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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

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hoa [83]

Answer:

c

Explanation:

$12 + $15 = $27 (that's the answer with the given information)

5 0
2 years ago
When lofonift inc. introduced its flagship product, an mp3 player, it captured the market by offering its product at a very low
Luda [366]
PROFIT PERHAPS OR INCREASE IN SALES FOR THERE IS NO RIVALS ANYMORE AND HAVE TAKEN THEM OUT
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3 years ago
Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and re
UNO [17]

Answer:

the present value is $13,588.97

Explanation:

The computation of the present value of the retreading operation is shown below:

As we know that

Present value = Future value ÷  (1 + rate of interest)^time period

= $2,700 ÷ 1.09^1 + $2,700 ÷ 1.09^2 + $2,700 ÷ 1.09^3 + $2,700 ÷ 1.09^4 + $2,700 ÷ 1.09^5 + $2,700 ÷ 1.09^6 + $2,700 ÷ 1.09^7

= $13,588.97

Hence, the present value is $13,588.97

5 0
2 years ago
At December 31, 2021, Moonlight Bay Resorts had the following deferred income tax items: Deferred tax asset of $102 million rela
masha68 [24]

Answer:

Moonligh Bay Resorts will report a Non-current liability of $126 million

Explanation:

The question is to determine whether Moonlight Bay Resorts is to report an asset (current or non-current) or a liability (current or non-current) in its December 31st 2021 Balance Sheet

The step is to determine the classification of the items in the balance sheet

This is done as follows

Description                                                                           Amount ($)

Total Deferred Tax liability (168 million + 120 million)        288 million

(Deferred tax liabilities related to

both current and non-current assets)

Total Deferred tax asset (102 million + 60 million)              (162 million)

The net deferred tax liability                                               126 million

Since, under the International Financial Reporting Standards Deferred Tax Liability is a Non-current liability, it means <u>Moonligh Bay Resorts will report a Non-current liability of $126 million</u>

7 0
3 years ago
A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of i
Pavlova-9 [17]

Answer:

true

Explanation:

The exchange rate is the rate at which one currency is exchanged for another currency

If interest rate is higher in a country compared to other countries, investors would be interested in investing in that country because they would earn a higher return for their investment.

As a result of the higher flow of funds into the economy with the higher interest rate, the demand for the country's currency increases. If the demand increases relative to supply, the value of that currency relative to other currencies increases and its exchange rate increases. this is what is referred to as currency appreciation

6 0
3 years ago
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