1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nookie1986 [14]
3 years ago
14

g Consider the income-expenditure model. Suppose that the marginal propensity to consume is equal to 0.8. A reduction in taxes o

f $100 billion will cause output to:
Business
1 answer:
RideAnS [48]3 years ago
3 0

Answer:

increase by 400 billion dollars

Explanation:

marginal propensity to consume = mpc

tax multiplier = -mpc/1-mpc

from our question we were given mpc to be 0.8

-0.8/1-0.8

= -0.8/0.2

= -4

change in output = -4(-100)

= 400 billion dollars

for a $100 tax decrease, output will increase by $100 billion x 4

= $400 billion

You might be interested in
. Costs that the manager has the power to determine or at least strongly influence are called: Question 5 options: A. Uncontroll
GalinKa [24]

Answer:

B. Controllable costs

Explanation:

There are some costs that are expended by a company during the cost of carrying out their business operations. These costs such as labor costs and marketing budgets are incurred because the company has full authority over them. They are costs that can be altered in short term based on a business decision.

In other words, controllable costs are those costs or expenses that can be influenced by those who are saddled with the responsibilities of incurring them.

5 0
3 years ago
To realize his passion,Alex recently opened Original Tunes,Inc. ,a small state of the art recording studio in Nashville,TN.He pr
melamori03 [73]

Answer:

<u>a. True</u>

Explanation:

Indeed, we could rightly say the statement is true by remembering the four key factors of production (business):

  • capital (wealth)
  • labor
  • resources
  • entrepreneur.

Labor is part of the list of important factors and political freedom allows the entrepreneur to sucessfully manage business activities.

7 0
3 years ago
A consumer products company wants more creativity in its research and development operations. The company has spent large amount
Ugo [173]

Answer:

• Diversify the workplace

• Use creativity- and mind-stimulating games

• Use (a) flexible workplace(s)

Explanation:

1. Diversify the workplace

Employees consisting of different types of people, in terms of age, social status, race, gender and ethnicity, can help boost creativity in the workplace. Different backgrounds and experiences from the members will allow for different ideas to flow among the team.  Differences will also make the team appreciate each other and make the entire team versatile.

2. Use creativity- and mind-stimulating games

Games that are open ended and not structured can help boost creativity. Each participant will have a different response which will allow more development and inventive ideas. Research can be done through guessing games that stimulate the mind or  artistic games such as acting scenes, etc.  

3. Use (a) flexible workplace(s)

Office space with air-conditioners and four walls may restrict the amount of creativity and result in the same, dull, exhausted ideas over time. To increase the level of creativity, the team should use different workplaces randomly for a change of scenery. One day spent at a park, the next day could be spent in a laboratory and the next could be spent in a library. Different environments can spark new, fresh ideas that can assist with research and development.  

7 0
4 years ago
Read 2 more answers
A cash register tape reflected total sales equaling $100, but the cash in the cash register drawer equaled $105. Review the stat
Zolol [24]

Answer:

The answer is given below;

Explanation:

The $ 5 collected will be treated as miscellaneous revenue.The cash over and short account will be credited for $5.

As the cash receipts are $ 105 and sales revenue is $100.The difference amount will be treated as miscellaneous revenue.

The journal entry will be;

Cash   Dr.$105

Sales Revenue    Cr.$100

Miscellaneous revenue Cr.$5

7 0
4 years ago
Read 2 more answers
The economic term that describes the satisfaction that consumers gain from consuming goods and services is
joja [24]

Answer:

utility

Explanation:

5 0
3 years ago
Other questions:
  • Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4
    8·1 answer
  • Which of the following statements about credit scores is TRUE
    11·1 answer
  • An increase in the money supply will have the greatest effect on real gross domestic product if
    14·1 answer
  • You found your dream vacation cottage in the mountains and your offer of $78,000 was accepted. You plan to put 20% down and will
    9·1 answer
  • Assume the U.S. interest rate is 7.5 percent, the New Zealand interest rate is 6.5 percent, the spot rate of the NZ$ is $.52, an
    5·1 answer
  • Sadik Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year ma
    11·1 answer
  • How will modifying the priority value help to achieve your goals?
    12·1 answer
  • Tri Fecta, a partnership, had revenues of $364,000 in its first year of operations. The partnership has not collected on $46,700
    8·1 answer
  • What is a DBA name, and when does a company need one?
    15·1 answer
  • What are the five forms of Utility?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!