Nlg gers number yes 34 to yes

what happens to aggregate output if both taxes and government spending are lowered by $300 billion and mpc

Papessa [141]

Answer:

The answer is:

1. consumers' expenditure increases by $150 billion

2. output will decrease by $600 billion

Explanation:

Tax impact:

$300 billion x 0.5

= $150 billion.

If taxes are lowered by $300 billion, consumers' expenditure increases by $150 billion because with lower tax, there is money money to be spent because their disposable income has increased.

Government spending impact:

$300/(1-0.5)

$300/0.5

=$600 billion.

Due to government spending that has increased by this amount, output will decrease by this amount too because government has directly competed with firms that should have used this money to increase the total output.

Therefore, net effect on total output is $300billion($600 - $300)

3 0

4 years ago

need asap plz!!! Questlon 5 of 10 Which statement best describes the idea of the law of supply? A . The supply of a product decr

Marrrta [24]

Answer:

D. The supply of a product increases as its price increases

Explanation:

Supply is the volume of a product or a service that sellers are willing to sell in the market at a stated price. The law of supply explains the relationship between price and the quantity suppliers are willing to sell.

The law asserts that as the price increases, suppliers will supply more quantities of a product. A price decrease will cause suppliers to supply a lower quantity. Suppliers are profits motivated. A price increase results in higher profits hence more supply.

8 0

3 years ago

On January 1, 2021, Splash City issues $320,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and

Lelechka [254]

Answer:

Journal entries are given below

Explanation:

Entry for the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021, are prepared as follows

January 01, 2021 (Splash City issues $320,000 of 8% bonds)

Debit Credit

Cash 320,000

Bonds payable 320,000

June 30, 2021 (Interest paid)

Debit Credit

Interest expense $12,800

Cash $12,800

Working

Interest expense = $320,000 x 8% x 6/12

Interest expense = $12,800

December 31, 2021 (Interest paid)

Debit Credit

Interest expense $12,800

Cash $12,800

Working

Interest expense = $320,000 x 8% x 6/12

Interest expense = $12,800

4 0

3 years ago

Instead of borrowing to buy something, pay cash by using a(n).

alina1380 [7]

I think the answer is D. Debit card

6 0

3 years ago

Read 2 more answers

If Congress increased the tax rate on interest income, investment a. and saving would increase. b. would increase and saving wou

vagabundo [1.1K]

Answer:

The correct answer is letter "D": and saving would decrease.

Explanation:

Increases in interest rates are not beneficial for economic growth. <em>By paying more taxes companies' revenues are reduced discouraging entrepreneurs to go on new ventures</em>. Besides, entities would be pushed to take measures such as lay-offs to compensate part of the losses due to paying more taxes. <em>If unemployment increases the household savings tend to decrease.</em>

6 0

3 years ago