An increase in spending of $25 billion increases real gdp from $600 billion to $700 billion. The marginal propensity to consume must be "4".
<h3>
What do you mean by Marginal Propensity to consume?</h3>
The marginal propensity to consume is refers to as the proportion of any change in income that is spent on consumption.
In economics, this term is used to refer to the measurement made in order to determine consumption when the rent is increased by one unit. This measurement is nothing more than a mathematical relationship to calculate how people invest in consumption or save the income that is increased.
Calculation:
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Answer:
option (d) $1.40 taxable income rather than $1.00 tax-exempt income
Explanation:
The taxpayer would prefer option (d) $1.40 taxable income rather than $1.00 tax-exempt income
The above statement will be chosen because in this case the after tax income will be greater than the tax exempt according to the condition given in the question
Given:
Marginal Tax bracket = 25%
thus,
Taxable income = $1.40
Tax = $1.40 × 0.25 = $0.35
Therefore,
The net income = Taxable income - Tax = $1.40 - $0.35 = $1.05
and,
$1.05 > $1.00
Answer:
explain all background information first
Explanation:
Imagine how bad the work schedule is for a manager to be worried about their employees' reaction. When you have to deal with very bad solutions and their consequences, you must do it in a proper manner so things don't get worse. By explaining the background information first, Heather will be able to explain why she is making that decision and has a better chance of her employees understanding that it is something necessary. We are not told what the changes are or shy the changes are being made, but we know that they are very serious.
Heather must deal with her employees' tolerance levels, and their is a difference between absolute and relative tolerance. Absolute tolerance refers to tolerating other people's behavior just because you are polite and you don't want to cause more trouble, and relative tolerance refers to tolerating a bad situation because you know that there is valid cause for it. Heather must rely on her employees' relative tolerance.
Answer:
The number of units started into production is 7,000.
Explanation:
Number of units started into production = Units transferred out + units of ending work in process - units of beginning work in process
= 9,000 + 2,000 - 4,000
= 7,000
Answer: 17.5%
Explanation:
The equilibrium will occur where the money demanded equals to the money supplied i.e Ms = Md
From the question, the supply of currency by the Central Bank = 40
Money Supply (Ms) = m × B
where m = Money multiplier = 2.5
Note that the money multiplier can also be equal to 1/rr in situations wherebt the consumers do not hold any currency.
rr = reserve ratio, = 0.4
B = monetary base = 40
Note that the monetary base here is 40.
Since reserve ratio = 0.4, therefore
m = 1/0.4 = 2.5
Therefore, Ms = m × B
= 2.5 × 40
= 100
Thus Money supply Ms = 100.
Money demand(Md) = Y(0.3 - i),
Y = income = 800
i = interest rate
Since (Md) = Y(0.3 - i),
Md = 800(0.3 - i)
Equate the equation for the money demand and money supply together.
Ms = Md
100 = 800(0.3 - i)
100 = 240 - 800i
800i = 240 - 100
800i = 140
i = 140/800
i= 0.175
= 17.5%
Therefore, the interest rate is 17.5%
