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
Ana offers Corey her vacuum cleaner for $300. Corey rejects the offer, so Ana promises to sell the vacuum cleaner to Abey. Howev
fenix001 [56]

Answer:

A

Explanation:

6 0
3 years ago
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $28,000. The estimated useful life was
jeyben [28]

Answer:

You get the highest net income in year 2 with  <u>Units-of-production  method.</u>

Explanation:

Schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods is attached.  

<u>Straight-line </u>

Depreciation expense 2nd year=$5.000=(Original Value -Residual Value)/Useful life

<u>Units-of-production </u>

Units of Production Rate=2.5=(Original Value -Residual Value)/estimated productive life

Depreciation expense 2nd year= 7250

<u> Double-declining-balance. </u>

Depreciation rate        20,00%        1/useful life *100

Depreciation expense 2nd year= 6720

Download xlsx
6 0
3 years ago
The demand and marginal revenue for a perfectly competitive firm are______, whereas the demand and marginal revenue for monopoli
exis [7]

The demand and marginal revenue for a perfectly competitive firm are horizontal , whereas the demand and marginal revenue for monopolists are downward

<h3>What is meant by marginal revenue?</h3>

The increase in revenue that comes from selling one more unit of output is known as marginal revenue. Although marginal revenue can remain constant at a certain level of output, it will eventually start to decline as the output level rises due to the law of diminishing returns. The increased total revenue produced by increasing product sales by one unit is known as marginal revenue and is a key topic in microeconomics.

An individual, group, or business that dominates and controls the market for a particular commodity or service is referred to as a monopolist. Due to the absence of substitute products or services and competition, the monopolist has the ability to command high prices. According to Irving Fisher, a monopoly is a market where there is "no competition," which results in a situation where one person or business is the only supplier of a specific good or service.

Hence, The demand and marginal revenue for a perfectly competitive firm are horizontal , whereas the demand and marginal revenue for monopolists are downward.

To learn more about marginal revenue refer to:

brainly.com/question/13444663

#SPJ4

8 0
1 year ago
Nathen’s home office
Rom4ik [11]

Answer:

Today, the Chinese own Armour and the famous Smithfield hams, together with the most quintessential American brand of all: Nathan's Famous hot dogs, with its iconic annual eating contest. ... It remains the largest total acquisition of a U.S. company by the Chinese.

Explanation:

4 0
2 years ago
The Amos Ball Printing Company was established in 1866. Currently, Amos Ball V is the CEO and chairman of the board. The company
-BARSIC- [3]

Answer:

A

Explanation:

As it is already mentioned that both businesses are different from each other, therefore, managing these two different business by having a one organizational structure will lead to confusion as in the case of question.

When two different business merge together this is called conglomerate integration.

Business merge together in order to enjoy the benefit of the term 'synergy' that means the whole is greater than sum of its parts. That bring definitely some advantages for the merged businesses.

But that too have disadvantages when the merged businesses failed to get benefits of the concept of synergy. That is, large businesses are difficult to manage, two different businesses require different set of management, and strategies.

3 0
3 years ago
Other questions:
  • Stanley is responsible for performing a variety of human resource activities such as posting job openings and reporting current
    14·2 answers
  • Pineapple International uses a job order costing system. Pineapple's accounting manager estimated that direct labor would be $2,
    6·1 answer
  • When we say that the classical model of decision-making specifies how managers should make decisions, this is another way of say
    8·1 answer
  • Although a money market account generally earns more interest than a savings account, it has the disadvantage of ____________.
    13·2 answers
  • According to the lecture, which of the following is INCORRECT?A. The U.S.-Canadian border was set by agreement at 49* N latitude
    14·1 answer
  • On May 19, Easy Repair Service extended an offer of $123,000 for land that had been priced for sale at $141,000. On June 4, Easy
    15·1 answer
  • Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch
    6·1 answer
  • The Firm X just paid a dividend of $1.26 per share on its stock. The dividends are expected to grow at a constant rate of 5% per
    10·1 answer
  • The adjusted trial balance of Sheri dan Company at December 31, 2022, includes the following accounts: Owner's Capital $16,000,
    15·1 answer
  • In most markets, _____ is determined by the interactions of numerous buyers and sellers.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!