Tax multiplier amount = -9.00.Real GDP changed or increased by $9 billion. Less than $1 billion in spending would be required by the government. The explanation is that the tax multiplier's absolute value is bigger than the expenditure multiplier's absolute value, which is 10.
MPC = 1 - 0.90 = 0.10 MPS = Marginal Propensity to Save = 1 MPC = 1 - 0.90 = 0.10
As a result, we have:
The tax multiplier is equal to MPC / MPS, which is 0.90 / 0.10, or -9.00.Reduced tax X=-$1 billion
Tax multiplier equals -9.00.
Amount of change or growth in real GDP equals a decrease in taxes, multiplied by a -$1 tax multiplier.Multiplier for expenses = 1/ MPS = 1/ 0.10 = 10Real GDP growth is equal to the change in government spending multiplied by the expenditure multiplier (1). Solve for by substituting the appropriate values into equation (1). Government spending has changed.We possess.Change in government spending of $9 billion $9 billion / 10 = $0.90 billion in changes to government spending in one year.Given that the expenditure multiplier produced a change in government spending of $0.90 billion, this suggests that less than $1 billion in expenditures would be required.
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Answer: Strategic plan, tactical plan, operational plan
Explanation:
The names that he should use to refer to the guide is the strategic plan. The strategic plan is used to know the goals of an organization and the.needed strategies that'll enable the achievement of the goals.
The individual plans, refer to the tactical plans and it occurs after the strategic plan has been created. The tactical plan simply shows the steps that will be taken for the goals to be accomplished.
The plan to oversee other plans is the operational plan. The operational plan is drawn by the company in order to propel the company to be successful and achieve its goals.
Answer: The term structure of interest rates and the time to maturity are always directly related.
Explanation:
The term structure of interest rates shows the relationship between interest rates and the different maturity periods of bonds. Normally, these move in the same direction i.e., the higher the maturity period, the higher the interest rate.
This however is not a given. It might be expected for instance that interest rates might drop in future. In such a situation, the interest might reduce with a longer maturity period which would depict an inverse relationship instead of a direct one.
Prior sales and communication activities
To determine the current communication budget, rule-of-thumb methods use prior sales and communication activities. These methods are simple to implement, but they do have some limitations.
<h3>What is rule-of-thumb?</h3>
A rule-of-thumb is a heuristic guideline that gives simplified counsel or a fundamental rule-set for a certain subject or course of action. It is a broad principle that provides specific directions for completing or performing a task. Generally, rules of thumb emerge from practice and experience rather than scientific study or a theoretical underpinning.
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Answer:
1) Outside Location
2) Central Location
The profit will be the same when monthly demand is 230 cars
Explanation:
Let central location be termed as location A
Let outside location be termed as location B
<u>1. Demand 200 cars</u>
Profit- Location A = (90-30) * 200 - 7000 = $5000
Profit- Location B = (90-40) * 200 - 4700 =$5300
<u>2. Demand 300 cars</u>
Profit- Location A = (90-30) * 300 - 7000 = $11000
Let x be the number of cars where profit is same,
we will equate both the profit equations
(90-30)*x - 7000 = (90-40)*x - 4700
60x - 7000 = 50x - 4700
60x - 50x = 7000 -4700
10x = 2300
x = 2300/10
x = 230 cars
Profit- Location B = (90-40) * 300 - 4700 =$10300
