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Sonja [21]
3 years ago
8

If real GDP is $200 billion, full employment GDP is $500 billion, and the marginal propensity to consume is 0.75, then Congress

should decrease taxes by $50 billion. increase government purchases by $50 billion. decrease government purchases by $50 billion. decrease taxes by $100 billion. increase government purchases by $300 billion.
Business
1 answer:
Anuta_ua [19.1K]3 years ago
3 0

Answer:

The answer is: decrease taxes by $100 billion.

Explanation:

If the real GD is $200 billion, which represents only 40% of full employment GDP, then the government should try to increase consumer spending either by decreasing taxes or increasing government spending, or a combination of both.

In this case, I chose the tax decrease since government have budget limitations and they can only decrease taxes by so much before hitting a deficit. Additionally, when you have a large tax reduction, usually government spending either stays the same or decreases.

If the government decreases taxes by $100 billion, the marginal propensity to consume shall result in a $75 billion increase in consumption. According to the Keynesian Multiplier theory, that $75 billion should generate additional production, creating a virtuous cycle that should increase the real GDP in a larger proportion.

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Dmitri is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: B
kondaur [170]

Answer:

Decision on the margins

Explanation:

Pool time seems to be having a greater effect at the moment, it makes sense for his to spend a bit more time in the pool and a bit less time on the bike.

However, this does not mean that it makes sense for her to spend all his time in the pool and no time on the bike. If he cut out all training on the bike, the value of a little bit of bike training might be higher than the value of the last hour of pool training. Dimitri does not treat biking versus swimming as an all-or-nothing decision. He makes small changes at the margin in the number of hours spent training for each activity.

Also they both realise that his time is fixed (20hrs) and anytime he wants to spend extra on one activit, is time he cannot spend on another (opportunity cost).

They are both trying to improve Dimitri's total time (exploiting opportunities to makes themselves better off).

An assumption that Dimitri realises that as he spends more time in the pool improving his swim time, his run and cycle times will suffer. As he swims more, his improvement is likely to slow down, while spending less time on cycling and running will cost him progressively more in terms of time.

Conclusion Dimitri is looking at the margins. His wife on the other hand, is not, she is ignoring the interaction, may be forgetting the decreasing improvements in swim and increasing deterioration in the other 2 legs.

4 0
3 years ago
Read 2 more answers
Can Anybody Help? Need All 4 Questions Answered
Marat540 [252]

Answer:

1. It is ethical for her to list her job duties in great detail as she ahs still done the job in question.

2. It is unethical to embellish her job responsibilities as she includes responsibilities in her job that she has not done and has therefore lied to the job she is applying for.

3. Problems she may face is being fired for lying, made to do work that is not in her capabilities and can potentially damage the work assigned and job in general, as well as trouble by her colleagues and boss

4. She can include attributes that make her a promising individual. For example she states she can "learn on the fly" and thus can write in her resume that she is a quick learner and can adapt easily to her surroundings.

3 0
3 years ago
Maximum diversification benefit can be achieved if one were to form a portfolio of two stocks whose returns had a correlation co
lisov135 [29]

Answer:

-1.0

Explanation:

Diversification in a portfolio refers to spreading investments in such a way so as to minimize risk.

The correlation coefficient r between two securities signifies how return from one security is related with another security. For example, two securities of the same sector may move in the same direction or positively correlated as in if price of one rises, the price of other rises too maybe not by the same margin.

In case of a negative correlation, the security returns move in opposite directions i.e the securities are least related to one another.

Maximum diversification is achieved when r is equal to -1 i.e the two stocks move in opposite direction by the same magnitude.

4 0
3 years ago
Match each of the terms below with their definitions and descriptions
Brums [2.3K]
The answer is B :)))
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3 years ago
In 2016, the population of the United States was approximately 325 million people, with an annual growth rate of approximately 0
Tpy6a [65]

Answer:

The population would be 1318 million

Explanation:

Acording to the formula

<h2>Nt =Noe^{T * r}</h2>

Nt = population size in generation t

No =  initial population size.

e= number e

T= number o years

r = rate

<h2>Nt =325 x ( e^{200 * 0.007})</h2><h2></h2><h2>Nt =  1318 millions</h2>

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3 years ago
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