1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
klio [65]
4 years ago
13

Suppose that the average wage earner saves 14% of her take-home pay and spends the other 86%. Also suppose that 86% of any amoun

t spent is always re-spent (with 14% saved). Estimate the impact that a proposed $30 billion tax cut will have on the economy over the long run due to the additional spending generated. (Round your answer to the nearest integer.)
Business
1 answer:
KIM [24]4 years ago
7 0

<u>Solution and Explanation:</u>

A 30bn$ tax cut will mean that there is 35bn$ of added take home pay available to all the wage earners.

This would simply mean that 14% of 30bn $ = 4.2bn$ would be added to the national savings and the rest 86% of 35bn$ = 25.8bn$ would be additional spending. This would inturn generate 25.8bn$ of added income (since someone's expenditure is someone else's income);

So out of this 25.8bn$ 14% will be saved and 86% will be respent; and this chain will continue;

So total added consumption expenditure due to the 30bn $ tax cut = 30\left(0.86+0.86^{2}+0.86^{3}+\ldots\right)

=30^{*}(0.86) /(1-0.86)=184.285 \mathrm{bn} \$ (Rounded off)

This is the total additional spending (consumption in an economy because of the stimulus provided by the tax cut of 30bn$);

The total impact on the economy over long run = 184bn$ of additional expenditure  

You might be interested in
Explain the connection between career advancement and the Four drive theory.
vovangra [49]

Answer:

Advancement is part of the <u>"drive to acquire."</u>

Explanation:

The 4 drive theory includes:

Drive to acquire: move up, gain status and respect (such as with a new prestigious job)

Drive to Bond: to form social relationships

Drive to learn: satisfy curiosity

Drive to defend: protection and security

3 0
3 years ago
As a revenue cycle auditor, explain how you will monitor compliance, denials, resubmitted claims, appeals for denied claims, and
goldfiish [28.3K]

Answer:

Ashley should review medical records for documentation compliance for CPT, Level II HCPCS, and diagnosis codes determining that regulations are being complied with as evidenced in medical record documentation; and evaluating appropriateness of billing and coding procedures.

Explanation:

7 0
2 years ago
A change in depreciation method is treated as a change in estimate that is achieved by a change in accounting principle, and is
viktelen [127]

A change in depreciation method is treated as a change in estimate that is achieved by a change in accounting principle, and is accounted for prospectively in the current and future periods.

The rules and regulations that businesses and other organizations must abide by when reporting financial data are known as accounting principles. These regulations standardize the terminology and procedures that accountants must employ, making it simpler to analyze financial data.

A unified set of accounting guidelines, methods, and standards known as generally accepted accounting principles (GAAP) were released by the Financial Accounting Standards Board (FASB).

The consistency that accounting principles establish enables more accurate and effective viewing of financial statements and reporting for businesses.

Learn more about accounting principles here

brainly.com/question/5399294

#SPJ4

3 0
2 years ago
The ________ is a form of business organization that is rapidly gaining popularity in the United States. The concept originated
zvonat [6]

Answer:

Limited liability company

Explanation:

A limited liability company (LLC) is an hybrid entity United States in which the characteristics of corporations and partnerships are combines. In this strategy owners are not personally liable for the firm's debts.

I hope you find this information useful and interesting! Good luck!

6 0
3 years ago
​Use the following to answer the questions. ​ Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in
Delvig [45]

Answer: Demand based pricing

Explanation:

Ray-Ban's plan of gathering information about the other brands sold in department stores, which includes their prices, would most likely be used in a demand based basis for pricing

Demand-based pricing, refers to the method of pricing whereby the fluctuations in the demand of consumers is considered.

Due to the flctuations, the prices are adjusted in a way that fits the changes in the values of the product.

4 0
3 years ago
Other questions:
  • Barlow Company manufactures three products—A, B, and C. The selling price, variable costs, and contribution margin for one unit
    11·1 answer
  • Shao Airlines is considering two alternative planes. Plane A has an expected life of 5 years, will cost $100 million and will pr
    9·1 answer
  • Journalize the entries to record the following selected transactions.
    15·2 answers
  • If the price of textbooks increases by one percent and the quantity demanded falls by one-half percent, then the price elasticit
    6·1 answer
  • Consider the different characteristics of the aggregate demand curve the statements below, determine which curve is being descri
    7·1 answer
  • ___________testing helps an organization determine early in the new-product process how the customer may perceive the product, a
    6·1 answer
  • In a recent meeting at​ work, Nick was asked to deliver the sales projections for the next month. Wanting to leave some room for
    15·1 answer
  • Can this setup be used to electroplate a layer of silver on a pair of wooden chopsticks??​
    7·1 answer
  • Natcher Corporation collects 35​% of a​ month's sales in the month of​ sale, 40​% in the month following​ sale, and 20​% in the
    10·1 answer
  • suppose the absolute values of the intercept and slope of the demand function are approximated to be 10 and 3 respectively. if t
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!