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Arte-miy333 [17]
3 years ago
7

An economy is experiencing a high rate of inflation. The government wants to reduce consumption by $36 billion to reduce inflati

onary pressure. The MPC is .75. By how much should the government raise taxes to achieve its objective? 
A. $6 billion
B. $9 billion
C. $12 billion
D. $16 billion
Business
1 answer:
Alisiya [41]3 years ago
5 0

Answer:

option c) $ 12 billion

Explanation:

Data provided :

Required reduction in consumption = $ 36 billion

MPC = 0.75

Now,

Total income  = Required reduction in consumption / MPC

or

the Increase in tax = $ 36 billion / 0.75

or

= $ 48 billion

the government can raise the tax = $ 48 billion - $ 36 billion = $ 12 billion

Hence, the answer is option C

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3 years ago
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will make 16 d
daser333 [38]

Answer:

For Jerry, the opportunity cost of building a fence is not making 2 dishes.

Explanation:

The opportunity cost refers to the benefit you lose when you choose one option over another one. In this case, the opportunity cost for Jerry when he decides to build fences is that he won't be able to make dishes. So, as he can build 7 fences or make 14 dishes in a day, the opportunity cost of building a fence is that he won't be able to make 2 dishes.

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2 years ago
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neonofarm [45]

Answer:

$14,000 under applied

Explanation:

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Therefore, for computing the overhead we simply multiply the material production with application rate percentage.

3 0
2 years ago
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Naddik [55]

Answer:

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Explanation:

Exports are goods produced in the domestic economy and sold abroad.

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I hope my answer helps you

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3 years ago
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