Suppose that the marginal propensity to consume is 0.80 and the government spends $10 million to repair a bridge. Assuming no taxes and no international trade, explain how the $10 million of government spending will increase GDP by $50 million.

Royal motor corp. generates a major portion of its revenues by manufacturing luxury sports cars. however, the company also derives an insignificant percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. which of the following terms best describes royal motor corp.? a. aconglomerate b. a subsidiary c. adominant-businessfirm d. a single-business firm