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Sindrei [870]
4 years ago
15

If current output is $40b less than Potential GDP, how much would congress need to decrease taxes by to correct this short-run e

conomic fluctuation given that the MPC is 0.75?
Business
1 answer:
malfutka [58]4 years ago
6 0

Answer:

Reduction in Tax Needed = $ 13.33

Explanation:

Tax Multiplier shows magnitude of change (decrease) in income due to tax change (rise) .

Tax Multiplier = ΔY / ΔT = - MPC / (1- MPC)

Given : Change in Income needed [ΔY] = 40

MPC = 0.75

Putting in formula ;

40 / ΔT  = - 0.75 / (1- 0.75)

40 / ΔT = - 0.75 / 0.25

40 / ΔT  =  - 3

ΔT = - 40/ 3

ΔT = - 13.33

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Budweiser is well known for the use of humor in its ad campaigns for Bud Light beer. Based on the use of humor in advertising fo
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Answer:

Explanation:

Low involvement. The major reason for the advertisement is not so that there will be high involvement buyer, with information about the product (beer) to be produced deeply to form strong attitudes, but the advertisement is basically for entertainment and also so that good feeling can be associated about the advert and product (beer). In fact the major disadvantage about the use of humour in advert is that people can remember the advert and forget the brand or product been advertised.

4 0
3 years ago
Michael's, Inc., just paid $1.85 to its shareholders as the annual dividend. Simultaneously, the company announced that future d
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Answer:

$45.85

Explanation:

Price today = Next year dividend / (Rate of return - Dividend growth rate)

Next year dividend = $1.85 * 1.041% = $1.92585

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Therefore, you will be willing to pay $45.85 today to purchase one share of the company's stock.

4 0
3 years ago
Morgan is the manager of a local circuit city and has put up signs promoting the store's frequent shopper card program. morgan's
inessss [21]
That would be a programmed decision.
3 0
3 years ago
Realizing that it was time to invest in an updated information system, a young ceo made the following announcement in his weekly
77julia77 [94]

Answer:

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7 0
3 years ago
Read 2 more answers
Find the Net Cash Flow of Operating activities?Engineering Wonders reports net income of $53 million. Included in that number is
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Answer:

Total cash flow from operations        $58.3 million

Explanation:

We can calculate the net cash flow effect from operating activities by making the following adjustments.

Net Income                                        53 m

Add: depreciation                              4.1 m

Less: Gain on asset disposal             (1.9 )m

Add: Reduction in receivables          2.5 m

Less: Reduction in payable               (2.7)m

Add: Reduction in inventory              3.3 m

Total cash flow from operations        $58.3 million

Gain on asset is part of the investing activities cash flow.

Hope that helps.

7 0
4 years ago
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