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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.

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Narrow, specifically designated expenditures that are included in more comprehensive legislation are known as: A.earmarks.B. log
Dmitry [639]

Narrow, specifically designated expenditures that are included in more comprehensive legislation are known as earmarks

Explanation:

A reserve is an arrangement in a discretionary spending bill which directs funds to a particular beneficiary while bypassing the distribution process of merit-based or competitive funds. American and South African public finances feature Earmarks.

The allocation process gave Congress the power to allocate discretionary funds for specific programs. The allocation process was a routine part of the federal government allocation process.

For several years, they have been a central aspect of regulatory and distributive reform, an important political mechanism by which national coalitions have been built up by consensus with the intention of implementing or opposing crucial legislation. The ban' contributes to the legislative gridlock and increases the difficulty of achieving tax and immigration reforms,' as congressional appropriations disadvantaged and were ultimately prohibited.

3 0
3 years ago
Which of the following best describes a Nash equilibrium? An outcome from which one or both competitors can improve their positi
amid [387]

The question is reconstructed below:

Which of the following best describes a Nash equilibrium?

A. An outcome from which one or both competitors can improve their position by adopting an alternative strategy.

B. The unstable outcome of a repeated game.

C. An outcome that is stable only because of credible threats.

D. An outcome which both competitors see as optimal, given the strategy of their rival.

Answer:

D. An outcome which both competitors see as optimal, given the strategy of their rival.

Explanation:

Although Nash equilibrium is a game theory, it has been widely applied in economics. It states that a competitor can achieve his desired outcome by sticking to his original strategy. Both competitors' strategies are optimal when considering the decisions of each other.

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3 years ago
Ivanhoe Company issued $492,000 of 10%, 20-year bonds on January 1, 2017, at 104. Interest is payable semiannually on July 1 and
mamaluj [8]

Answer:

Explanation:

For  answer , see the attached file.

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3 years ago
Why do you think banks and companies want to know if you have opened up any new credit accounts recently?
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Idk lol, look on quizlet
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Masteriza [31]

Answer:

trying to evaluate the situation from all diff perspectives

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