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Airida [17]
3 years ago
6

Suppose an economy is producing real GDP of $300 billion. The potential output is equal to $400 billion, and the marginal propen

sity to consume is equal to 0.80. The government should ____ taxes by _____ to bring the economy to potential output.
Business
1 answer:
lukranit [14]3 years ago
7 0

Answer:

The government should <u>LOWER</u> taxes by <u>$25</u> to bring the economy to potential output.

Explanation:

the tax multiplier = -MPC / (1 - MPC) = -0.8 / (1 - 0.8) = -0.8 / 0.2 = -4

if you want to increase GDP by $100 billion, you must cut taxes by $25 billion.

total effect = -$25 billion x -4 = $100 billion increase

that would increase the GDP from its current $300 billion level to $400 billion

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A study of donor behavior for the International Red Cross seeks to identify participation from consumers through indirect gifts
yuradex [85]

Answer: C. sensitive information

Explanation: A. precision

B. time for though

C. sensitive information

D. recall and memory decay

E. presumed knowledge

The instrument designer should be aware of errors arising from the issue of sensitive information when writing the target questions for the study. The issue of sensitive information deals with information that must be protected against unwanted disclosure and thus must be safeguarded usually because of legal, security or ethical reasons. It borders issues concerning personal privacy such as individual donor records, or those pertaining to proprietary considerations.

5 0
3 years ago
Read 2 more answers
"One of the key factors a plaintiff (employee) must prove in a wrongful discharge lawsuit based on the public policy tort except
Cerrena [4.2K]

Answer:

Clarity

Explanation:

Employment-at-will is the situation whereby an organization enters into a contractual relationship with an employee stating that they can be dismissed by the organization for any reason even without warning on the condition that the dismissal is not Illegal. Thus, to prove a wrongful dismissal based on public tort exception to employment at will is clarity.

7 0
3 years ago
The annual report for Malibu Beachwear reported the following transactions affecting stockholders’ equity:a. Purchased $350,100
cestrela7 [59]

Answer:

Malibu Beachwear

Indication of the effect (+ for increase, − for decrease, +/− for increase/decrease) of each of these transactions on total assets, liabilities, and stockholders’ equity:

a. Purchased $350,100 of common stock now held in treasury.

Assets (-$350,100) = Liabilities + Shareholders' Equity (-$350,100)

b. Declared cash dividends in the amount of $260,050.

Assets = Liabilities (+$260,050) + Shareholders' Equity (-$260,050)

c. Paid the dividends in (b).

Assets (-$260,050) = Liabilities (-$260,050) + Shareholders' Equity

d. Issued 101,000 new shares of $0.10 par value common shares for $2 per share.

Assets (+$202,000) = Liabilities + Shareholders' Equity (+$202,000)

e. Closed the Dividends account.

Assets = Liabilities + Shareholders' Equity

Explanation:

a. The purchase of common stock held in treasury implies that Malibu Beachwear bought its own shares from investors and paid cash.  The recording of the transaction involves a reduction in Cash (Assets) and Shareholders' Equity with the creation of Treasury Stock Account.  The treasury stock account is a contra account to the Common Stock account and the balance is deducted from the Shareholders' Equity in the balance sheet.

b. By declaring cash dividends, Malibu Beachwear is returning to its stockholders part of the assets that belong to them.  This transaction reduces the Shareholders' Equity (Retained Earnings) and increases the liabilities with Dividends Payable in the sum of $260,050 respectively.

c.  The payment of the cash dividend by Malibu reduces the Assets (Cash) and the Liabilities (Dividends Payable) in the sum of $260,050.

d. The issue of 101,000 new shares of $0.10 par value for $2 per share by Malibu Beachwear increases its Assets (Cash) with the sum of $202,000 (101,000 x $2) and the Shareholders' Equity (Common Stock with $10,100 and Additional Paid-in Capital- Common Stock with $191,900).

e.  Closing the dividends account does not affect the accounting equation.  Instead, it affects the Income Summary (Statement of Retained Earnings) to which the account is closed.

f. The accounting equation of Assets = Liabilities + Equity is an important feature of the double-entry system of bookkeeping and financial accounting.  The equation implies that every transaction affects the two sides of the equation since two or more accounts are involved.  Where it does not affect the two sides, it implies that one side is affected twice or more.  This equation keeps the assets and liabilities + equity sides in balance at all times.  It also implies that Malibu Beachwear for every transaction, will have the assets equal the liabilities or equity.

4 0
3 years ago
A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is call
sertanlavr [38]
The answer would be : A. dollar cost averaging

Dollar-cost averaging technique is a long-term technique to buy a fixed dollar amount of a particular investment, regardless of it's market price fluctuation. Since we invest in a fixed amount investment, the investment will eventually lead to profit, ( though it may take a longer time than those who affected by market's fluctuation)
3 0
3 years ago
What dividend yield would be reported in the financial press for a stock that currently pays a $1 dividend per quarter and the m
Anna35 [415]

Answer:

Dividend yield = 8.88 %

Explanation:

Data provided in the problem:

Dividends per quarter = $ 1

thus,

dividend per year =  $ 1 × 4 = $ 4  ( because 1 year consists of 4 quarter)

stock price =  $ 45

therefore,

dividend yield = ( Dividend per year / stock price ) × 100 %

on substituting the values, we have

Dividend yield = ( $ 4 / $ 45) × 100 %

or

Dividend yield = 8.88 %

6 0
3 years ago
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