An economy is experiencing a high rate of inflation. The government wants to reduce consumption by $60 billion to reduce inflationary pressure. The MPC is 0.75. By how much should the government raise taxes to achieve its objective? Multiple Choice: Choose one. - $80 billion - $45 billion - $60 billion - $240 billion
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- 10. If there is an inflationary gap of $400 Billion and the MPS is .2, how much would taxes have to increase to close the gap? acerAn economy is experiencing a high rate of inflation. The government wants to reduce consumption by $36 billion to reduce inflationary pressure. The MPC is 0.8 By how much should the government raise taxes to achieve its objective? A. $9 billion B. $28 billion C. $7 Billion D. $180 Billiona. An Inpatient mental health hospital wants to estimate the effect of the new a. product on its budget. b. The state Medicald program wants to estimate the effect of the new product on its budget. C. The governor of your state wants to estimate the effect of the new product on the state budget. 3. Based on the following costs from a retrospective analysis, what is the 2019 value for the three alternatives using a medical consumer price index (MCPI) inflation rate of 2.5% per year? Year Alternative 1 cost (Php) Alternative 2 cost (Php) Alternative 3 cost (Php) 2016 | 12,000 2017 32,000 2018 32,000 2019 18,000 | 17,000 | 17,000 28,000 |30,000 20,000 21,000 21,000 | 21,000 discount ate, what is the 2020 present value of the costs of the three alternatives
- if q new shirt cost $34.99 and the sales tax is $2.10 the sales tax rate is Answers: A. 2% B. 4% C. 6% D. 8%Consider an economy where the marginal propensity to save is 0.15; the marginal propensity to import is 0.05 and the marginal propensity to tax is 0.2. If there is an increase in government spending of $150 million, by how much would national income increase? (a) National income would increase by $350 million (b) National income would increase by $375 million (c) National income would increase by $210 million (d) National income would increase by $240 millionwhat is the effects of indirect taxes on inflation and demand.
- How will the deficit for the bottom line budget of $3.1 trillion affect the economy?Fiscal drag is where Select one: a.there is a lag in government spending having any effect. b.increases in nominal wages push taxpayers up tax brackets. c.increases in government spending hold back economic growth. d.taxpayers look for ways to avoid paying tax they perceive is unfair.consumers increased consumption by a relatively small amount in 2008 and 2009 because thet believe the tax cuts temporary. true or false
- If the MPC is 0.5, the tax multiplier is Select one: a. -1 b. -2.5 C. -1.67 d. -2a ssume HPC =0.80 and that taxes are at by64billion goverment purchases are increused by $4billion Accord ing to keynesian analy sis (fiscal policy) How mich will ŘGDPchang e? will it increase or deciease?What is the importance of studying the national budget and how it will affect our economy?