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lesya [120]
3 years ago
13

. Initially, the economy is in long-run equilibrium. The aggregate demand curve then shifts $50 billion to the left. The governm

ent wants to change its spending to offset this decrease in demand. The MPC is 0.80. Suppose the effect on aggregate demand from a change in taxes is 4/5 the size of the change from government expenditures. There is no crowding out. What should the government do if it wants to offset the decrease in aggregate demand?
Business
1 answer:
Romashka [77]3 years ago
3 0

Answer

the correct answer is

Reduce taxes by $5.56 billion dollars. Increase expenditures by $5.56 billion dollars.

good luck ❤

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Panjim's 2005 cash flow from operations is:________.
nignag [31]

Answer:

I think it is D I hope this helps if it didn't tell me

8 0
3 years ago
In one to three sentences, describe reliable financial information.
Karolina [17]

Reliability requires that the information should be accurate and true and fair, neutral and unbiased, verifiable and using the same method would come up with similar results or numbers. Reliable information includes information from experts in the field , information from recognized and reputable organizations and information that can be verified by other sources.It's important to use information that is both reliable and relevant when making financial decisions.

5 0
3 years ago
Read 2 more answers
Consider a firm with a contract to sell an asset for $154,000 five years from now. The asset costs $90,000 to produce today. Giv
horsena [70]

Answer:

the firm will have a loss of 6.414,97‬

Break-even rate = 11.34%

Explanation:

We calcualte the present value of a lump sum to know the present sale value:

\frac{Nominal}{(1 + rate)^{time} } = PV  

Nominal:  154,000

time               5 years

rate               0.13

\frac{154000}{(1 + 0.13)^{5} } = PV  

PV   83,585.03

the current sale price        83,585.03

given a cost of               <u>   (90,000)      </u>

the firm will have a loss of 6.414,97‬

To break event the present value should be 90,000:

\frac{154000}{(1 + r)^{5} } = 90,000

\sqrt{5}{\frac{154000}{90,000}} -= (1 + r)  

rate = 0.113411345 = 11.34%

6 0
4 years ago
The following is an estimated demand function:
Tanzania [10]

Answer:

The predicted value of sales is $75,037,500.

Explanation:

Given:

Q = 875 + 6XA + 15Y - 5P ……………………..(1)

Where:

Q = quantity sold = ?

XA = Advertising = $100,000

Y = Income = $10,000

P = Price = $100

Substituting the values into equation (1), we have:

Q = 875 + (6 * 100,000) + (15 * 10,000) - (5 * 100)

Q = 750,375

Therefore, we have:

Predicted value of sales = Q * P = 750,375 * $100 = $75,037,500

Therefore, the predicted value of sales is $75,037,500.

3 0
3 years ago
Carmex's first efforts in marketing research had the research objective of figuring out who it was as a company and what the Car
Mila [183]

Answer:

The correct answer is 1. defining the problem .

Explanation:

Although every step in a market research project is important, defining the problem is the most important of all. For market research purposes, the terms problems and opportunities are handled interchangeably. The definition of the problem implies starting with the general terms of the problem, to then identify its specific components. Only when the market research problem was clearly defined, could the research be designed and carried out. Of all the tasks in a market research project, none is more vital than the detailed definition of the research problem, as this will allow us to fully meet the needs of the client.

7 0
3 years ago
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