Answer:
$100; $75
Explanation:
Given that:
- Tax revenue falls by 100 million dollars
- marginal propensity to consume (MPC) is 0.75.
Due to the fall in tax revenue, disposable income will increase by the same amount, that is, $100 million.
Consuption spending will initially increase by $75 million, as shown below:
= MPC × tax revenue fall
= 0.75 × $100,000,000 = $75,000,000
Answer:
Compilations.
Explanation:
A compilation is part of the write-up service of accounting firms that involves conversion of data into financial statements without providing assurances or auditing services.
A compilation report usually accompanied the financial statements to show that data is well represented, and also to show that there has been no audit so the accountant is not giving an opinion.
So the CPA will not be violating independent rules by working on compilations.
Answer:
a) attached below
b) stable equilibria = x = 0.1 , x = 0.8
unstable equilibria = other value except 0.1 , 0.8
c) 0.5 , 0.6
Explanation:
Benefit of using the local roads = 1 + 8x - 9x^2
Benefit of using the free way = 3.6
a) Attached below is the required graph
<u>b) Determine The possible equilibrium traffic patterns from the graph </u>
stable equilibria : x = 0.1 , x = 0.8 ( this id because at these given value the benefits of using either routes is equal )
unstable equilibria : every other value of X except 0.1 and 0.8
<u>c) Determine the value of x that maximizes the total benefit to the population</u>
The value of X that maximizes the total benefit to the population = 0.5 and 0.6
attached below is the detailed solution
Answer:
Hold harmless.
Explanation:
It defines hold harmless as follows: To absolve (another party) from any responsibility for damage or other liability arising from the transaction.
Answer:
MPC = 0.4
Explanation:
Multiplier shows change in income due to change (increase) in investment, or change (decrease) in tax. It is calculated by Marginal Propensity to Consume, as follows -
Multiplier ie k = Δ Income / Δ (govt investment or tax) = 1 / (1 - MPC)
Given : ΔG ie tax fall = 60 ; Targeted income rise = Full employment - actual output = 2000 - 1900 = 100
k = ΔY / ΔG = 100 / 60 = 1.67
k = 1 / (1 - MPC) → 1 - MPC = 1 / k → 1 - MPC = 1 / 1.67 → 1 - MPC = 0.6
MPC = 1 - 0.6 → MPC = 0.4
