If the MPC is 0.8 and government transfers to households decrease by $50 million, then equilibrium GDP will decrease by:

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Answer 1

The equilibrium GDP will decrease by $200 million if the government transfers to households decrease by $50 million.

Transfer payment multiplier = MPC / (1 - MPC)

Transfer payment multiplier = 0.8 / (1 - 0.8)

Transfer payment multiplier = 0.8 / 0.2

Transfer payment multiplier = 4

If the government transfers decrease by $50 million.

Equilibrium GDP will decrease by:

= $50 million * 4

= $200 million.

Therefore, the equilibrium GDP will decrease by $200 million if the government transfers to households decrease by $50 million.

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Related Questions

An investor buys a call at a price of $4.50 with an exercise price of $40. At what stock price will the investor break even on the purchase of the call

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Answer:

44.50

Explanation:

I think your just suppose to add the numbers together.

An investor buys a call at a price of $4.50 with an exercise price of $40. At 44.50, the stock price will the investor break even on the purchase of the call.

What is stock?

The term stock refers to the product are the ready to the sale for the bulk in the production. The stock is always in the bulk in items. The stock is the measured according to the quantity. The stock was ready to be delivered to the wholesaler.

According to the 44.50, the stock price will the investor break even on the purchase of the call.

The given amount was the based on the price of $4.50.

The exercise price of $40.

Determine was the stock:

Break even price: $44.50

40 +4.5 = 44.50

As a result, the 44.50 stock price will the investor break even on the purchase of the call.

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The strategy of delivering new, exciting, and unique products to the customers is known as a _____________ strategy.

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Differentiation strategy.

since her firm’s sales have increased from 3.5 to 4 percent, tanya has determined she would set her share of communication expenses at 4 percent of sales, which is an example of the use of the ________ method.

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When she determined to set her share of communication expenses at 4 percent of sales, it is an example of the use of the competitive parity method.

Competitive parity refers to when one want to achieve standard or average results as compared to others in your industry or within one's firm.

Here, because the firm’s sales have increased to 4%, she decided to set her share of communication expenses at 4% of sales

It is obvious she is acting because of the movement of internal situation (increase of firm's sales)

Thus, the scenario of method is definitely known as Competitive parity.

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The _____ must be prepared by the condominium owners association no more than 3 months prior to the date the completed certificate is delivered to the buyer.(a) Condominium Resale Certificate(b) Loan Assumption Addendum(c) Certificate of Reasonable Value(d) Title Commitment Letter

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The Condominium Resale Certificate must be prepared by the condominium owners association no more than 3 months prior to the date the completed certificate is delivered to the buyer.

The new chairman of the Ionian Central Bank (ICB) is preparing for her first board meeting. She is expected to recommend a monetary policy for the board to pursue. She decides to use the Taylor rule, which was originally developed for the U.S. Federal Reserve.

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Based on the information given, the output gap of Ionia will be -4% while the inflation gap will be -1%.

This is an incomplete question, the complete question is to calculate the output gap and the inflation gap. Ionia's output gap will be:

= (Current GDP - Potential GDP) / 100

= (96 - 100) / 100

= -4%

Since the inflation is running at 2% but the chairman considers an inflation that is 3% as being reasonable,

The inflation gap will be:

= 2% - 3% = -1%

Therefore, the output and inflation gap will be -4% and -1%.

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Divisions of the Fed known as ________ handle almost all the checks written against a bank in one city and presented for deposit to a bank in a second city.

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The division that belongs to Fed which is responsible for handling of checks written against a bank in a particular city, which also helps in  presenting this check for deposit at a  bank in a another city.

Check clearance can be explained as process of moving cash from a particular bank whereby a checks is drawn to the bank in which it was deposited.

The division that handles this is check clearinghouses and helps as intermediate for check clearing between banks.

Therefore, check clearinghouses is the correct term.

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supportive, value-based, and work facilitation are examples of the ________ element in house’s revised path-goal leadership model.

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Based on the components of the path-goal leadership model, supportive, value-based, and work facilitation are examples of Leadership behaviors elements in the House’s revised path-goal leadership model.

The other significant elements in House's revised path-goal leadership model include the following:

Follower's characteristics;Task Characteristics.

House R.J was 1971 started these elements in his work titled "A Path-Goal Theory of Leader Effectiveness."

These elements define a different aspect of effective leadership.

Hence, in this case, it is concluded that the correct answer is "Leadership behaviors."

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The simple interest on $400 at 5% per annum for 2 years is.:

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The simple interest amount that $400 principal will earn in 2 years at the rate of 5% is $40.

Data and Calculations:

Principal amount = $400

Simple Interest rate = 5% p.a.

Time = 2 years

Simple interest amount = $40 ($400 x 5% x 2)

The simple interest does not enjoy the power of compounding that increases savings.

Thus, the simple interest that the principal will earn in 2 years at the rate of 5% is $40.

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If+d+0+=+$1. 75,+g+(which+is+constant)+=+3. 6%,+and+p+0+=+$32. 00,+what+is+the+stock's+expected+total+return+for+the+coming+year?.

Answers

Answer:

$ 102 . 33

Explanation:

Fe2O3 + 3 CO → Fe + 3 CO2

Answers

Answer:

product 2FeO3+3CO2

Explanation:

When a company issues no-par common stock, the ______. Multiple select question. cash inflow is classified as a financing activity

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When the company issues no-par common stock, then, the:

entire amount of the proceeds will placed in Common Stock account. the cash inflow will be classified as a financing activity.

The no-par common stock is a stock issued without a par value.

The value of the no-par common stocks is determined by price that the investors want to pay on the open market.

In conclusion, the entire amount of the proceeds will placed in Common Stock account and the cash inflow will be classified as a financing activity.

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Type the correct answer in the box. Spell all words correctly.

What is a continuous discussion to bring out innovative ideas from employees?

A _____ session is a continuous discussion to bring out innovative ideas from employees. (Using Plato for this)

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The name which is given to the session that is a continuous discussion to bring out innovative ideas from employees is called:

Brainstorming

According to the given question, we are asked to state the  name which is given to the session that is a continuous discussion to bring out innovative ideas from employees.

As a result of this, we can see that when a group of workers sit down together to bring out a new idea that would be innovative  to their company, then we can say that they are brainstorming because they bring ideas that would improve overall business and profit

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________ is a communication process in which sales associates help customers satisfy their needs through face-to-face exchanges of information.

Answers

Answer:

online marketing

Explanation:

Through there u can communicate face to face

While workers in the United States are more task oriented and require information to do their jobs, workers from Korea are more motivated by strong relationships and developing trust to do the same job. That is because Korea is a ______ context culture and the U.S. is a ______ context culture.

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Considering the situation described above, it is concluded that Korea is a High context culture, and the U.S. is a low-context culture.

A high context culture is a type of culture that is characterized by collectivism and an implicit form of communication.

On the other hand, a low context culture is a type of culture that is associated with direct verbal interaction and individualism.

It is no secret that the United States promotes individualism or independence as a society which is a form of low context culture. In contrast, the Korean culture promotes stability and group relation, which is a form of high context culture.

Hence, in this case, it is concluded that Korea has high context culture while the United States has a low-context culture.

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Witch method of commuting is most likely to reduce your need to go to the gym or get a treadmill

Answers

Answer:

Walking or using of bicycle

Explanation:

Use of legs are needed in both method of commuting. Leg muscles will be worked up and it also produces sweat that is equivalent to gym exercise

the grand strategy of isolationism is interlinked with notions of _____, which promotes the construction of political and economic barriers between domestic and international factors.

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The grand strategy of isolationism is interlinked with notions of protectionism, which promotes political and economic barriers.

Isolationism was a political policy that was undertaken by the United States of America. This caused them to be uninvolved in international affairs especially in Europe and in Asia.

Protectionism is a form of isolationism. It is aimed at protecting the home or the domestic country from foreign competition through the use of quotas, tariffs etc.

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1) Explain in brief the creations of controlled environment for off season vegetable farming.
2)Introduce off-season vegetable farming with its technique & advantages.​

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Answer:

1.the off season vegetable production can be obtained by different ways such as taking use of and utilise various agro climatic condition improve writing choosen adjustment of planting time making plastic tunnels polythene house and permanent glass house to provide control environmental conditions.

2the of seasonal vegetable are those vegetable which can be grown in rainy season using technology The main advantage of off season vegetable is that ensure food security for example tomato can be grown every time using a tunnel of greenhouse technology are genetically modified seed.

An annuity refers to a a.principal payment. b.lump sum payment. c.balloon payment. d.series of equal cash receipts at fixed intervals.

Answers

The answer is D. The series of equal cash receipts at fixed intervals.

You are considering an investment in a municipal bond that has a yield of 5 percent. Your tax rate is 25 percent. What is your taxable equivalent yield

Answers

The taxable equivalent yield is 6.67%.

Given Information

Municipal bond has yield of 5%

Tax rate = 25 percent

Taxable equivalent yield = ?

The formula for use to derive the taxable equivalent yield is {Current yield on municipal bond / (1-tax rate).

Taxable equivalent yield = 5% / (1 - 25%)

Taxable equivalent yield = 0.05 / 0.75

Taxable equivalent yield = 0.06666666666

Taxable equivalent yield = 6.67%

Therefore, the taxable equivalent yield is 6.67%.

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Anchor Resort and Casino surveils its customers and employees through a complex network of recorded video; undercover security agents; and weighing chips, cards, and coins for key transactions. What potential disadvantage of monitoring employees should Anchor managers consider

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The potential disadvantage of monitoring employees that Anchor Resort and Casino managers do is that extensive monitoring can make employees feel that Anchor Resort doesn't trust them.

In a Casino where there is a high currency circulation and whose games can be more susceptible to fraud, it is necessary to have more regulation and monitoring, but when it becomes an excessive practice it can encourage employee turnover and demotivation.

There must be a mutual trusting relationship between a company and an employee, as a positive relationship generates greater job satisfaction, greater motivation and generates an organizational culture focused on development.

Therefore, Anchor Resort and Casino can develop a strategy to increase trust in the relationship among employees through training, open communication, feedback and encouraging positive practices in the company.

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match each label to the appropriate scenario. note that some labels may be used more than once, while other labels may not be used at all. additionally, some scenarios may apply to multiple labels, while other scenarios will only apply to one label.

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Demand and supply increases in this scenario:

Gasoline: a new housing development goes up. Several new gas stations are built nearby

Demand increases and supply decreases in this scenario:

Taxis: public transit workers at a popular tourist attraction go on strike as a holiday weekend approaches

Demand and supply decreases in this scenario:

Pumpkins: an early frost destroyed much of the pumpkin crop. A newspaper reports zucchini is better for pie than pumpkin.

Demand decreases and supply increases in this scenario:

Corn: news media run stories about people with corn allergies. The corn crop is unusually large.

The factors that lead to a change in the demand of a good

Change in the price of a substitute good: if the price of a substitute good increases, the demand for the good increases and if the price of the substitute decreases, the demand for the good decreases.

Reports: If a favourable report is released about a good, the demand for the good would increase. If the opposite is the case, the demand for the good would decrease.

Change in weather: When winter is approaching, the demand for winter coats would increase and it would decline in summer.

Factors that lead to a change in supply

A change in the number of suppliers: if the number of suppliers of a good increases, there would be an increase in supply of the good. If the number of suppliers declines, there would be a fall in supply.

Natural disaster: A flood would reduce the supply of a good.

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Which statement describes an advantage of buying a home?
A. Purchasing a home builds equity.
B. Homes depreciate over time.
C. Your landlord may force you to move.
D. Your taxes increase.

Answers

A. purchasing a home does build equity

- homes usually don’t depreciate over time.
- when buying a home you don’t have a landlord.
- property taxes may go up, but that’s not an advantage.

KRJ Enterprises reported this year sales of $404 million, earnings before income taxes of $102.4 million, and tax expense of $18.2 million. If sales are projected to increase by 3.8% next year, what would be the projected tax expense for next year

Answers

The KRJ Enterprises' projected tax expense for the next year is $18.87 million.

Data and Calculations:

Reported year's sales = $404 million

Earnings before income taxes =$102.4 million (25% of sales)

Tax expense =$18.2 million

The tax expense = 4.5% of Sales ($18.2.$404 x 100)

Projected sales for next year = $419.35 million ($404 x 1.038)

Projected tax expense = $18.87 million ($419.35 x 4.5%)

Thus, the projected tax expense for the next year is $18.87 million.

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Direct labor variances ______. Multiple choice question. can only be computed for differences in pay rates are computed in the same way as material variances are generally the responsibility of the human resources manager are broken into two components (price and usage)

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The direct labor variances are computed in the same way as the material variances.

In accounting, a direct labor variance means the difference between Standard cost for actual production and Actual cost in production.

Also, the material variances means the difference between the Standard cost and Actual cost of material purchased.

Hence, the Direct labor variances are computed in the same way as the material variances.

Therefore, the correct option is B.

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the ________ phase is the most important step in the sdlc process.

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The most important phase of the SDLC is the requirement gathering and analysis phase because this is when the project team begins to understand what the customer wants from the project.

The Requirement Gathering  phase is the most important step in the SDLC process.

What is SDLC  important phases?

Software Development Life Cycle is known to be the use of standard business practices to create software applications.

It is known to be divided into eight steps which are:

PlanningRequirementsDesign Build Document Test DeployMaintain

Conclusively, we can say that the Requirement Gathering  phase is the most important step in the SDLC process as it is the stage where all the information needed for the project or work is put together.

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True or false: Obtaining top management's leadership and commitment is not necessarily critical for diversity programs to succeed.

Answers

Answer:false

Explanation:

An accumulated deficit means a company has ______. Multiple choice question. a contra-asset account due to losses accumulated more net losses than net income Treasury Stock that it repurchased at a cost that was higher than the issuance price dividends in arrears

Answers

Based on accounting principles, an accumulated deficit means a company has "accumulated more net losses than net income."

This is because the accumulated deficit is generally considered to be a "negative retained earnings balance."

In other words, accumulated deficit is the total summation of the losses and dividends paid by a company that supersedes the profits gained by the company.

Hence, in this case, it is concluded that the correct answer is option B. "accumulated more net losses than net income."

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Tim purchased a DVD player and speaker system for his home. The total cost of his purchase was $587. 33. Using the stores credit plan, he made a $147. 00 down payment. What amount did he finance?.

Answers

The amount Tim financed with the store's credit plan is $440.33.

Data and Calculations:

Cost of DVD player and system system = $587.33

Down payment = $147.00

Amount financed with store's credit plan = $440.33 ($587.33 - $147.00)

The store's credit plan enabled Tim to purchase the items without making full payment immediately.

Thus, after making the down payment of $147, Tim financed the balance of $440.33 with the store's credit plan.

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Do you think it is fair for dealers to charge you more for a car they pay the manufacturer

Answers

Answer:

I dont think they should charge more

Explanation:

Answer:

In my opinion, No,

But this occurs only when demand is so high that dealers aren't struggling to make a sale, and it generally indicates that an MSRP is too low. In the rare case that dealers can't restock a particular vehicle fast enough, it's perfectly legal (and a savvy business decision) to charge more than the MSRP.

I hope this helps.

_____ is an insignificant value per share of capital stock specified in the corporate charter. Multiple choice question. Seasoned value Treasury Stock Par value Additional Paid-in Capital

Answers

The insignificant value per share of capital stock that is been set and introduced in the charter can be regarded as par value.

Par value can be explained as the value of a single common share which is been specified by corporation's charter.

This cannot be been  related to the actual value of the shares.

Therefore, par value is the correct term.

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