Answer:
Therefore, Increases in the tax rate decrease the government purchases multiplier
Explanation:
Given that
MPC = 0.8
Tax rate t = 0.25
tax rate is increases by 35%
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t). Here
So, GPM = 1 ÷ 1 - 0.8 × (1 - 0.25) = 2.5
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t)
MPC = 0.8
tax rate t = 0.35
GPM = 1 ÷ 1 - 0.8 × (1 - 0.35)
= 2.08333
= 2.083
Therefore, Increases in the tax rate decrease the government purchases multiplier.
<span>Third variables are common problems that add or introduce additional explanations for a reaction or occurrence. That means that when conducting test, the variable is not the only consideration of cause, and the effect of the third variable must be analyzed and isolated from the overall results, otherwise the data is influenced and inaccurate.</span>
Answer: If the commercial is TRUE that every additional bite of food tastes as good as the first, the marginal utility from consuming more of the advertised product must be CONSTANT. Option D.
Explanation:
Marginal utility is the additional satisfaction an individual gets, from consuming an additional unit of a product or service.
Therefore, in the scenario given above, if every additional bite of food tastes as good as the first, then the additional satisfaction is just as good as the preceding satisfaction. We can therefore say that the marginal utility gotten from consuming that product is constant.
Answer:
e. External opportunity
Explanation:
An external opportunity is an extension of the market due to some external development outside the industry. In this case, the cruise industry has benefited in a major way due to external developments.
Answer:
a. The discount rate is the
- interest rate at which banks can borrow reserves from the Federal Reserve.
The discount rate is the interest rate that the FED charges commercial banks, credit unions, or other financial institutions for lending them money.
b. If the Fed were to decrease the discount rate, banks will borrow
- more reserves, causing an increase in lending and the money supply.
Lowering the discount rate is considered part of an expansionary monetary policy since banks will borrow more money and lend more money to the public, increasing the money supply.
