1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kupik [55]
3 years ago
5

Describe Fiscal Policy. Consider an economy where government charges 20% of an individual’s income as taxes (i.e. T = 0.2Y). Con

sider the consumption function of the form C = e + f(DI), using the proportional tax policy mentioned above, calculate the multiplier for this economy in terms of MPC and taxes introduced. Use DI = Y-T(10 points)
Business
1 answer:
emmasim [6.3K]3 years ago
3 0

Answer:

Fiscal policy refers to the economic policy that is used by the government of a particular nation to influence various macroeconomic variables such as inflation, employment, demand and services and economic growth through government spending and taxes.

Determination of multiplier:

ΔY = [MPC (ΔY - 0.2ΔY)] + ΔA

ΔY = MPCΔY - 0.2MPCΔY +  ΔA

ΔY - MPCΔY + 0.2MPCΔY = ΔA

ΔY [1 - MPC + 0.2 MPC] = ΔA

\frac{\Delta Y}{\Delta A}=\frac{1}{1 - MPC + 0.2MPC}

Multiplier=\frac{1}{1 - MPC + 0.2MPC}

You might be interested in
"A retail store owner offers a discount on product A and predicts that the customers would purchase products B and C in addition
hammer [34]

Answer:

Data mining

Explanation:

Here are the options to this question :

a. Data query b. Simulation c. Data mining d. Data dashboards

Data mining is used to extract useful data from a larger set of any raw data. It is used to find relationship among data.

The store owner found a relationship between A, B and C.

8 0
3 years ago
What type of promise to pay does a promissory note represent?
Sonja [21]
I’m not I’m sorry need points
3 0
2 years ago
Read 2 more answers
\Why is it important to consider scholarships and grants before loans to pay for higher education?
Shalnov [3]

Answer:

Explanation:

Scholarships and grants are monies that are given to the student for education. You DO NOT have to pay them back.

Loans can also be given for education costs but you DO have to pay them back.  So, obviously, you want scholarships and grants before loans.

4 0
2 years ago
AJ Manufacturing Company incurred $54,000 of fixed product cost and $43,200 of variable product cost during its first year of op
kvv77 [185]

Answer:

Explanation:

The preparation of the income statement is presented below using the generally accepted accounting Principles (GAAP) :

Sales $176,000

Less: Cost of goods sold ($97,200)         ($54,000 + $43,200)

Gross margin $78,800

Less: Selling and administrative cost ($31,000)    ($17,200 + $13,800)

Net income $47,800

Hence, we considered all the given information

8 0
3 years ago
The higher wages college graduates receive are primarily due to discrimination Answer A: discrimination A differences in working
Naya [18.7K]

Answer:

A differences in working conditions

Explanation:

The working conditions of the employees matters a lot when it comes to determine the wages of the employees. There is always a discrimination made based on the working condition, the level of education received by the employees and many more.

Thus the higher wages received by the college graduates is mainly due to the working condition and the responsibilities that they are going take while working in an organization when compared to their sub-ordinates.

3 0
3 years ago
Other questions:
  • Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded s
    15·1 answer
  • Rachel is deciding whether to remain in the home she has lived in for the past ten years, which is located very near her work, o
    6·1 answer
  • It is important to use real rather than nominal gdp figures when making comparisons of output across time periods because the re
    9·1 answer
  • Spencer Supply’s stock is currently selling for $60 a share. The firm is expected to earn $5.40 per share this year and to pay a
    7·1 answer
  • Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statem
    13·1 answer
  • What can we interfere from the text text in pic
    13·1 answer
  • The CEO of Skyco, a publicly traded company that has been earning below-average returns, has been publicly criticized by shareho
    6·1 answer
  • Please help me to answer these questions
    13·1 answer
  • You are the head of the central bank and you want to maintain a 2 percent long-run inflation rate. Suppose that velocity is cons
    14·1 answer
  • If idle resources are put to use and more output is produced in an economy, there will be:____.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!