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
maks197457 [2]
2 years ago
13

Suppose the government increases taxes by ​$11110 billion and the marginal propensity to consume is 0.990. By how will equilibri

um GDP​ change?
Business
1 answer:
Helen [10]2 years ago
5 0

Answer:

- $1,099,890 billion.

Explanation:

Marginal propensity to consume (MPC) = 0.990

Tax multiplier = - MPC ÷ (1 - MPC)

= - 0.990 ÷ (1 - 0.990)

= - 9 9

change in GDP = Change in taxes × Tax multiplier

                         = $11110 × (-99)

                         = - $1,099,890

the minus sign shows a decrease

Hence, the change in equilibrium GDP is - $1,099,890 billion.

You might be interested in
Variable Costing
mart [117]

Answer:

a. $197,600

b. $163,400

c. $108,600

Explanation:

a. Manufacturing margin = Sales - Variable cost of goods sold

= $380,000 - $182,000

= $197,600

b. Contribution margin = Manufacturing margin - Variable selling and administrative expenses

= $197,600 - $34,200

= $163,400

c. Income from operations = Contribution margin - Fixed manufacturing costs -  Fixed selling and administrative expenses

= $163,400 - $57,000 - $2,800

= $108,600

4 0
3 years ago
How is having a security system for your home a risk
Iteru [2.4K]
<h2>The security system will alert authorities and deter  criminals, protecting your valuables and property. </h2><h2>The security system will give you peace of mind</h2>

Explanation:

Option 1: We cannot say that every visitor will be a thief or criminal. So a "home security system" is to stay alert from danger

Option 2: Burglars and home security system is to alert authorities and to protect our valuables. But home security system in addition can detect flood, fire, etc.

Option 3: Yes that's true. We feel like there is someone to protect us and our valuables. So it provides peace of mind.

Option 4: Why should we keep the doors unlocked? It will tempt for crime to happen. So this choice is invalid.

5 0
3 years ago
Which of the following would likely be covered under homeowners insurance but NOT by renter's insurance?a. Your basement floods,
VladimirAG [237]

Answer:

C

Explanation:

The answer is a tree branch breaks your bedroom window during a storm because this is covered by the homeowners insurance and not by the renters insurance

Renter’s insurance does not cover building or Structure on sites

7 0
3 years ago
An auction house puts a painting up for sale, which they think to be Pablo Picasso's "Acrobat and Young Harlequin." A Japanese b
Georgia [21]

Answer:

C. The buyer can rescind on the basis of mutual mistake.

Explanation: A bilateral mistake, also referred to as a mutual or common mistake, such mistake occurs when both parties are misinformed about the facts. A mistake of fact can lead to a requirement of a voided contract. This is the contract Will be nullified

5 0
3 years ago
Read 2 more answers
Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.
alina1380 [7]

Answer:

Explanation:

Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.

a. Cash used for purchase of office supplies, $2,300.

b. Cash provided from consulting to customers, $49,600.

c. Cash used for purchase of mining equipment, $81,000.

d. Cash provided from long-term borrowing, $68,000.

e. Cash used for payment of employee salaries, $24,800.

f. Cash used for payment of office rent, $12,800.

g. Cash provided from sale of equipment purchased in c. above, $23,300.

h. Cash used to repay a portion of the long-term borrowing in d. above, $44,000.

i. Cash used to pay office utilities, $5,100.

j. Purchase of company vehicle, paying $10,800 cash.

Required:

Calculate cash flows from operating activities.

Answer:

 

Explanation:

 

d. Ca

.v]l\[lf[p]f\fr;f7f,c7v;,v  ],\],t\],\,  [t b[' l] ] l,m 5 eg;l, t tp;l,t b2  

7 0
2 years ago
Other questions:
  • A television commercial for a new car carefully analyzes the car's features and price, relative to other available models. The a
    14·1 answer
  • Morrow Corp. has an EBIT of $925,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the c
    7·1 answer
  • Question on job application ( I believe that rules often limits my productivity? True or not true?)
    15·2 answers
  • Which of the following people would be considered unemployed by the Bureau of Labor Statistics? I. Mrs. X retires from her job a
    6·1 answer
  • What is the defintion of liquidity ​
    9·2 answers
  • A study conducted by Alberto Alesina and Lawrence Summers concluded that countries with​ ________ had lower inflation rates than
    9·1 answer
  • Exxon Mobil has entered into a pact with Gazprom, the world's largest natural gas extractor, to set up a processing unit in Baku
    9·1 answer
  • Garcia Corporation purchased a truck by issuing an $80,000, 4-year, zero-interest-bearing note to Equinox Inc. The market rate o
    5·1 answer
  • Based on the information in the table, which BEST explains the relationship between Country A and Country B?
    5·1 answer
  • Understanding how income is distributed within and across populations informs firms of different groups':_____.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!