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Answer:
For the Economist A the spending multiplier is = 8, the tax multiplier = 4, the increase in spending is = $4 billion, the tax cut is = $8 billion.
For the Economist B, the spending multiplier is =4, the tax multiplier = 2, the increase in spending is = $8 billion, the tax cut is = $16 billion.
Explanation:
Solution
Given that:
(1)The Economist A
The Spending multiplier = 8
In closing the output gap of $32 billion, required increase in spending = $32 billion / 8 = $4 billion
Thus,
The tax multiplier = 4
To close output gap of $32 billion, required decrease in tax = $32 billion / 4 = $8 billion
(2)The Economist B
Now,
The spending multiplier = 4
To close output gap of $32 billion, required increase in spending = $32 billion / 4 = $8 billion
So,
Tax multiplier = 2
To close output gap of $32 billion, required decrease in tax = $32 billion / 2 = $16 billion
Answer: personal
Explanation:
Based on the information given with regards to the question, this is a personal defense. A personal defense occurs when there's a breach of contract whereby there was issuing of the negotiable instrument.
In this case, Marissa writes the check to Cash but Larry then gives the check to Gary Graduate his nephew, without indorsing it, as a graduation gift
Answer:
Return on investment=12.81%
Explanation:
<em>Return on investment for a stock comprises of the capitals and dividend earned on the stock.</em>
<em>The capital gain is the difference between he cost of the shares when it was bought and the value when it is sold.</em>
Capital gain = (24.50 -22)× 500= 1250
Dividend earned for a year = 0.32× 500 =160
Total return = 1250 + 160 =1,410
Total return = $1,410
Cost of the shares= 11,000
Return on investment = total return/cost of shares× 100
=1,410
/11,000 × 100= 12.81
Return on investment=12.81%