<span>The federal government
could avoid creating a new federal agency for collecting the tax. The federal government would have to create a new collection
system for a national VAT. A national VAT would be less likely
to cause jurisdictional conflict between the federal government and the
states because states do not depend on VAT as a source of revenue.</span>
Answer:
Round 2 adds =$800
Round 3 adds =$640
Explanation:
Marginal propensity to consume is the aggregate increase in spending by a consumer for each additional $ they earn. So a Marginal Propensity to consume of 0.8 means that each consumer in the economy consumes 80% of any additional dollars they earn, while they save 20% which is also the marginal propensity to save that is 0.2
So First round adds $1000
Second round adds $1000 * 0.8 = $800 as people use 80% of $1000
Third round adds $800 * 0.8 =$640 as people use 80% of $800
while the remaining is saved.
Hope that helps.
Answer:
$10,856
Explanation:
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond.
According to given data
Face value of the bond is $10,000
Coupon payment = C = $10,000 x 4.8% = $480 annually = $240 semiannually
Number of periods = n = 22 years x 2 = 44 period
YTM = 4.2% annually = 2.1% semiannually
Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $240 x [ ( 1 - ( 1 + 2.1% )^-44 ) / 2.1% ] + [ $10,000 / ( 1 + 2.1% )^44 ]
Price of the Bond = $6,848.64 + $4007.4 = $10,856.04