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
NeX [460]
3 years ago
12

A personal tax cut of $50 billion will affect income differently than an increase in government spending by $50 billion because:

Business
1 answer:
Bess [88]3 years ago
8 0

Answer:

C) Households may save part of the additional income from the tax cut

Explanation:

When we consider the total household income there is always a major part that is spent, this is called propensity to consume. It is defined as the proportion of total income that consumers are willing to spend.

But propensity to consume doesn't include 100% of household income, there also exists the propensity to save. That is the exact opposite, is the proportion of our income that we will save for future use.

Luckily for us all, the propensity to spend is usually much higher than the propensity to save. We have to remember that private consumption represents nearly 70% of the nation's GDP.

What households save goes to investment in GDP. Investment is always needed but it represents future growth of the GDP while consumption represents current growth of the GDP.

You might be interested in
Total assets of Charter Company equal $700,000 and its equity is $420,000. What is the amount of its liabilities? b. Total asset
guajiro [1.7K]

Answer:

a. Total liabilities = $280,000

b. Total liabilities = $250,000

Total equity -= $250,000

Explanation:

As we know that

Total assets = Total liabilities + shareholder equity

So in the first case

The amount of the liabilities is

Total liabilities = Total assets - Total equity

                        = $700,000 - $420,000

                        = $280,000

And, in the second case, the total assets is $500,000

And, the liabilities and equity amounts are equal to each other

So in this case, the liabilities is $250,000 and the equity is $250,000

3 0
3 years ago
( Help please suck on this question !! )
nalin [4]

Answer:A

Explanation:

Because as long as a bank does have customers over the next few years then they have to tackle customers engagement.

4 0
3 years ago
What are two features of a bond?
Rus_ich [418]

Bonds have a maturity date, are perpetual, and pay a coupon rate.

3 0
3 years ago
Read 2 more answers
Condensed financial data are presented below for the Phoenix Corporation:
dybincka [34]

Answer:

profit margin 7.77%

<em><u>Interpretation: </u></em> from evey dollar of sales the firm achieves almost 8 cent of net income

inventory turnover ratio 3.45

<em><u>Interpretation: </u></em>the inventory is sold 3 and a half times during the year

Explanation:

the profit margin is the quotient between net income and sales.

\frac{net \: income}{sales} = $profit margin

127,500 / 1,640,000 = 7.77%

the inventory turnover wil be the cost of good sold over the average inventory during the year

(312,500 + 257,500)/ 2  = 285,000

982,500 / 285,000 = 3,447368421

6 0
3 years ago
A firm has three different production facilities, all of which produce the same product.. While reviewing the firm's cost data,
Valentin [98]

<u>Joshua is right because fixed costs are unavoidable but marginal costs are not.</u>

<u>Explanation</u>:

Decision making plays an important role while considering the development of the organization. The officials in the company should act smartly in making decisions during crucial situation.

<u>Marginal cost </u>is the cost added to the total cost while producing additional units. <u>Fixed cost </u>is the cost of the product that does not change with the increase or decrease in the quantity of the products.

In the above scenario, Jasmine and Joshua were discussing about the cost of the products that are produced in their manufacturing plants. They were discussing about the marginal cost and fixed cost.

6 0
3 years ago
Other questions:
  • Han Products manufactures 32,000 units of part S-6 each year for use on its production line. At this level of activity, the cost
    7·1 answer
  • City mission is a not-for-profit organization that provides hot meals, living quarters, and showers for homeless people. based o
    10·1 answer
  • "Division A, which is operating at capacity, produces a component that currently sells in a competitive market for $25 per unit.
    6·1 answer
  • How might an economist gather empirical data to test the proposed relationship between money and the price level?
    7·2 answers
  • (TCO IF) You have agreed to deliver the underlying commodity on a futures contract in 90 days. Today, the underlying commodity p
    9·1 answer
  • In what federal body do all bills concerning taxes/revenue originate?
    8·1 answer
  • A residential property is greatly diminished in value because of the constant noise of jets taking off from a recently expanded
    6·1 answer
  • Sasha is an agent for ABC Insurance Company. Under her agent contract, she is allowed to use the company's logo on her office do
    5·1 answer
  • A household appliances manufacturer has hired you to help analyze their social media datasets to determine which of their refrig
    8·1 answer
  • Jetson Spacecraft Corp. shows the following information on its 2015 income statement: sales = $316,547; costs = $219,406; other
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!