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
Stolb23 [73]
3 years ago
10

In an economy, the government wants to decrease aggregate demand by $24 billion at each price level to decrease real GDP and con

trol demand-pull inflation. If the MPC is .75, then it could increase taxes by: 
A. $6 billion
B. $8 billion
C. $10 billion
D. $12 billion
Business
1 answer:
irinina [24]3 years ago
3 0

Answer:

option b is correct answer

Explanation:

given data:

MPC = 0.75

We know that

MPC +MPS =1

So, MPS = 1 - 0.75 = 0.25

We know that tax multiplier is given as

Tax multiplier = \frac{-MPC}{(1-MPC)}

                       = \frac{-0.75}{(1-0.75)}

                       = -3

 change in taxes= \frac{24}{-3} = -8Billion

therefore, tax increase by $8 billion.

option b is correct answer

You might be interested in
Nelson Mfg. owns a manufacturing facility that is currently sitting idle and is debt-free. The facility is located on a piece of
rodikova [14]

Answer:

The total cost to include in any project analysis should be $1,700,000, which can be apportioned as follows:

Land = $159,000/$617,000 * $1,700,000 = $438,088

Facility = $458,000/$617,000 * $1,700,000 = $1,261,912

Explanation:

The fair market values of the Land and Facility are $438,088 and $1,261,912, being the amounts at which the land and facility could be sold together to obtain $1,700,000.

In project analysis, the relevant cost to include is not the sunk cost of $617,000 ($159,000 and $458,000), but the opportunity cost.

$1,700,000 represents the opportunity cost.

The opportunity cost is the cost that would have been incurred assuming that the land and facility were sold at the first bid.  This represents the bid price for the land and facility.

5 0
3 years ago
What percentage of each dollar of sales affected net income given Sales of $120,000; Cost of Goods Sold of $70,000; Operating Ex
Romashka [77]

Answer: 25%

Explanation:

3 0
2 years ago
Larry is in charge of collecting customer service and satisfaction data for his company. He’s not sure which key groups in the c
Lelechka [254]

Answer:

What are the potential advantages and disadvantages of communicating customer satisfaction results to one group versus another group?

Explanation:

The answer above would be the most appropriate question because Larry does not know whether to share it with the employees, with senior management, or with the whole company.

Larry should try to gauge what kind of effect in the company would produce each one of this three alternatives. For example, sharing the information only with the employees might not seat well with managers, while the sharing the information only with management may be more effective but less transparent.

4 0
3 years ago
John Fare purchased $6,000 worth of equipment by making a $1000 down payment and promising to pay the remainder of the cost in s
vesna_86 [32]

Answer:

C $ 596.39

total payment          7,156.68

Interest expense     2,156.68

Explanation:

6,000  -  1,000 = 5,000 amount to finance

We will calcualte the cuota of an annuity of 6 years with semianual payment at 12% annual rate.

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $5,000.00

time   12 (6 years times 2 payment per year)

rate            0.06 (12% annual we divide by 2 to get semiannual)

5000 \times \frac{1-(1+0.06)^{-12} }{0.06} = C\\

C $ 596.39

The total amount paid will be the cuota times the time of the loan:

Total amount paid

596.39 x 12 = 7,156.68‬

The interest will be the difference between the total amount paid and the principal of the loan

Interest paid

total payment          7,156.68

principal                 (5,000)

Interest expense     2,156.68

7 0
2 years ago
Parties more interested in managerial accounting data than in financial accounting data include
zvonat [6]
<span>The phase of accounting that is concerned with providing information to managers for use within the organization.

</span><span>Production manager, VP of Business Planning, Controller</span>
8 0
3 years ago
Other questions:
  • 1. Read the following scenario and answer the question in 5-10 sentences.
    10·1 answer
  • A consumer products company is analyzing data collected and published by trade associations and general business magazines. This
    13·1 answer
  • A company recently moved to a new building. The old building is being actively marketed for sale, and the company expects to com
    9·2 answers
  • What is a federal and state fox on specific goods like gasoline tires airfare and cigarettes
    9·1 answer
  • In this business structure a common view of a firm is as a hierarchy organized around a set of functions. Each group has a core
    12·1 answer
  • Explain the difference between imports and exports.
    12·1 answer
  • Business Question
    15·1 answer
  • What is the value of $1000 par value 8 3/8% Marriott Corporation bond for the for each of the following required rates of return
    13·1 answer
  • QUESTION 1 of 10: According to the reading, this is the first step in market research:
    6·1 answer
  • When you market Medicare Advantage and Part D plans, what may you offer as a gift to induce enrollment in a plan
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!