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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.

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Demand pull inflation can be started by A. an increase in the price of oil B. a decrease in the quantity of money. C. an increas
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Answer:

Option "C" is correct.

Explanation:

An increase in government expenditure causes more money inflow on demand over supply.

6 0
3 years ago
Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2021.
dedylja [7]

Solution :

Current Assets

Cash                                                                     $ 20,000

Accounts receivable                                           $ 1,30,000

Less: Allowance for uncollectible accounts     - $ 13,000

Note receivable                                                    $ 100,000

Interest receivable                                                $ 3,000

Marketable securities                                           $ 32,000

Raw materials                                                       $ 24,000

Work in process                                                   $ 42,000

Finished goods                                                    $ 89,000

Prepaid Rent(Half of $ 60,000)                    <u>      $ 30,000      </u>

Total current assets                                             $ 4,57,000

Current Liabilities

Deferred revenue ($36,000/2)                           $ 18,000

Accounts payable                                                $ 1,80,000

Interest payable                                              <u>     $ 5000           </u>

Total current liabilities                                          $ 2,03,000

Working capital (4,57,000 - 2,03,000)           $ 2,54,000

8 0
3 years ago
Earl was known for driving 30 miles just to save a dollar on the price of case of his favorite carbonated beverage. Earl perceiv
Marianna [84]

Answer:

Money Paid

Overall Sacrifice

Explanation:

The two major dimensions of pricing are Monetary and Non- Monetary pricing.

Monetary pricing is the liquid asset like cash that is spent to acquire goods and services while the non monetary are other costs apart from money like time , stress , distance that it costs to acquire an item .

The individual perception of pricing has a way of affecting its choice when it comes to purchasing.

Earl did not consider the cost of stress in travelling 30 miles in order to save a $1 in his purchase decision as his mindset is programmed to the price paid being the real price  while most other customers considers the sacrifice involved before making a purchase decision.

3 0
3 years ago
Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's pr
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Answer:

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The values in this case are

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$450 in year two

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The irr gives 14.42% as shown in the spreadsheet attached

The cost of the investment of the investment project of $1300 equals the present values of its cash flows at 14.42% rate of return

Download xlsx
4 0
3 years ago
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iVinArrow [24]

Answer:

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3 0
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