If the government cuts taxes by $40 billion, this puts more money in consumers' pockets. Given an MPC of 0.8, this means they will spend $32 billion
Evaluating :
(0.8 × $40 = $32).
The correct answer is an increase of $32 billion.
GDP:
Gross domestic product (GDP) is a measure of the final goods and services produced with a specific region over a specified period of time. It is computed as follows:
GDP = Consumption + Government Spend + Investment + Net Exports
What is Marginal Propensity to Consume (MPC)?
Marginal propensity to consume (MPC) is measured as the portion of an increase in pay that a consumer would spend on goods and services as opposed to saving. Essentially, it is measuring how sensitive consumption in an economy is to increases in income. MPC is important in economics because it illustrates the effect that increased government spending has on the economy.
Learn more about Marginal propensity :
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Solution:
(1) Maximum possible $25,000 deduction before phase-out
(2) Maximum deduction phase-out is $22,500
[($145,000 AGI - 100,000) × 0.5]
(3) Current year overall loss $2,500 (1) - (2)
(4) Rental loss in current year $8,000
(5) Current year leasing deficit of 2,500 dollars, Lesser of (3) or (4)
Passive loss carry forward $5,500 (4) - (5)
Answer: Born global
Explanation:
Born global is described as businesses which start with the intention of main their business already an international, as they target to do business globally. Many organizations start up their activities with the intentions of doing business globally, they focus their market to the world at large than just doing trade locally.
Answer:
a. following-up with his customer.
Explanation:
Based on the scenario being described within the question it can be said that Lewis is following-up with his customer. This is when a salesperson contacts a customer some time after their purchase in order to make sure that they are happy with their purchase. This allows the salesperson to address any problems or concerns that the customer may have with their product. All with the goal of trying to capture the loyalty of the customer, since a customer that is happy with an initial purchase is more likely to return.
Answer:
Demand for products sold at a store in a neighborhood with other stores is probably elastic
Explanation:
A demand is considered as 'Elastic' if a change in price of the product would strongly affect the quantity of the demand.
Competitors who offer similar products than your organization tend to reduce the amount of demand that come to your store. Existence of competitors give the consumers the options to choose and move around in order to seek the best offers that they can.
As a result, the shoe stores in Joey's neighborhood will have to constantly adjust their price in order to make their products seems appealing compared to the rest of the competitors. This make the demand in Joye's store keep fluctuating depending on the performance of other competitors.
