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2 years ago

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If mpc = 0.5, a simultaneous increase in both taxes and government spending of $20 will?

1 answer:

ASHA 777 [7]2 years ago

7 0

In a condition where MPC is 0.5, a simultaneous increase in both taxes and government spending of $20 will increase GDP by $20. Therefore, the option C holds true.

<h3>What is the significance of GDP?</h3>

GDP of an economy is classified as a total of all the consumer goods and services produced in an economy during a given financial period, usually a year.

An increase in the taxes and government spending in an economy will lead to an increase in the GDP by the same rate. However, the proportion of change depends upon the MPC of an economy.

Therefore, the option C holds true and states regarding the significance of GDP.

Learn more about GDP here:

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The question seems to be incomplete. It has been added below for better reference.

If MPC = 0.5, a simultaneous increase in both taxes and government spending of $20 will _____.

A. decrease GDP by $20.

B. decrease GDP by $40.

C. increase GDP by $20.

D. increase GDP by $40.

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3 years ago

A quality control activity analysis indicated the following four activity costs of an administrative department:

Doss [256]

Answer:

total sales are the internal failure costs is 2%

Explanation:

given data

form to reduce errors = $15,000

customer complaints = 75,000

Verifying = 30,000

Correcting errors = 60,000

Total = $180,000

sales = $3,000,000

to find out

total sales are the internal failure costs

solution

we know here that internal failture cost is express as

internal failture cost = correcting error in form ...........1

internal failture cost = $60000

and

internal failture cost as % of total cost is here as

internal failture cost to sale = $\frac{internal\ failture\ cost}{sales}$ .......2

internal failture cost to sale = $\frac{60000}{3000000}$

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4 years ago

An investment will increase in value by 250% over the next 25 years. What is the annual interest rate which, when compounded qua

Olenka [21]

The annual interest rate will be 5.04% if the compounded quarterly provides this return.

<h3>What is annual interest rate?</h3>

The annual interest rate means the rate paid on investments without accounting for the compounding of interest within that year.

Let assume that PV = $100

Future Value = $100*(1+2.5)

Future Value = $100*3.5

Future Value = $350

Periods = Years*frequency

Periods =25 *4

Periods = 100

Quarterly Rate = (FV/PV)^(1/Periods)-1

Quarterly Rate = (350/100)^(1/100) - 1

Quarterly Rate = 1.01260642915 - 1

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Annual rate = Quarterly rate * Frequency

Annual rate = 0.01260642915 * 4

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Annual rate = 5.04

in conclusion, the annual interest rate will be 5.04% if the compounded quarterly provides this return.

Read more about annual interest rate

<em>brainly.com/question/15728540</em>

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