Answer:
increase by 400 billion dollars
Explanation:
marginal propensity to consume = mpc
tax multiplier = -mpc/1-mpc
from our question we were given mpc to be 0.8
-0.8/1-0.8
= -0.8/0.2
= -4
change in output = -4(-100)
= 400 billion dollars
for a $100 tax decrease, output will increase by $100 billion x 4
= $400 billion
Answer:
B. Liquidation.
Explanation:
Liquidation is and aftermath of the inability of a company or establishment to meet up with her obligations at the required moment. Thus, the company folds-up, lay off her staff and stop operating. While reorganization is a form of restructuring in a company or establishment. It may involve change of positions and duties among capable staff.
The example in the given scenario is that of liquidation because it ceased from operation.
Answer:
The correct answer is: oligopoly.
Explanation:
A market structure where there are only a few firms is called an oligopoly market. These firms can be producing either identical products or differentiated products.
Because of few firms, there is a high degree of competition in the market. The firms are price makers and face a downward sloping curve.
There is interdependence in the market such that the economic decisions of a firm affects the price, profits and output level of its rivals. So the firms have to consider the reaction of its rivals before making an economic decision.
Answer:
a.higher than the market rate of interest
Explanation:
If bonds are issued at a premium, the stated interest rate is <u>higher than the market rate of interest.</u>
- If the company issues the binds at a premium, it means that the company is getting more money than the face value of the bond.
- This happens because the demand for the bind is high in the market.
- The demand is high because the company offers higher interest rate as compared to market interest rate.
- If the bonds are issued at a discount, then the stated interest rate is lower than the market interest rate.
What are choices for this question
