If the government cuts taxes by $40 billion, this puts more money in consumers' pockets. Given an MPC of 0.8, this means they will spend $32 billion
Evaluating :
(0.8 × $40 = $32).
The correct answer is an increase of $32 billion.
GDP:
Gross domestic product (GDP) is a measure of the final goods and services produced with a specific region over a specified period of time. It is computed as follows:
GDP = Consumption + Government Spend + Investment + Net Exports
What is Marginal Propensity to Consume (MPC)?
Marginal propensity to consume (MPC) is measured as the portion of an increase in pay that a consumer would spend on goods and services as opposed to saving. Essentially, it is measuring how sensitive consumption in an economy is to increases in income. MPC is important in economics because it illustrates the effect that increased government spending has on the economy.
Learn more about Marginal propensity :
brainly.com/question/25821146
#SPJ4
<span> Reduce the client's base of support.</span>
A specific group of related businesses is known as a *chain.
Answer:
5 Qualities of a Phlebotomist
Compassion. A Phlebotomist's primary duty is drawing blood. ...
Detail-oriented. Phlebotomists must draw the correct vials of blood for the tests ordered, track vials of blood, and enter data into a database. ...
Hand–eye coordination. ...
Ability to Multitask. ...
Team Player.
Explanation:
etc
Answer:
E. $560,000
Explanation:
Balance of Long term Investment
= Value of Investment - Pre Acquisition Dividend ($100,000*40%) + Share of Net Income ($500,000*40%)
= $400,000 - $40,000 + $200,000
= $560,000
Therefore, The balance in Madison Corporation's Long-Term Investment-Jay Corporation account as of December 31 should be $560,000.