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enyata [817]
3 years ago
7

An economy is experiencing a high rate of inflation. The government wants to reduceconsumption by $36 billion to reduce inflatio

nary pressure. The MPC is .75. By how much should thegovernment raise taxes to achieve its objective?A. $6 billionB. $9 billionC. $12 billionD. $16 billion
Business
1 answer:
Rainbow [258]3 years ago
4 0

Answer:

$12 billion

Explanation:

Data provided in the question:

Required reduction in the consumption = $36 billion

MPC = 0.75

Now,

Total income = [ Required reduction in the consumption ] ÷ MPC

= [ $36 billion ] ÷ 0.75

= $48 billion

Therefore,

The raise in tax = Total income - Required reduction in the consumption

= $48 billion - $36 billion

= $12 billion

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This year three manufacturers of mattresses have closed shop and there is only one mattress manufacture left. With few additiona
Rainbow [258]

Answer:

the supply will decrease causing an increase in pricing on mattresses.

Explanation:

Monopolism occurs when only one supplier produces a product with no other competitors. They control the supply and price of commodities.

Since other mattresse sellers have closed shop, the final seller will have monopoly of the mattresse market.

In order to maximise revenue he will reduce supply and increase prices so that customers will have no choice but to buy the scarce mattresse at higher price.

8 0
3 years ago
If the government increases its spending when the economy is expanding, automatic stabilizers _____ the government spending mult
SVETLANKA909090 [29]

Government increases its spending when the economy is expanding, automatic stabilizers increase the government spending multiplier.

Automatic stabilizers offset fluctuations in economic interest without direct intervention by policymakers. when incomes are excessive, tax liabilities rise and eligibility for authorities blessings falls, with no trade in the tax code or other legislation.

All through a monetary increase, automated stabilizers enable the government to chill off expansion or even fight inflation. while earnings fall, the identical stabilizers can position cash returned in the machine by means of tax refunds, welfare assessments, and other strategies to permit huge quantities of government spending.

Learn more about the government stabilizers here:brainly.com/question/25558588

#SPJ4

4 0
2 years ago
Helmert Federal, a financial institution, acquires its funds primarily from the deposits of its customers, and then uses these f
Viefleur [7K]

Answer:

Savings and loan association

Explanation:

Since, Helmert Federal, acquires its funds primarily from the deposits of its customers, and then uses these funds to make mortgage loans for individuals interested in purchasing real estate properties.Therefore we can say that

Helmert Federal is a Savings and loan association

8 0
3 years ago
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February
OverLord2011 [107]

Answer:

Debit Inventory $40,600

Credit Cash account $40,600

Being entries to recognize the cost of inventory

Explanation:

The initial recognition of inventory is to be done including all the cost incurred in bring inventory to the place of use or storage. These includes freight and the cost of the item. When inventory is purchased on account, entries required are Debit Inventory, credit account payable. Where cash is paid, the debit is same but the credit entry is posted to the cash account.

Hence total cost incurred (which is the cost of inventory)

= $40,000 + $600

= $40,600

6 0
3 years ago
A milestone is a typical measuring point used when establishing cost control. Which of the following DOES NOT accurately describ
KiRa [710]

Answer:

d. Milestones are developed during risk planning.

Explanation:

A milestone is a typical measuring point used when establishing cost control. Which of the following does NOT accurately describes the use of cost control milestones?Select one:a. Project managers and sponsors often decide the number of milestones jointly.b. Milestones are often identified in the project charter.c. Project managers can use their cash flow projections to determine the funding needed to reach each milestone.d. Milestones are developed during risk planning.

<u>ANSWER</u>

It is not correct that milestones are developed during risk planning but rather they are developed during Project budgeting where the deliverables are identified in terms of the cost to achieve them. Truly as stated in the scenario's options, Project managers can use their cash flow projections to determine the funding needed to reach each milestone. It is in the project planning phase that these milestones are established by Project managers and sponsors jointly.

5 0
3 years ago
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