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ddd [48]
3 years ago
10

If the tax multiplier is minus1.5 and a​ $200 billion tax increase is​ implemented, what is the change in​ gdp, holding all else

​ constant? ​ (you may assume the price level stays​ constant.)
a. a​ $300 billion increase in gdp
b. a​ $300 billion decrease in gdp
c. a​ $133.33 billion decrease in gdp
d. a​ $30 billion increase in gdp
e. a​ $133.33 billion increase in gdp
Business
1 answer:
3241004551 [841]3 years ago
6 0
Tax multiplier = -1.5
Tax increase = $200 billion

Therefore, since the multiplier is a negative value, the GDP must have gone down.

GDP = Tax increase/Tax multiplier  = 200/-1.5 = $133.33 billion decrease.
Then, the correct answer is c.
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In one of the training sessions in your company, you notice several members are not from the United States. These members are al
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Go-round

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It is not uncommon that some people can be reticent and not contributing to discussion during a session. This does not mean that such people do not have anything to contribute but may just be shy .

One technique to encourage these members to express their opinion is by employing the go - round discussion method. This can give them the courage to voice their opinion when it is their turn to speak

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You and your client decide that her case is eligible and should be heard by the U.S. Supreme Court. You receive a writ of certio
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3 years ago
Deadweight loss is A. the reduction in consumer expenditure resulting from market failure. B. the reduction in economic surplus
never [62]

Answer:

The answer is: B) The reduction in economic surplus resulting from a market not being in competitive equilibrium.

Explanation:

Deadweight loss is an economic cost to society as a whole when market inefficiencies occur preventing it from reaching its equilibrium point. Market inefficiencies are caused by incorrect allocation of resources.

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5 0
3 years ago
West Corp. issued 25-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bond
Nataliya [291]

Answer:

YTM is 4.94%

Explanation:

The  yield  to maturity is the return on the bond throughout the bond's tenure and can be computed using rate function in excel as shown below.

=rate(nper,pmt,-pv,fv)

nper is the number of coupons the bond has left to pay(23 years*2)

pmt is the semiannual coupon of the bond=$1000*5.3%*6/12=26.5

pv is the curren price=$1000*105%=$1050

fv is the face value of the bond

=rate(46,26.5,-1050,1000)=2.47%

2.47% is the semiannual yield

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7 0
3 years ago
A portfolio is invested 22 percent in Stock G, 50 percent in Stock J, and 28 percent in Stock K. The expected returns on these s
Fittoniya [83]

Answer:

The expected return of the portfolio is 12.8%

Explanation:

A portfolio is invested 22% on stock G, 50% on stock J and 28% on stock K.

The expected return on stock G is 7%, on stock J is 13% and on stock K is 17%.

Weighted return on stock G

= 0.22*7%

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Weighted return on stock J

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Weighted return on stock K

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The expected return on the portfolio

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=(1.54+6.5+4.76)%

=12.8%

8 0
3 years ago
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