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2 years ago

When the mpc = 0.75, the desired tax cut for achieving a $300 billion fiscal stimulus is _____.

1 answer:

6 0

Based on the marginal propensity to consume, the required tax cut to get a $300 billion stimulus is $400 billion.

<h3 /><h3>How much of a tax cut is needed?</h3>

This can be found by the formula:

= Required fiscal stimulus / Marginal propensity to consume

Solving gives:

= 300 / 0.75

= $400 billion

In conclusion $400 billion of tax cuts are needed.

Find out more on marginal propensity to consume at brainly.com/question/17930875.

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On January 1, 2020, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January

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Answer:

Discount on bonds issuance = $15750

Explanation:

A bond is issued at a discount when the issue price of the bond is less than the face value of the bond. This usually happens when the coupon rate paid by the bond is less than the market interest rate. To calculate the amount of discount on bonds issuance, we simply deduct the issue price from the face value of the bond. Thus,

Discount on Bonds = Face value - Issue price

As we know the face value of the bonds is $700000 and the issue price is $684250, we can calculate the discount on issuance to be,

Discount on bonds issuance = 700000 - 684250

Discount on bonds issuance = $15750

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Answer:

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The dividend at 5% of $100 par value is $5 per unit of shares. Recall, each unit of the preference shares has a par value of $100

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This year total dividend payout will be current year of $1,000,000 plus previous year of $1,000,000 = $2,000,000

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