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lubasha [3.4K]
3 years ago
11

Suppose that real GDP is currently ​$13.22 trillion and potential real GDP is​ $14.0 trillion, or a gap of ​$800800 billion. The

government purchases multiplier LOADING... is 10.010.0​, and the tax multiplier is 9.09.0. Holding other factors​ constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential​ GDP
Business
1 answer:
lawyer [7]3 years ago
5 0

Answer:

Change in government purchase needed = $40

Explanation:

Multiplier denotes the extent to which, change in an autonomous variable leads to multiple change in economy income.

Multiplier 'k' = Change in Income 'ΔY'  / Change in autonomous variable 'ΔG', as autonomous variable = government purchase here.

ΔY needed = 200 billion , k = 5 , ΔG = ?

k = ΔY / ΔG

5 = 200 / ΔG  

ΔG = 200 / 5

ΔG = 40  

Change in government purchase needed = $40

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3 years ago
Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 865 2 1,040 3 1,290 4 1,385
andrezito [222]

Answer:

Total FV= $5,080.86

Explanation:

Giving the following information:

Cash Flow:

Cf1= $865

Cf2= $1,040

Cf3= $1,290

Cf4= $1,385

Discount rate (i)= 8%

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Cf3= 1,290*1.08= 1,393.2

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5 0
3 years ago
In which market does a company's initial public offering (IPO) occur?
kirza4 [7]

Answer:

A primary

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The operations of the capital markets are categorized into primary and secondary markets. The primary market is where enterprises sell new bonds and equity to the public for the first time.  A good example is the initial public offering (IPO). An IPO is a process of issuing out new shares of a corporation to the public for the first time.

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A set of beliefs about what is right and what is wrong
rewona [7]
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This means that everyone benefits from the remodel equally and people who do not pay for it will still enjoy their benefits.

$3,390

The benefit is found by multiplying the average benefit for each person surveyed by the number of people surveyed, which is $11.3 X 300 = $3,390.

The college should not complete the project because the marginal cost: $4,400 is more than the marginal benefit: $3,390.

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3 years ago
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