Answer:
Y = 300
government multiplier 2
output demanded increase by 20
If income tax is applied:
Y = 272.72
multipliers: 2.253775
increase 22.53775 billons
As disclosure it has a larget effect when the income tax is levied based on income rather than a flat rate.
Explanation:
DI = Y - 100
C = 30 + 0.6(Y - 100)
C = 30 - 60 + 0.6Y
C = 0.6Y - 30
Y = C + G + I
Y = (0.6Y -30) + 120 + 30
Y = 120 / 0.4 = 300
C = (0.6)300 - 30 = 150
With C we solve for the multiplier:
150/300 = 0.5
1 / (1 - 0.5) = 2
10 x 2 = 20
If variable that:
C = 30 + 0.6 (0.75Y)
C = 30 + 0.45Y
Y = 0.45Y + 120 + 30
Y = 150/.55 = 272,72
C = 30 + 0.45Y = 152,72
Propensitivity to consume:
152.72/272.72 = 0,5563
multiplier:
1 (1 - PMC) = 2.253775073
10 nillon will icnrease x 2.25377 = 22.54 billons
Answer:
5.71%
Explanation:
The after tax cost of debt=pretax cost of debt*(1-t)
where t is the tax rate of 35% or 0.35
pretax cost of debt=yield to maturity
The yield to maturity can be determined using rate formula in excel as below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest payable by the bonds i.e 12 coupons in 12 years
pmt is the annual coupon=$1000*9.5%=$95
pv is the current market price-flotation cost=$1,100-$48=$1052
fv is the face value of $1000
=rate(12,95,-1052,1000)=8.78%
After tax cost of debt=8.78%
*(1-0.35)=5.71%
Answer:
A. National-security argument
Explanation:
The National-security argument is also known as the National-defense argument. The argument proposes the imposition of high tariffs on locally manufactured goods so that the country would not be dependent on other countries for those goods in the event of war. For example, if a country is dependent on other counties for the production of food, then it would be in great danger in the advent of war. Tires that are also used to prepare weapons should be sourced within a country so that in the advent of war, the country would not be dependent on others.
This is the argument employed by the congresswoman who sought the imposition of a tariff on tires so that the United States would not be dependent on other foreign countries during a war.
You notice that when a new yoga class is offered at the student recreation center at a highly desirable time, some students from the other yoga classes go to the new class instead. This statement best represents this economic concept people usually exploit opportunities to make themselves better off.
Recreation includes all of the pursuits people make for the purpose of renewing their bodies and brains and adding interest and enjoyment to their free time. Exercises like walking, swimming, meditating, reading, playing games, and dancing are examples of leisure activities.
At its most fundamental level, economics aims to explain how and why we choose the products we do. Scarcity, supply and demand, costs and benefits, and incentives are four fundamental economic ideas that can be used to explain a variety of human decisions.
Learn more about economic concepts here
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Answer: Memorandum Of Understanding (MOU)
Explanation: A memorandum of understanding may be explained as a binding document between two or more parties usually employed to showcase an agreement in action, decision or intent of the parties involved. The memorandum of Understanding may be adopted to serve as a commitment to partner between two or more parties where the parties prefer to adopt a gentle or leave out legal procedure in their agreement deal.
In the scenario above, Bob will have to create a Memorandum of Understanding which will be signed by Bob's company and the third party to signify a convergence of will between them.
