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kramer
2 years ago
8

Assume the marginal propensity to consume (mpc) is 0.80 and the government increases taxes by $100 billion. the aggregate demand

curve will shift to the:________
Business
1 answer:
meriva2 years ago
7 0

The change in GDP that results from an increase in taxation is known as the tax multiplier. When the government raises taxes and MPC is 0.8, the tax multiplier also rises, which causes the aggregate demand to move to the left. However, this choice is flawed because the tax multiplier is $400billion.

Tax multiplier: MPC1 MPC=0.80 MPC=0.80 MPC=100 = $400 billion

The selection is in error. The increase in taxes would reduce consumers' disposable income and cause a decline in spending. As a result, aggregate demand will decrease and move $400billion to the left. The assertion is untrue. The aggregate demand would decline initially as a result of a tax rise and later on due to a change in disposable income. Although.

Learn more about tax multiplier here.

brainly.com/question/28214877

#SPJ4

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Capital budgeting decisions ______. Multiple select question. involve an immediate cash outlay in order to obtain a future retur
pshichka [43]

Answer:

involve an immediate cash outlay in order to obtain a future return

require a great deal of analysis prior to acceptance

Explanation:

A capital budgeting decision refers to an investment and the financial commitement. If we considered a project so here the business is making the financial commitment and at the same time it invest in the longer period that have an influence on the future projects

So it is an instant cash outflow for gaining a future return and also have a great deal before accepting it

7 0
3 years ago
Recording Issuing of Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 94
babymother [125]

Answer:

Work in process = $72,220

Factory Overhead = $1,098

Explanation:

DATA

No.      Material     Job No.        Amount

945     Fiberglass     78           $20,240

946       Plastic         93             $9,890

947      Glue            Indirect        $1,098

948     Wood              99           $3,622

949     Aluminium      108         $38,468

Required:  Amount of materials transferred to Work in Process and Factory Overhead?

Solution

Work in process = sum of all direct material cost

Work in process = $20,240 + $9.890 + $3,622 + $38,468 = $72,220

Factory Overhead = sum of all indirect material cost

Factory Overhead = $1,098

6 0
3 years ago
During a period, an RV company purchased three vehicles for $33,000, $46,000, and $24,000, and sold two of them for $125,000. Us
Georgia [21]

Answer: $68,000

Explanation:

If the inventory that remains is the $46,000 then that means that the cars costing $33,000 and $24,000 have been sold.

With specific identification, the actual prices of the stock are used so the cost of goods sold is:

= 24,000 + 33,000

= $57,000

The gross profit is therefore:

= Sales - Cost of goods sold

= 125,000 - 57,000

= $68,000

7 0
2 years ago
In what type of economy do individuals and firms determine what will be produced?
Katen [24]

Answer:

market

Explanation:

5 0
3 years ago
Read 2 more answers
Damon Corporation issued $400,000 of 6% bonds on May 1, 2020 using straight-line interest. The bonds were dated January 1, 2020,
Marat540 [252]

Answer:

May 1

Dr Cash408,000

Cr Bonds Payable 400,000

Cr Interest Expense 8,000

July 1

Dr Interest Expense 12,000

Cr Cash 12,000

Dec 31

Dr Interest Expense 12,000

Cr Interest Payable12,000

Explanation:

May 1,

Dr Cash408,000

Cr Bonds Payable 400,000

Cr Interest Expense 8,000(Accrued Interest = 400,000 x 6% x 4/12)

July 1

Dr Interest Expense 12,000

Cr Cash 12,000(Bond interest expense = 400,000 x 6% x 6/12)

Dec 31

Dr Interest Expense 12,000

Cr Interest Payable12,000

3 0
3 years ago
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