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 series of five constant-dollar (or real-dollar) uniform payment of $897.63 is made begining at the end of first year. Assume t
Vinil7 [7]

Answer:

The equivalent present worth of the series is $4,182.21

Explanation:

Fix periodic payments for a specific period of time are annuity payment and the payments made at the start of each period is known as advance annuity.

As per given data

Inflation per year = 18.3% / 5 = 3.66%

numbers of period = 5 years

Payment per period = $897.63

Use following formula to calculate the present value of annuity payments

PV of annuity = P x ( 1 - ( 1 + r )^-n / r

Where

P = Payment per period = $897.63

r = rate in of interest = 3.66%

n = numbers of periods = 5 years

Placing values in the formula

Equivalent present worth of the series = $897.63 + $897.63 x ( 1 - ( 1 + 3.66% )^-(5-1) / 3.66% )

Equivalent present worth of the series = $4,182.21

8 0
3 years ago
An investment that you bought for ____
scoray [572]
The answer is C and cannot be no other one because you bought it less that what you sold it for
6 0
3 years ago
San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost
muminat

Answer:

The average cost of ending inventory is $37,259 and cost of goods sold for october is 24,166

Explanation:

In order to calculate the average cost of ending inventory, we would have to calculate first the cost to retail ratio with the following formula:

cost to retail ratio=Total cost/Total retail

According to the given data, the total  cost=$61,425, and the total retail= $87,100, Hence:

cost to retail ratio=$61,425/$87,100= 70.5%

Also, we have to calculate the ending inventory at retail=$87,100+$1,700-$1,050-$37,00=$52,850

Therefore, the average cost of ending inventory= $52,850×70.5%

                                                                               =$37,259

To calculate the cost of goods sold for october we would have to use the following formula:

cost of goods sold=Beginning inventory+purchases-ending inventory

                              =$40,000+$21,425-$37,259

                              =$24,166

6 0
3 years ago
Xochi is a corporate PR consultant. She has many clients and would like to find a more efficient way to access and send informat
Gnoma [55]

Answer:

Enterprise social media network.

Explanation:

Enterprise social media network is the use of social network to link people who share common interest. Enterprise social network could be internal to a business such as Yammer, communicator which are meant to communicate among employees or external to a business such as use of Google+ or other social media network platforms which connects a business to it's customers.

The advantage of Enterprise social media networks is that they can be searched such that people can follow, tag or view activity. Here, users can check and send messages conveniently and efficiently to people compare to email alone.

With regards to the above scenario, Xochi should use Enterprise social media network tool to search and manage information.

5 0
3 years ago
Ramos Company has the following unit costs: Variable manufacturing overhead$15 Direct materials 13 Direct labor 17 Fixed manufac
zhannawk [14.2K]

Answer:

Unitary cost= $56

Explanation:

Giving the following information:

Variable manufacturing overhead $15

Direct materials $13

Direct labor $17

Fixed manufacturing overhead $12

Fixed marketing and administrative $11

Under absorption costing, the fixed overhead is allocated to the product cost:

Unitary cost= direct material + direct labor + variable overhead + fixed overhead

Unitary cost= 13 + 17 + 15 + 11= $56

3 0
2 years ago
Other questions:
  • What are the three main goals of the government in its attempt to keep the economy running smoothly?
    9·2 answers
  • What is dollar velocity
    5·1 answer
  • If this economy devotes one-half of its available resources to the production of blankets and the other half to the production o
    6·1 answer
  • The Medicare Supplement Right of Return Provision (Free Look Period) allows the buyer a period of ________ to return a policy an
    10·1 answer
  • "The risk-free rate of return is 4 percent, and the market return is 10 percent. The betas of Stocks A, B, C, D, and E are 0.85,
    13·1 answer
  • The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard
    8·1 answer
  • Please provide the steps used to solve this problem. A recording artist receives a royalty payment of 7% for each CD sold, and h
    5·1 answer
  • A couple is interested in purchasing residential investment property, and they have informed their sales associate that they wan
    15·2 answers
  • During the current year, the company had the following summarized activities:
    13·1 answer
  • The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sh
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!