Effect 1: Your money will plummet down
Effect 2: you won't have much to invest to help you get back economically
Effect 3: Your business with foreclose
Effect 4: Your house bills won't be paid because your business was closed.
Answer:
- $1,099,890 billion.
Explanation:
Marginal propensity to consume (MPC) = 0.990
Tax multiplier = - MPC ÷ (1 - MPC)
= - 0.990 ÷ (1 - 0.990)
= - 9
9
change in GDP = Change in taxes × Tax multiplier
= $11110 × (-99)
= - $1,099,890
the minus sign shows a decrease
Hence, the change in equilibrium GDP is - $1,099,890 billion.
The incremental income to process further for Maxim company equals to $30,000.
<h3>What is an Incremental income?</h3>
This means the profit that a business gains from an increase in sales.
It is gotten when there is an additional revenue generated by a certain product.
The Net income to be generated from Green health equals:
= Revenue - Cost
= $90,000 - $28,000
= $62,000
The Net income to be generated from Premium Green equals:
= Revenue - Extra cost
= $98,000 - $6,000
=$92,000
<h3>What is Incremental income to Process further?</h3>
= $92,000 - $62,000
= $30,000
Read more about Incremental income
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