1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rina8888 [55]
3 years ago
10

g If government spending rises at the same time it reduces tax rates, then:Group of answer choicesbusiness investment will likel

y fall.crowding out will never occur.interest rates will never rise.business investment will likely rise.
Business
1 answer:
DerKrebs [107]3 years ago
8 0

Answer: business investment will likely rise.

Explanation:

When government expenditure increases, and there's also a tax cut which means a reduction in tax rates, that s will lead to more demand for goods and services in the economy as people will have more disposable income to spend. The increase in government expenditure can also bring about a reduction in unemployment.

Reduction on tax rates coupled with the increase in demand will also be beneficial to businesses as there will be more investment in the economy.

You might be interested in
Suppose the gdp is in equilibrium at full employment and the mpc is .80. if government wants to increase its purchase of goods a
melamori03 [73]

<span>The marginal propensity to consume is a metric that quantifies the concept of increase in consumption with an increase in income. Mathematically MPC is defined as:</span>

MPC = Change in consumption / Change in income

Purchase of goods and services is considered as consumption, therefore:

Change in consumption = $16 billion

In the government’s perspective, taxes are considered as income, therefore the problem ask us to find for the necessary change in tax collection to maintain equilibrium GDP. Substituting the values in the formula:

0.80 = $16 billion / Change in income

Change in income = $20 billion

<span>Therefore the government should increase the tax collection by $20 billion.</span>
6 0
3 years ago
Read 2 more answers
Workman Software has 8.8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and cu
OverLord2011 [107]

Answer:

current yield 8.2089552%

YTM = 8.05%

effective annual yield = 4.92%

Explanation:

(A)

current yield = C/P

coupon payment / market price

8.8/107.2 = 0.082089552 = 8.2089552%

(B)

P = \frac{C}{2} \times\frac{1-(1+YTM/2)^{-2t} }{YTM/2} + \frac{CP}{(1+YTM/2)^{2t}}

First par being the present value of the coupon payment and second the redeem of the face value at the end of the bond.

market price 107.2

face value 100

time = 19

rate 8.8%

C = annual coupon payment 100 x 8.8% = 8.8

You solve this using a financial calculation and get the semiannual rate

YTM/2 = 0.040268160

then multiply by 2 to get the annual YTM

0.040268160  x 2 =

YTM = 0.08053632 = 8.05%

(C)

Effective Annual Yield

(1+HPR)^{365/time} -1 = EAY

where:

Holding period return:

\frac{Net \: Return}{Investment} = HPR

In this case:

coupon payment + redem - investment = net return

8.8 * 19 + 100 - 107.2 = 160

160/107.2 = 1.492537313

Then

(1+HPR)^{365/time} -1 = EAY

(1+1.142537313)^{\frac{365}{19\times365}} -1 = EAY

EAY = 0.049242509 = 4.9242509%

8 0
4 years ago
g An investor has invested $600,000 in a new rental property. Her estimated annual costs are $16,000 and annual revenues are $48
Tamiku [17]

Answer:

5.09%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator.

Cash flow in year 0 = $-600,000

Cash flow each year from year 1 to 29 = $48,000 - $16,000 = $32,000

Cash flow in year 30 = $32,000 + $500,000 = $532,000

IRR = 5.09%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

5 0
3 years ago
"In the corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in res
alexandr402 [8]

Answer: In the second statement

Explanation: Supply and demand are two market forces which determines the price of a commodity. In simple words, the amount of commodity that the consumers are willing to buy at a given price is called demand and the producer are willing to sell is called supply. The situation in which the two are equal is called equilibrium.

If the demand for a product is higher than its supply then its price will increase and vice versa.

Thus, from the above we can conclude that the second statement is correct.

3 0
4 years ago
Microsoft project is the most widely used project management software today and is an example of a ________ tool.
fomenos
Software documents tools
6 0
3 years ago
Other questions:
  • It is yyyyyyyyyyyyyyyyyyyyyyyyrrrrrrrttttt
    7·1 answer
  • Market research should be conducted:
    11·1 answer
  • Compare and contrast the potential for a perfectly competitive firm and a monopolistically competitive firm to earn positive eco
    12·1 answer
  • Help please. 45 points.
    13·1 answer
  • Between 1986 and 1998 the De Beers company controlled the world diamond market. De Beers and its affiliated association of produ
    9·1 answer
  • In the long run, imports will most likely be paid for with
    15·1 answer
  • Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold
    13·1 answer
  • What are the primary competitive forces impacting U.S. steel producers in general and the producers like Nucor that make new ste
    7·2 answers
  • Which of the following job duties would a person in marketing perform?
    7·1 answer
  • Croissants Corporation and Donuts Company transfer their assets to Edibles Inc., which manages the assets and distributes the pr
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!