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
Sonbull [250]
3 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]3 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

You might be interested in
On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bou
MA_775_DIABLO [31]

Answer:

Ceremony

Explanation:

Ceremony which can as well be reffered to as Rites and Rituals in an organization can be regarded as a pre-planned events which has social, formalities as well as latents purposes. This manifest purpose have effect on how the organization is working and in aiding the acheiving the organizational goals. It involves motivation of employee in the organization by giving bout award to the outstanding among them. For instance, On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bouquet and a plaque at a banquet every year is an example of a ceremony.

8 0
3 years ago
A marketing manager has just estimated that her firm's marginal revenue will become negative if a proposed price cut is made.
Viktor [21]

Answer:

D. More Units may be sold - but total revenue will be less than it would be at the higher price

Explanation:

Marginal Revenue (MR) represents the additional revenue that can be obtained if sales of a product are increased by one unit.

MR= is change in Total Revenue/Change in Total Output Quantity

In this situation as envisaged by the Marketing Manager, a price cut will lead to an increase in revenue based on more (marginal) units of the product sold at a lower price. The challenge, however, is that this increase in income will not be enough to offset the decrease in revenue that will result as a result of the price cut.

In other words, the organisation is better off selling fewer products or units at its current price than sell more (marginal units) at a reduced price.

7 0
3 years ago
The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Yea
Sergio [31]

Answer:

payback period = 4.86 years

Explanation:

given data

cash flows year 1 = $30,000 per year

cash flows year 5 = $35,000 per year

cash flows year 10 = $40,000 per year

investment cost = $150,000

to find out

payback period for this investment

solution

we get here accumulated inflows will be

accumulated inflows year 4 =  $30,000 × 4

accumulated inflows year 4 = $120,000

and

accumulated inflows year 5 = $120,000 + $35,000 = $155,000

and Initial investment = $150,000

so payback period will be

payback period = 4 years + (150,000 - 120,000)  ÷ 35,000 × 365 days

payback period = 4 years and 313 days

payback period = 4.86 years

3 0
3 years ago
What determines the amount of tax revenue generated from oil and natural gas produced in Texas?
erastovalidia [21]

Answer:

in Texas, the amount of oil and natural gas produced together with the market price determines the amount of tax to be generated.

7 0
3 years ago
In perfect competition, the demand faced by a single firm is perfectly rev: 06_26_2018 Multiple Choice elastic, because the firm
LuckyWell [14K]

Answer:

elastic, because many other firms produce the same standardized product

Explanation:

A good has perfect price elasticity when a change in price leads to an infinite change of quantity demanded.

A perfect competition is when there are many buyers of homogenous goods and services. The sellers are price takers; prices are set by the market force.

A perfect competition has perfect price elasticity because goods sold are standardised and identical with other goods in the market. If the seller increases its price, it's demand would fall to zero as consumers would shift demand to other subsituite goods.

I hope my answer helps you.

3 0
3 years ago
Other questions:
  • Cold Boxes Ltd. has 100 bonds outstanding (maturity value = $1,000). The nominal required rate of return on these bonds is curre
    15·1 answer
  • The plaintiff explains that she acted with the value of integrity when she started her own cleaning business. What did she claim
    8·1 answer
  • Name two steps Mexico’s government did to reform their economy.
    5·1 answer
  • When a firm produces one more unit of output the total revenue increases from $838 to $973, and the total cost increases from $5
    12·1 answer
  • A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city. The develo
    10·1 answer
  • ou want to buy a new sports car from Muscle Motors for $76,000. The contract is in the form of a 60-month annuity due at an APR
    9·1 answer
  • You want to have $66,000 in your savings account 9 years from now, and you're prepared to make equal annual deposits into the ac
    12·1 answer
  • A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in out
    12·1 answer
  • A company pays a constant 6.5 dividend on stock. The dividend will maintain for the next 12 years and cease forever. The require
    8·1 answer
  • What are the three factors of producrion and what role does each factor play in the production of goods and services
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!