Why does a $1 increase in government purchases lead to more than a $1 increase in income and spending? A. Through the governm
ent purchases multiplier, the $1 increase in government spending will lead to a decrease in aggregate demand and national income, which will lead to an increase in induced spending. B. Through the government purchases multiplier, the $1 increase in government spending will lead to a decrease in aggregate demand and national income, which will lead to a decrease in induced spending. C. Through the government purchases multiplier, the $1 increase in government spending will lead to an increase in aggregate demand and national income, which will lead to a decrease in induced spending. D. Through the government purchases multiplier, the $1 increase in government spending will lead to an increase in aggregate demand and national income, which will lead to an increase in induced spending.
D. Through the government purchases multiplier, the $1 increase in government spending will lead to an increase in aggregate demand and national income, which will lead to an increase in induced spending.
Explanation:
We know,
Multiplier = Changing real equilibrium GDP ÷Change of government spending.
If we increase the multiplier, government spending will lead to an increase in aggregate demand that is potential GDP is higher than actual GDP and national income, which will lead to an increase in induced spending. Therefore option D is the correct answer as options A, B, and C do not meet the requirements.
C. Jamarcus is not required to file an income tax return because his gross income of $3,700 is well below the gross income threshold for a single taxpayer. However, he should file a taxreturn to receive a refund of the $481 previously withheld.
Explanation:
since Jamarcus income is %3700 and is below the gross income threshold for a single taxpayer so he should file a tax return to receive a refund of $481.
This section explicitly states that in order for interests to qualify for interest capitalization, the assets purchased through the loan must be getting ready for its intended use. E.g. if you want to capitalize the interests on the land, you must carry out activities necessary to prepare it for its intended use. Or if you purchase a machinery, you must be installing it in order to get it ready to produce.
