What happens when the government finances a job creation project through taxes and borrowing? If the government finances a job through taxes and borrowing there are higher taxes or interest rates and that usually causes a decline in employment. The higher taxes and interest rates are imposed because they government is using up the funds to fund their current project so the higher rates are how the government will get the funds back.
The answer is D all of these answers are correct.
Answer:
$50 billion
Explanation:
The net effect on aggregate demand of the additional investment spending will be derived by multiplying the increased spending by the Multiplier.
Where MPC is the marginal propensity to consumer, and
MPS, the marginal propensity to save.
Therefore the multiplier = 
= 2.5
Accordingly, the increase in aggregate demand as a result of the increase in the investment
= 2.5 * $20 billion
= $50 billion
Answer:
amortised loan
Explanation:
Letitia borrowed money from the bank, and according to the loan regulations, she has to pay an equal amount for the rest of two years, which shows that it is a type of amortised loan. In amortised loan customers pay back the loan in stages, and they pay that according to the criteria of the bank.
Answer:
buy $300,000 worth of bonds
Explanation:
Hope this helps:)...if not then sorry for wasting your time and may God bless you:)
