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Oliga [24]
3 years ago
15

The marginal propensity to expend is 0.5 and there is a recessionary gap of $200. What fiscal policy would you recommend? (Assum

e mpe mpc)
A. Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200.
B. Contractionary fiscal policy, decrease government expenditures by $200, or cut taxes by $100
C. Contractionary fiscal policy,decrease govenment expenditures by $100, or cut taxes by $200.
D. Expansionary fiscal policy, increase government expenditures by $200, or cut taxes by $100.
Business
1 answer:
nlexa [21]3 years ago
6 0

Answer: A. Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200.

Explanation:

Recessionary gap = $200

Marginal Prospensity to Consume = 0.5

Spending multiplier will them be calculated as:

= 1/(1-0.5)

= 2

Tax multiplier will be:

= -0.5/(1-.5)

= -1

Therefore, the answer is option A"Expansionary fiscal policy, increase government expenditures by $100, or cut taxes by $200"

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Blogs and blogging tools are critical methods in accomplishing which segment of the 4e framework of social media marketing?
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The answer to this question is: Educate
In social media framework, educate refers to the ability to give additional in-depth knowledge about your field of business.
For example, you could use social media to promote your vegetarian products and educate the users on the dietary benefit that they could get by consuming more fruits and vegetables in the process.
5 0
3 years ago
Investor perception on the risk of bonds will raise their desired return.
faust18 [17]

The statement, investor perception on the risk of bonds will raise their desired return is true.

The higher an investment's risk, the greater its potential returns should be. By contrast, a very safe and low-risk investment should generally offer low returns. So, this investor perception will raise the desired return of the risk of bonds.

Generally, the higher the potential return of an investment, the higher the risk. Thus, there is no guarantee that you will actually get a higher return by accepting more risk. In this matter diversification is useful.

Hence, you can minimize the risk by making sure the company's bond you own is not a high risk company with a high probability of paying back.

To learn more about risk of bonds here:

brainly.com/question/14850768

#SPJ4

3 0
2 years ago
With crews working shifts that span 24 hours a day, what is the most important thing for Satya to keep in mind as she prepares h
Ilia_Sergeevich [38]

Answer: d. Look into the camera more than the live audience

Explanation:

It is best that Satya looks into the camera as the speech is being given because it will be replayed to other shifts. When it is replayed to those shifts, they need to get the impression that she is looking at them as she gives the speech.

This is not a necessity with the live audience because she is already in front of them and looking at the camera does not mean that she would not be looking at them based on the location of the camera. It is however, more important that she looks in the camera for the benefit of the next shifts.

8 0
3 years ago
Which type of competitive strategy is characterized by convincing rivals not to enter a price war, protection from customer pres
oee [108]

Answer:

b) overall low-cost leadership

Explanation:

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3 0
4 years ago
Consider the following statements regarding Company A and Company B:The two companies have identical operating results but have
Natalija [7]

Answer:

A. A only

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Since under US GAAP, once PPE is written, it can not be reversed. as Company B is indicated to have reversed the write down while company A did not. It therefore means that Company A only is reporting under US GAAP.

7 0
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