Answer:
$39.06 billion
Explanation:
MPC = Marginal propensity to consume = 83%, or 0.83
MPS = Marginal propensity to save = 17%, or 0.17
Tax multiplier = - MPC/MPS = - 0.83/0.17 = - 4.88235294117647
Tax cut = - $8 billion
Effect of $8 billion tax cut = Tax multiplier * Tax cut = (- 4.88235294117647) * (- $8 billion) = $39.06 billion
Therefore, $39.06 billion will be circulated through the economy by that single $ 8 billion tax cut.
Answer: If the Japanese Yen appreciates against the United States dollar, Japanese consumers gain by a decrease in the dollar price of exports to the United States.
Explanation:
Currency appreciation is the increase in the value or worth of a currency in relation to another currency. There are several reasons for the appreciation of currencies and these include interest rates, government policy, business cycles and trade balances. The value of a currency changes based on its supply and demand in the forex market. These fluctuation in values makes firms and traders increase or decrease their financial assets and profit off them.
An appreciation results in cheaper exports and expensive imports. If the Japanese yen appreciates, it means lesser amount would be needed to purchase a dollar thereby resulting in Japanese businesses gaining a reduction in the price of exports to the United States.
Answer:
The answer is "$32,000"
Explanation:
Coverdell mutual funds must be paid until the beneficiaries are 18 years old. The 16-year-old would be only eligible for two-year contributions (aged 16 and 17). The 14- year old is eligible for the four years' payment (age 14, 15, 16, 17). In five years, it would therefore be a total of $32,000 in the following:
Total
Answer:
... then the appropriate action for the Federal Reserve to take is a <u>DEFENSIVE</u> open market <u>SALE</u>, everything else held constant.
Explanation:
Defensive open market operations are carried out to temporarily offset fluctuation in the market of securities (either too much or too little demand, or supply).
A defensive pen market sale will lower the supply of reserves without having to change the current interest rates. If it doesn't do anything, the interest rates will probably decrease.
Answer:
is a class of normative, teleological ethical theories that holds that the consequences of one's conduct are the ultimate basis for any judgment about the rightness or wrongness of that conduct.