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attashe74 [19]
3 years ago
8

Suppose that the economy is experiencing a recession with an estimated recessionary gap of $10 billion. Congress is considering

the use of fiscal policy to ease the recession, but due to current political sentiments, it has determined that the maximum spending increase the government is willing to support is $3 billion. It wants to make up the remainder of the recessionary gap using tax cuts.
If a spending increase of $3 billion is approved and the MPC is 0.6, by how much will taxes need to be reduced to close the remainder of the recessionary gap?
Mathematics
1 answer:
Tju [1.3M]3 years ago
6 0

Answer:

4.66 billion

Step-by-step explanation:

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The population of a small industrial town was 12 910 in 2000. Each year, the population
balandron [24]

The population in the year 2020 is 4628

<h3>How to determine the population?</h3>

The given parameters are:

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Rate, r = 5%

Since the population decreases, then we make use of an exponential decay function.

This is represented as:

f(n) = a * (1 - r)^n

So, we have:

f(n) = 12910 * (1 - 5%)^n

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2020 is 20 years from 2000.

So, we have:

f(20) = 12910 * 0.95^20

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Hence, the population in the year 2020 is 4628

Read more about exponential functions at:

brainly.com/question/14355665

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6 0
1 year ago
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