Answer:
A. increase equilibrium income by $300 and cause the budget deficit to decrease by $90.
Explanation:
Change in income = Multiplier * Change in investment
Change in income = $3 * 100
Change in income = $300
So, Income tax increase by = $300 * 0.3
= $90. Government expenditure is unchanged. So, Budget deficit (G-T) decreases by $90.
This type of capitalization method is called the Gross Rent Multiplier (GRM). This is used in calculating the approximate net <span>income excluding the vacancies, bed debt, and expenses. In order to estimate the value of an apartment or building, for instance, GRM is used as the quickest tool.
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Answer:
the principal amount at a rate of 4% is 2000
principal amount at a rate of 3.5% is 4000-2000 =2000
Explanation:
We have given total amount borrowed = $4000
Let x amount is borrowed at a rate of 4%
So $4000-x is borrowed at rate of 3.5%
Total interest = $150
We know that simple interest
So
0.5 x=1000
x = 2000
So the principal amount at a rate of 4% is 2000
And principal amount at a rate of 3.5% is 4000-2000 =2000
Answer:
6%
Explanation:
Based on the equation of exchange, the inflation rate can be determined by taking the difference between the rate of wage growth and the rate of labor productivity. Therefore, in the question above, the inflation rate is 9% - 3% = 6%. This shows that a fast increase in the wage growth rate with a slow increase in the productivity rate will lead to inflation.