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Flauer [41]
1 year ago
15

If the marginal propensity to consume (mpc) is 0.75 and if policy makers wish to increase real gdp by $300 million to fight a re

cession, then by how much would taxes have to change?
Business
1 answer:
marshall27 [118]1 year ago
7 0

The taxes have to change by $ 50 million.

<h3>What is marginal propensity?</h3>

In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.

Marginal propensity to consume is a component of Keynesian macroeconomic theory and is calculated as the change in consumption divided by the change in income.

MPC is depicted by a consumption line, which is a sloped line created by plotting the change in consumption on the vertical "y" axis and the change in income on the horizontal "x" axis.

To learn more about MPC sums, refer

brainly.com/question/20376297

#SPJ4

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Strait co. manufactures office furniture. during the most productive month of the year, 3,000 desks were manufactured at a total
jek_recluse [69]
Using High-Low method:x 1 = 1,125 ( low units ),  x 2 = 3,000 ( high units )y 1 = 38,000 ( low cost ), y 2 = 59,000 ( high cost ).Formula is: y = m x + b, where b represents Fixed costs.  m = ( y2 - y1 ) / ( x2 - x1 ) = ( 59,000 - 36,000 ) / ( 3,000 - 1,125 ) = 11.259,000 = 11.2 * 3,000 + bb = 59,000 - 33,600 = 25,400y = 11.5 x + 25,400Answer: Total fixed costs are $25,400.
 


7 0
4 years ago
What was the average annual risk premium on small-company stocks for the period 1926-2014?
galben [10]

The average annual risk premium on small-company stocks for the period 1926-2014 was 12.9%

<h3>What is Risk premium?</h3>

A premium is a proportion of overabundance return that is expected by a person to remunerate being exposed to an expanded degree of risk.

The contributions for every one of these factors and a definitive understanding of the risk premium worth contrasts relying upon the application as made sense of in the accompanying segments.

No matter what the application, the market premium can be unpredictable as both involving factors can be affected free of one another by both repetitive and unexpected changes. This implies that the market premium is dynamic in nature and consistently evolving.

Therefore annual risk premium was as 12.9%.

Learn more about Risk here:

brainly.com/question/27754423

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3 0
2 years ago
At the beginning of the year, a firm has current assets of $327 and current liabilities of $231. At the end of the year, the cur
nata0808 [166]

Answer:

Change in the Net working capital is $124

Explanation:

Working Capital can be define as the net amount between the Current Asset and Current liability of a particular year

It is better written as Working capital = Current Asset - Current Liabilities.

At the beginning of the year, the working capital is = $327 - $231 = $96

At the end of the year, the working capital is = $491 - $271 = $220

Change in Net working capital = $96 - $220

Change in Net working capital = $124

7 0
4 years ago
What is accounting receivable?<br>​
tankabanditka [31]

Answer:

Is the balance of money due to a firm for goods or service delivered or not yet paid

Explanation:

Account are recorded on balance sheet on current account

5 0
3 years ago
Which one of the following correctly describes the dividend yield? Multiple Choice Next year's annual dividend divided by today'
Debora [2.8K]

Answer:

Next year's annual dividend divided by today's stock price

Explanation:

Dividend yield is a financial ratio which is used by investors to assess a company's annual dividend payout in comparison of its stock price. The formula for dividend yield ratio is :

Annual dividend / Stock price

The annual dividend used is the most recent dividend paid or is to be paid to shareholders of the company. It enables investors to assess the return on their investment in each stock price. Dividend yield increases when companies pay more dividends. It is a good signaling effect for shareholders.

4 0
4 years ago
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