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igomit [66]
2 years ago
8

Suppose the marginal propensity to consume is 0.8 and the government cuts taxes by $40 billion. real gdp will _____ by _____.

Business
1 answer:
Dmitriy789 [7]2 years ago
8 0

If the government cuts taxes by $40 billion, this puts more money in consumers' pockets. Given an MPC of 0.8, this means they will spend $32 billion

Evaluating :

(0.8 × $40 = $32).

The correct answer is an increase of $32 billion.

GDP:

Gross domestic product (GDP) is a measure of the final goods and services produced with a specific region over a specified period of time. It is computed as follows:

GDP = Consumption + Government Spend + Investment + Net Exports

What is Marginal Propensity to Consume (MPC)?

Marginal propensity to consume (MPC) is measured as the portion of an increase in pay that a consumer would spend on goods and services as opposed to saving. Essentially, it is measuring how sensitive consumption in an economy is to increases in income. MPC is important in economics because it illustrates the effect that increased government spending has on the economy.

Learn more about Marginal propensity :

brainly.com/question/25821146

#SPJ4

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YES,jobs should accept the offer because it results in saving of $19300

CASE 2: when no fixed overhead can be avoided

make buy net income

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4 0
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Answer:

Digital Fruit

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Total market capitalization = $800 million

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Market capitalization after the debt issue = $490 million ($800 - 310 million)

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3 0
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the total compensation cost is $75,000

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Here to determined the total compensation cost we simply multiplied the option granted with the fair value of each option so that the correct amount could come

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mel-nik [20]
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