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Anestetic [448]
3 years ago
12

If the marginal propensity to consume (mpc) is 0.9, the spending multiplier is _____, the tax multiplier is ______, and the bala

nced budget multiplier is _______, respectively.
Business
1 answer:
Margarita [4]3 years ago
8 0

Answer:

If the marginal propensity to consume (mpc) is 0.9, the spending multiplier is <u>10</u>, the tax multiplier is -9, and the balanced budget multiplier is <u>1</u>, respectively.

Explanation:

These can be calculated as follows:

a) Calculation of spending multiplier

To calculate this, we use the formula for calculating the spending multiplier as follows:

Spending multiplier = 1 / (1 - mpc)

Since mpc = 0.9, we have:

Spending multiplier = 1 / (1 - mpc) = 1 / (1 - 0.9) = 1 / 0.1 = 10

b) Calculation of tax multiplier

To calculate this, we use the formula for calculating the tax multiplier as follows:

Tax multiplier = -mpc / mps

Note that the tax multiplier as given above is negative because increase in tax by the government makes the multiplier to work in reverse since the money is leaving the circular flow.

Since what is not consumed is saved, we have:

mps = 1 - mpc = 1 - 0.9 = 0.1

Therefore,

Tax multiplier = -0.9 / 0.1 = -9

c) Calculation of balanced budget multiplier

To calculate this, we use the formula for calculating the balanced budget multiplier as follows:

Balanced budget multiplier = Spending multiplier + Tax multiplier = 10 + (-9) = 10 - 9 = 1

Note that balanced budget multiplier is always equal to 1 as obtained above.

Conclusion

Therefore, if the marginal propensity to consume (mpc) is 0.9, the spending multiplier is <u>10</u>, the tax multiplier is -9, and the balanced budget multiplier is <u>1</u>, respectively.

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Film and theater productions that meet certain criteria may qualify for ____, given by individuals or organizations that set for
kenny6666 [7]

Answer:

Grant.

Explanation:

According to my research on different financial aid's, I can say that based on the information provided within the question the term being mentioned in the question is called a Grant. Like defined in the question, this is a financial aid that is given to people or groups that meet certain requirements in order to help them continue and further expand on their work. These Grant's are given as a form of donation by individuals or organizations that appreciate the work being done.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
A company's fixed interest expense is $26,000, its income before interest expense and income taxes is $221,000. Its net income i
tatyana61 [14]

Answer:

8.5

Explanation:

The company interest expense is $26,000

The income tax is $221,000

The net income is $106,100

Therefore the company times interest earned ratio can be calculated as follows

= Income tax/interest expense

= 221,000/ 26,000

= 8.5

Hence the company times interest earned ratio is 8.5

7 0
2 years ago
_________is the chance that political forces may change a country's business environment in ways that lead investors to lose som
Zarrin [17]

Answer:

political risk

Explanation:

The government, specially when presidential election are in their way may generate political risk if there are some parties which aren¡t friendly-market. If the invesotr notice the possible new government will not pay their bonds debt or will do confiscation against foreing company's there will be a highly change that investor leave the country.

3 0
2 years ago
RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells
kvasek [131]

Answer:

$4

Explanation:

Contribution margin is the difference between sales and variable cost. As such, the contribution margin per unit is the difference between the sales per unit and the variable cost per unit.

Given that

variable cost per unit = $6

Selling price per unit = $10

The contribution margin per unit is

= $10 - $67

= $4

6 0
2 years ago
JFK Corp. factors $300,000 of accounts receivable with LBJ Finance Corporation on a without recourse basis on July 1, 2020. The
Marianna [84]

Answer:

Please see below

Explanation:

A. Journal entry for JFK Corp, July 1, 2020 to record the sale of receivable without recourse.

Cash. Dr.

[(100 - 4 - 1.5) × 300,000]. $283,500

Due from factor Dr

(0.4 × 300,000) $12,000

Loss on sale of receivable. Dr

(0.015 × 300,000) $4,500

To Accounts receivable Cr $300,000

B. Journal entry for LBJ finance Corporation on July 1, 2020 to record the purchase of receivables without recourse.

Accounts receivable Dr $300,000

To due from factor Cr $12,000

To Financing revenue Cr $4,500

To cash account Cr $283,500

7 0
3 years ago
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