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iogann1982 [59]
2 years ago
11

If the tax multiplier is 1. 5 and a $200 billion tax increase is implemented, what is the change in gdp, holding all else consta

nt? (assume the price level stays constant. ).
Business
1 answer:
larisa86 [58]2 years ago
5 0

Based on the information given  the change in GDP, holding all else constant is a $300 billion increase in GDP.

Using this formula

Change in GDP=Tax increase× Tax multiplier

Where:

Tax increase=$200 billion

Tax multiplier=1.5

Let plug in the formula

Change in GDP=$200 billion×1.5

Change in GDP=$300 billion increase

Inconclusion the change in GDP, holding all else constant is a $300 billion increase in GDP.

Learn more here:brainly.com/question/9991208

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chubhunter [2.5K]

Answer:

The incorrect statement is letter "D": Saving can only be done in person. Investing can be done both in person and online.

Explanation:

There are several differences between saving and investing. Both of them have the potential to grow capital over a specific period. While saving is beneficial in the short run, investment is in the long run.  

Though, saving money implies depositing it in an account to make a profit out of the annual interest rate offered by banks. <em>The money can be deposited in person, through wire transfers or online transfers between accounts</em>. Investing is characterized by risking money through acquiring assets such as stocks, bonds, or mutual funds. That money can be provided by the investor in a meeting with the people in charge of managing the money or through online brokers.

6 0
3 years ago
During its inception, Devon Company purchased land for $100,000 and a building for $180,000. After exactly 3 years, it transferr
Margaret [11]

Answer:

1. (4) Building at $180,000 and accumulated depreciation of $18,000.

2. (1) $312,000

3. (3) additional paid-in capital of $162,000.

Explanation:

1. The purchase price of building is $180,000

And the depreciation based on straight line method with a life of 30 years for each year = $180,000/30 = $6,000

Therefore, accumulated depreciation for 3 years = $6,000 \times 3 = $18,000

2. Total amount of assets given to subsidiary shall be the cost, and value of investment in books = $100,000 of land + ($180,000 - $18,000) of building after depreciation + $50,000 cash given

Therefore total value of investment shall be $312,000

3. Additional paid in capital = Total value of investment - Cost of shares (par value of shares)

= $312,000 - ($10 \times 15,000 shares) = $312,000 - $150,000

= $162,000

5 0
3 years ago
You have $1200 to invest in a bank account with an interest rate of 5.5%, compounded monthly. After how many years will your acc
nekit [7.7K]
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8 0
2 years ago
A company pays its employees $3,850 each Friday, which amounts to $770 per day for the five-day workweek that begins on Monday.
liq [111]

Answer:

$3080

Explanation:

Calculation to determine what the amount of salaries earned but unpaid at the end of the accounting period is:

Salaries earned but unpaid at the end of the accounting period =3850-$770

Salaries earned but unpaid at the end of the accounting period =$3080

3 0
2 years ago
1. _______ Allen was driving home when a deer jumped out. The deer damaged his truck.
kow [346]

Answer:

Matching Situation with appropriate term:

1. _c. Collision __ Allen was driving home when a deer jumped out. The deer damaged his truck.

2. _n. Property Damage Liability _ A lightning strike at Troy’s home damages his TV and DVD player.

3. _h. Insurance Company/Insurer _ ABC Insurance Inc. advises Katie that she cannot take out a policy on Brad Pitt.

4. _p. Risk management _ Adam’s job is deciding if the insurer will accept a risk and what the cost will be.

5. __o. Renter’s __ Amy decides not to purchase a new car because insurance is so expensive.

6. __m. Premium _ Bill is paid for a collision claim based on the book value of his vehicle.

7. __i. Insurance fraud _ Cheetum’s Body Shop padded the repair bill for Chris’s pick up.

8. _b. Bodily Injury Liability _ Janet hit a car and someone was hurt. This covers the medical expenses.

9. _r. Uninsured and Underinsured Motorist _ Keith let the auto insurance policy lapse. Keith rear-ended Ann’s truck today.

10. _d. Comprehensive _ Missy owes for damage to John’s car because she hit him while talking on her cell.

11. _m. Premium_ Monica’s life insurance costs more but includes a savings component.

12. _s. Whole Life__ Pat insures his business partner, Chuck, with a $1 million life insurance policy.

13. __m. Premium__ Rob gets a bill in the mail from ABC Insurance Company for $125.

14. __h. Insurance Company/Insurer _ Ross contacted this business when he had an automobile accident.

15. _n. Property Damage Liability _ Tammy hit a telephone pole and did over $2000 damage to her car.

16. _e. Financial Responsibility Law __ This requires Joe to buy liability insurance prior to getting a license plate.

17. __l. Medical Payments __ Thomas shut the trunk on his thumb and went to the emergency room.

18. __i. Insurance fraud_ Tony and Chris staged an auto accident to collect claim benefits.

19. _n. Property Damage Liability_ Wanda’s car was damaged by hail during a storm.

20. _b. Bodily Injury Liability_ An ambulance transported Melanie to the hospital after the other car crossed the center line and caused a wreck.

Explanation:

Appropriate terms:

a. Actual Cash Value

b. Bodily Injury Liability

c. Collision

d. Comprehensive

e. Financial Responsibility Law

f. Homeowner’s

g. Insurable Interest

h. Insurance Company/Insurer

i. Insurance fraud

j. Insured

k. Joint Insurance

l. Medical Payments

m. Premium

n. Property Damage Liability

o. Renter’s

p. Risk management

q. Underwriter

r. Uninsured and Underinsured Motorist

s. Whole Life

4 0
3 years ago
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