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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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Why are discounted cash flow methods of making capital budgeting decisions superior to other methods?
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A pharmaceutical company in Belgium decides to expand into additional markets. It conducts research and decides to focus on mark
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C) standardization strategy

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ABC Software is a producer of educational software for children below the age of twelve. The company has operations in Switzerla
a_sh-v [17]

Answer:

C) The U.S.dollar became a vehicle currency after World War II when all of the world's major currencies were tied indirectly to the dollar because it was the most stable currency.

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8 0
3 years ago
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Garden variety flower shop uses 890 clay pots a month. the pots are purchased at $3.70 each. annual carrying costs per pot are e
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The answer is 231

Explanation:

Solution

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The Number of clay pots per month = 890

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=231

6 0
3 years ago
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