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AlladinOne [14]
2 years ago
13

Assume that marginal propensity to consume is 0.8 and potential output is $800 billion. if the actual real gdp is $700 billion,

which policy would bring the economy to potential output?
Business
1 answer:
fenix001 [56]2 years ago
7 0

By assuming that marginal propensity to consume is 0.8 and potential output is $800 billion. if the actual real GDP is $700 billion, <u>Increase government spending by $20 billion</u> policy would bring the economy to potential output.

Marginal Propensity to Consume (MPC) is calculated using the formula MPC = C/Y, which divides consumption change by income change.

You must first determine the change in income and the ensuing change in spending in order to perform this calculation (consumption).

The computation would go as follows if a person's income rose by $5,000 and their expenses rose by $4,500:

MPC = 4,500/5,000. MPC equals.9, or 90%

To learn more about MPC here

brainly.com/question/2293060

#SPJ4

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Answer:

- 0.30

Explanation:

Given the following :

Hedge ratio of an at-the-money call option on IBM = 0.35

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Hedge ratio of an at-the-money straddle :

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3 years ago
Joe has just moved to a small town with only one golf​ course, the Northlands Golf Club. His inverse demand function is pequals
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Answer:

Club membership fee of $60 would maximize profit.

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Explanation:

Joe has entered into a monopoly because he is owner of single golf course in the Northlands.

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3 years ago
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Answer:

Diversity

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a. Must have a good faith belief that the tax return position will be accepted by the IRS.

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