Imports are directed exclusively to investment

Assignment Help Business Economics

Reference no: EM131098645

The only change which happened between the previous and the current year is that while in the previous year all of the 100 million worth of imports were used for consumption, now all imports are directed exclusively to investment . Therefore this will affect the national account of the current year by:

(a) A decrease in consumption by a 100 million and an increase in investment by 100 million;

(b) A decrease in consumption by 100 million times the multiplier and an equivalent increase in investment;

(c) A decrease in consumption by 100 million times the multiplier and an increase in investment by 100 million; (d) No change at all.

Reference no: EM131098645

Questions Cloud

Battle between cyber criminals and law enforcement : The battle between cyber criminals and law enforcement (and information security professionals) the world over is a constant tug-of-war. From most perspectives, law enforcement and INFOSEC personnel are at a significant disadvantage,

What is the marginal product of capital and labor : The manager of a meat-packing plant can use either butchers (labor) or meat saws (capital) to prepare packages of sirloin steak. Based on estimates provided by an efficiency expert, the firm's production function for sirloin steak is given by Q=K+L. ..

Consumer spending have on the aggregate economy : What impact does consumer spending have on the aggregate economy? How is it similar or different from the impact that government spending have on the aggregate economy?

Build gas powered generator that would produce maximum : It would cost the town of Irondale $50 million to build a gas powered generator that would produce a maximum of 5 megawatts of electricity at 15 cents per hour. Another alternative would be for Irondale to build a $100 million coal=fired generator th..

Imports are directed exclusively to investment : The only change which happened between the previous and the current year is that while in the previous year all of the 100 million worth of imports were used for consumption, now all imports are directed exclusively to investment . Therefore this wil..

Write a summary and analysis of the pelican chorus : The Pelican Chorus by Edward Lear. Write a summary and analysis in simple English, please

Inventory levels are unchanged : If prices are rising and a company’s inventory levels are unchanged, the use of fifo rather than lifo for inventory valuation will tend to result in the current period in a: higher income tax expense, b: lower gross profit percentage, c: lower ending..

Information needed to perform the process : In preparation for the Stage 2 assignment, please list some inputs to the process (things or information needed to perform the process) and outputs of the process (things or information that result from the process),

The marginal propensity to import : In an open economy, if only the demand for consumption and imports are dependent on income and the marginal propensity to consume is the same as the marginal propensity to import, the multiplier will be:

User Account

All Pages