Answer:
Therefore, Increases in the tax rate decrease the government purchases multiplier
Explanation:
Given that
MPC = 0.8
Tax rate t = 0.25
tax rate is increases by 35%
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t). Here
So, GPM = 1 ÷ 1 - 0.8 × (1 - 0.25) = 2.5
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t)
MPC = 0.8
tax rate t = 0.35
GPM = 1 ÷ 1 - 0.8 × (1 - 0.35)
= 2.08333
= 2.083
Therefore, Increases in the tax rate decrease the government purchases multiplier.
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Answer:
Specialization can lead to an increase in overall production
Explanation:
We specializes in something we are skilled at and will become better at and so we will be able to produce more of that goods and services
Nowzer, a sales distributor for Eureka Computer Solutions is an internal customer of Eureka Computer Solutions.
<h3>Who is an internal customer?</h3>
For a company, an internal customer is the one who has direct relationship with the company hence dependent on them.
Hence, Nowzer, a sales distributor for Eureka Computer Solutions is an internal customer of Eureka Computer Solutions.
Learn more about internal customers here : brainly.com/question/2040044
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Answer:
Finance Learning Corporation
Explanation: