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natali 33 [55]
3 years ago
5

Suppose government belives the simple Keynesian model is descriptive of the current economy. Conress wants to lower Real Gdp by

$100 billion. The marginal propensity to consume is 0.80 Congress raises tax by:______
a. $28 billion
b. $15 billion
c. $29 billion
d. $22 billion
d. None of the above
Business
1 answer:
vichka [17]3 years ago
8 0

Answer:

d. None of the above

Explanation:

if the marginal propensity to consume = 0.80, the Keynesian's multiplier = 1 / (1 - MPC) = 1 / (1 - 0.8) = 1 / 0.2 = 5

that means that if Congress wants to decrease real GDP by $100 billion and the Keynesian's multiplier is 5, then it should raise taxes by $20 billion. This way -$20 billion (taxes take away money from the economy) x 5 = -$100 billion.

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George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufactu
ale4655 [162]

Answer:

$256,284

Explanation:

The computation is shown below:

First, Calculate the predetermined overhead rate per hour which equals to

=  (Estimated manufacturing Overhead cost ÷ estimated machine hours)  

= ($235,900 ÷ 20,800 hours)

= $11.34 per hour

So, the applied overhead or manufacturing overhead allocated equals to

=  Predetermined overhead rate per hour × actual machine hours

= $11.34 per hour × 22,600 hours

= $256,284

4 0
3 years ago
Total revenue (TR) is:
poizon [28]
I think it’s d. but im so sorry if im wrong!
3 0
3 years ago
Please help i will give brainliest
7nadin3 [17]

Answer:

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5 0
3 years ago
Which of the following describes the expected outcome of expansionary monetary policy in the short run?
Vaselesa [24]

Answer:

The correct answer is letter "A": higher employment, higher output, and a higher price level.

Explanation:

Expansionary policy is a macroeconomic concept that focuses on expanding the economy to counteract cyclical downturns. Expansionary policies can be used through monetary policy to expand the money supply or to increase government expending and tax cuts to stimulate the economy. Under this scenario, interest rates are lower and aggregate demand increases. In that case, employment, output, and price level will be higher. Though, the latter is dangerous since it could lead to high inflation.

7 0
3 years ago
A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in out
sergij07 [2.7K]

Answer: $400

Explanation:

M1 money supply simply refers to the monies which are liquid like the checkable deposits, traveler's checks, and the coins and currencies that are in circulation.

Therefore, based on the information given in the question, the bank's deposits that are part of M1 will be the $400 in checkable deposit.

3 0
3 years ago
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