<span>Consumer Financial Protection Bureau (CFPB)</span>
Answer:
The answer is: decrease taxes by $100 billion.
Explanation:
If the real GD is $200 billion, which represents only 40% of full employment GDP, then the government should try to increase consumer spending either by decreasing taxes or increasing government spending, or a combination of both.
In this case, I chose the tax decrease since government have budget limitations and they can only decrease taxes by so much before hitting a deficit. Additionally, when you have a large tax reduction, usually government spending either stays the same or decreases.
If the government decreases taxes by $100 billion, the marginal propensity to consume shall result in a $75 billion increase in consumption. According to the Keynesian Multiplier theory, that $75 billion should generate additional production, creating a virtuous cycle that should increase the real GDP in a larger proportion.
it should be noted that financial instruments are created to transfer risks that are difficult to predict.
<h3>What are financial instruments?</h3>
financial instruments can be regarded as contract that exist between individuals/parties which is accessing monetary value.
With these financial instrument , transfer risks in the financial domains can be predicted.
Examples of financial instrument are:
- cheques
- shares
- stocks, bonds
Learn more about financial instrument at;
brainly.com/question/1096688
With the information given in the problem, we know that 80% of the time the brand will be recognized.
As we know, 8/10 is the same thing as 80%.
The probability that exactly 8 people will recognize the brand is 100%.
Let me know how this works out.
