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Sonbull [250]
4 years ago
11

Two​ countries, A and B​, both are currently in recession. The values of the MPS for A and B are 0.1 and 0.5 respectively. The g

overnments of both countries are planning to boost income through an expansionary policy of a tax cut of​ $1 billion.
Business
1 answer:
aksik [14]4 years ago
3 0

Answer:

Explanation:

The policy of tax cut will be less effective in country B than in country A since the value of the tax multiplier is lower in country B.

The multiplier effect refers to the increase in final income arising from any new injections.

Calculating the Multiplier Effect for a simple economy

k = 1/MPS

A = 1/0.1 =10

B= 1/.5=2

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Answer:

interest rates change! hope this helps! :)

Explanation:

5 0
3 years ago
There are two people in the economy: Martha and Charlie. There are two goods in the economy: books and wine. Martha is endowed w
balu736 [363]

Answer:

Charlie consumes 100 books and 25 wines at pareto-optimal allocation, is the right answer.

Explanation:

According to the question, book is denoted with b whereas, wine is denoted with w.

The Utility function of Martha is-  U\left ( b,w \right )=6b+24w

The Utility function for Charlie is- U\left ( b,w \right )=bw

P_{b} = $1 : P_{w} = $4

At pareto-optimality,

MRS_{bw}=\frac{P_{b}}{P_{w}}\\\frac{w}{b}=\frac{1}{4}\\4w=b\\

The budget constraint,

1.b+4.w=m=1\left ( 20 \right )+4\left ( 45 \right )\\b+4w=20+180\\4w+4w=200\\w=\frac{200}{8}=25\\\therefore b=100

Therefore, it may be said that Charlie must consume 100 books and 25 wine at pareto-optimal allocation.

3 0
4 years ago
Standard costs rather than actual costs should be used in transfer-pricing methods because:
inysia [295]

Answer:

E.inefficient producing divisions could pass on their inefficiencies to buying divisions in the transfer price.

Explanation:

The transfer price refers to that price in which the one firm is charging the prices from the other firm with respect to the service rendered. It is based on price charged in the market

To find out the transfer price  we considered the standard cost instead of the actual cost as the divisions may be have more actual cost as compare to the standard cost which resulted into the inefficiency that impact the buying based on the transfer price

7 0
3 years ago
Mary had a baby six weeks ago. She promised her employer that she would return to work. Now she needs to make child care arrange
Iteru [2.4K]

Based on Mary’s case, the best child care for Mary’s baby is something called family child care.

Family child care is <u>a type of child care located in a private family home where individuals provide care for children from infants to preschoolers. </u>

Family child care places always have a limit on the amount of children that they can take in at one time. However, this type of child care is generally the least expensive from all other types of child care.

4 0
3 years ago
What information is important when choosing a healthcare plan?
Nataliya [291]
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Type of plan and provider network. Do the health care providers, hospitals and pharmacies you prefer fall within the plan's network?

Premiums. How much will you pay per month for coverage?

Deductibles. What is the amount you must pay out of pocket before your coverage kicks in?

Copay or coinsurance

Coverage of Medicines




I hope it helped you!
8 0
4 years ago
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