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mustafakhalil02
15.11.2019 •
Business
Initially, the economy is in long-run equilibrium. the aggregate demand curve then shifts $50 billion to the left. the government wants to change its spending to offset this decrease in demand. the mpc is 0.80. suppose the effect on aggregate demand from a change in taxes is 4/5 the size of the change from government expenditures. there is no crowding out. what should the government do if it wants to offset the decrease in aggregate demand?
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Ответ:
Answer
the correct answer is
Reduce taxes by $5.56 billion dollars. Increase expenditures by $5.56 billion dollars.
good luck ❤
Ответ:
Explanation:
1. NPV = -1,700,000 + 2,055,000 * (1-0.008) / 1.02
= $298,588.24
2. Yes order should be fulfilled
3. Break-even probability = 1 - 1,700,000 * 1.02 /2,055,000
= 1 - 0.843795
15.62%