Answer:
tax increased = $22.22 billion
so correct option is 3. increase taxes by $22.22 billion.
Explanation:
given data
real GDP = $500 billion
employment GDP = $300 billion
marginal propensity = 0.9
solution
we know here that Inflationary gap will be
Inflationary gap = Real GDP - Full-employment GDP
Inflationary gap = $(500 - 300) billion
Inflationary gap = $200 billion
and tax Multiplier is
Tax Multiplier = 
Tax Multiplier = -9
here negative sign means that decrease real GDP by $9
so tax should be increased by $1
so we can say that decrease real GDP by $200 billion
and tax should be increased = 
tax increased = $22.22 billion
so correct option is 3. increase taxes by $22.22 billion.
Answer:
The correct answer is option c.
Explanation:
If the Federal bank sells securities to a bond dealer, the dealer will need to pay back the Fed. This will cause a reduction in the dealer's bank's transaction deposits liabilities.
A reduction in deposits liabilities will further cause a reduction in the total reserves of the bank. Consequently, it will cause a decrease in the money supply. In this way, the federal reserve bank can curb inflationary pressures.
about $103 billion. is the answer
Answer:
Explanation:
Data provided in the question:
Accounts receivable = $14,000
Prepaid insurance = $2,600
cash = $10,400
supplies = $3,800
Debt investments (short-term) = $8,200
Now,
Balance sheet listing the items in the proper sequence is as follows
Current Assets Amount
Cash $10,400
Debt investments (short term) $8,200
Accounts receivables $14,000
Supplies $3800
Prepaid Insurance $2,600
=================================================================
Total current assets $39,000
