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egoroff_w [7]
3 years ago
6

If the marginal propensity to consume is 0.6, the marginal propensity to save is 0.4, and government spending increases by $2 bi

llion at the same time taxes rise by $2 billion, equilibrium income will:
Business
2 answers:
WINSTONCH [101]3 years ago
7 0

Answer: Equilibrium income will increase by $800 million

Explanation:

When taxes rises  means tax rate increased, an increase in tax rate decreases consumption and income. Increase in Government spending increases  income

the increase Government Spending by $2 Billion will increase income by $2 Billion.  An increase in taxes will decrease Consumption by $1.2 Billion ($2 billion x 0.6)

Equilibrium income will increase by $800 million (2 billion - 1.2 billion)

zvonat [6]3 years ago
4 0

Answer:

increase by $2 billion

Explanation:

If the government increases both spending and taxes by the same amount, equilibrium income will increase by the amount of the government spending which will result in an increase in total aggregate demand.

If we follow a Keynesian analysis, we can determine the net effect:

change produced by government spending increase = change G / G multiplier = $2 / 0.4 = $5 billion

G multiplier = 1 - MPC or MPS

the change produced by taxes = - (MPC x change T) / MPS = - (0.6 x $2 billion) / 0.4 = -$1.2 billion / 0.4 = -$3 billion

net effect = $5 billion - $3 billion = $2 billion

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A company that loans money to an organization is a(n):______.a. supplier.b. lender.c. shareholder.d. investor.
fomenos

Answer:

lender.

Explanation:

A lender is an individual or company that makes funds available another com[any. Lenders receive fixed payments based on a predetermined rate at an agreed time.

A shareholder is the owner of a company. A shareholder is a person who buys the stock of a publicly traded company

Supplier provides raw materials needed for production to a company

An investor can either be a lender or shareholder

6 0
3 years ago
Ahngram Corp. has 1,000 defective units of a product that cost $3.30 per unit in direct costs and $6.80 per unit in indirect cos
OLga [1]

Answer:

If the units are reworked, income will increase by $5,800.

Explanation:

Giving the following information:

Number of units= 1,000

Sell as-is= $4.3

Rework cost= $2.8

Selling price= $12.9

<u>Because the original cost will remain constant in both options, we will not take them into account.</u>

Sell as-is:

Effect on income= 1,000*4.3= $4,300

Rework:

Effect on income= 1,000*(12.9 - 2.8)

Effect on income= $10,100

If the units are reworked, income will increase by $5,800.

4 0
3 years ago
Command-and-control (sometimes called direct control) is when the government passes legislation specifically regulating an activ
lys-0071 [83]

Answer:

1. Under command-and-control regulation, the government will sometimes specify the technology that firms must use in production. TRUE, e.g. currently the US government banned Huawei from providing 5G technology in the US due to security concerns even though that provides the best 5G technology in the world.

2. The government may decide on a specific amount of pollution that firms can legally emit. TRUE, the EPA sets the standards and companies must follow them, whether they are too high or too low maybe subject to an extensive debate.

3. A limitation of a command-and-control regulation is that firms have no incentive to remove pollution once they are within the legal pollution limits. TRUE, if the company is complying with current regulation, then that is all it needs to keep functioning without any problem.

4. Command and control situations are always the best option when it comes to reducing the amount of pollution. FALSE, when is the government or Congress the most efficient at doing something. Efficiency is not a characteristic of any government entity.

5. Command-and-control is more flexible than market-based regulation. FALSE,  the terms command and control should give you an idea that government intervention can be anything but flexible.

6. A command-and-control regulation is subject to political considerations. TRUE, command and control regulation is set up by government agencies or Congress and both are political entities by definition. E.g. some governments impose harder environmental controls through the EPA, others impose softer or no controls at all.  

4 0
3 years ago
Deontologist would agree that the increasing medical concern over obesity in the United States justified federal regulation of h
KonstantinChe [14]

Explanation:

Yes it is true that the advertisements during the children's program are responsible for increasing the craving of children for junk food which contains high calorie, high fat, high sugar and and low nutritional values.

These negative food habits are causing the obesity in the young children in the United States. The USDA has updated its "MyPlate" in 2011 to give information about the right food habits which are good for nutritional value  to the U.S citizens.

 

7 0
3 years ago
What research will help you prepare you before you apply for a job
nata0808 [166]

Answer:

What research will help prepare you before you apply for a job?

Explanation: A

3 0
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