of digital twins of physical assets, the transfer of value, the creation of tokenized incentives, and the fractionalization of ownership of assets.
Supply chain,digital identification, andfinancial services,In each of these categories, we have established tremendous foundational capabilities, validated demonstrations of value, and assisted business ecosystems in implementing the first wave.
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Why do management accountants need to understand their companies' strategies?Collapse "Strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors" (Garrison, Noreen, & Brewer, 2018, p.
Management accountants' work is fundamentally based on their understanding of business strategies. A management accountant supports the executive team of a firm by acting as a trusted advisor. Key decisions are involved in company plans.
Senior managers can learn about the success of a firm by reviewing financial reports that management accountants compile and deliver. For instance, they might estimate the potential revenue from a new product or look into potential cost-saving measures for an organization's procedures. The most crucial task for a management accountant is to conduct a pertinent cost analysis to identify current costs and make recommendations for future actions. A management accountant works directly for and for an organization, as opposed to a chartered accountant who works for a practice of chartered accountants and collaborates with numerous other organizations to provide financial assistance, counsel, analysis, and financial reporting.
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if the fed wants to increase the money supply, it will _____ treasury securities.
Are Roth IRA distributions considered income?
There are various ways that a Roth IRA differentiates from a standard IRA. It is not tax deductible to make a contribution to a Roth IRA, but qualifying distributions that represent a return of investment are not taxed.
Distributions from a Roth IRA are they counted as income?You must include the following in you total household resources: Changing an IRA from normal to Roth in the year that the income is added to taxpayers money AGI (AGI). a qualifying distribution's amount that is higher than a taxpayer's contributions.
How are Roth payouts taxed?Qualified withdrawals from such a Roth fund are tax-free even though there is no deduction of Roth IRA deposits.
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What are the two types of general ledger?
The two types of general ledger are single-entry systems and double entry systems.
The general ledger is the cornerstone of any accounting system. It is the foundation of financial record-keeping and serves as an official record of the organization's financial transactions. There are two main types of general ledgers: the single-entry system and the double-entry system.
Single-entry systems are often used by small organizations and individuals as they only require one entry for each transaction. This type of system is generally less accurate than double-entry systems, as there is less data to analyze.
Double-entry systems are the most commonly used type of general ledger, as they are more accurate and provide a better overview of the organization's financials.
In a double-entry system, two entries are made for each transaction: one entry records a debit and the other records a credit. This system helps to ensure that all entries are properly balanced, which provides greater insight into the organization's financials.
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The output at which average product is a maximum is the same output at which _____ is a minimum a. average variable cost b. average fixed costc. average total cost d. marginal cost
Option (a), The output where the average product is at its highest is also the output where the average variable cost is at its lowest.
What is the lowest level of output at which the average cost is?Calculate the amount that must be produced in order to bring marginal costs into balance with average total costs. This will help you decide how much to create in order to lower average total costs. Therefore, ATC is negligible at 50 units of output.
Should the business act in situations where the product's price is less than the usual variable cost?To stop further losses, a business must shut down if it is consistently losing money on variable expenses even while its price is below the average variable cost.
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Common stockholders have the right to O vote at stockholders' meetings. O share in any dividends distributed to common stockholders. O sell their stock. O all of the other answers are true.
Common stockholders have the right to vote at stockholders' meetings, share in any dividends distributed to common stockholders, and sell their stock.
Common stockholders are individuals or entities who own shares of common stock in a company. Common stock is a type of ownership in a company, which gives the stockholder the right to vote at shareholder meetings and to receive dividends if the company declares them.
Common stockholders have the following rights:
1. Voting rights: Common stockholders have the right to vote on issues such as the election of the board of directors, changes to the company's bylaws, and other important matters.
2. Dividend rights: Common stockholders have the right to receive dividends if the company declares them. Dividends are payments made by the company to its shareholders from its profits.
3. Residual rights: Common stockholders have the right to share in any remaining assets of the company if it is liquidated or dissolved.
4. Right to transfer ownership: Common stockholders have the right to transfer ownership of their shares to others.
5. Right to inspect company's books and records: Common stockholders have the right to inspect the company's books and records to ensure that the company is being managed in the best interest of shareholders.
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Which of the following tends to increase the spending multiplier? (A) An increase in the marginal propensity to consume. (B) A decreased velocity of money. (C) An increase in the marginal propensity to save. (D) An increase in the real interest rate
The spending multiplier will increase if there is an increase in the marginal prosperity to consume (A).
Spending multiplier is an implementation of the multiplier effect in the perspective of public spending. Spending multiplier refers to how public spending will react if there is any changes on the income and capital. Spending multiplier predicts the expected increase in income per dollar investment, reflected to the public spending level.
Spending multiplier might be calculated following the Multiplier Effect formula, where multiplier is equals to the result of change in income divided by change in spending. If we use the Keynesian Multiplier formula, we can get:
Multiplier = 1 / (1 - MPC)
Where:
MPC = Marginal prospensity to consume
Since, the spending multiplier and (1-MPC) have a reverse relationship, hence MPC and spending multiplier have a linear relationship. If we want to increase the spending multiplier, we should increase the MPC to lower the (1-MPC) amount. On the other hand, we need to lower MPC to lower the spending multiplier.
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according to _____, people measure outcomes such as pay in terms of their inputs.
A. distributive justice theoryB. pay policy lineC. economic theoryD.equity
Answer: D. Equity
Explanation:
