A person’s disposable income decreases, and his personal income remains unchanged. This is because of ______. a. Decreased personal taxes b. Increased personal taxes c. Unemployment reasons d. Increased corporate taxes
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- 7. Govt purchases increase by $87b and the MPC = .89. By how much will RGDP eventually increase? (round answer to two decimal places)(a) Explain the difference between government spending and the government Purchases of goods and services . Which is larger? (b) Explain why national income and gross domestic product would be essentially equal if there were no deprecation.Given a full employment level of GDP of 700 Trillion and a current level of 670 Trillion the government would want to Increase the interest rate in the economy Reduce government taxes Increase government spending Both A and C Both B and C
- Macroeconomics: An economy is experiencing a high rate of inflation. The government wants to reduce consumption by $36 billion to reduce inflationary pressure. The MPC is 0.75. By how much should the government raise taxes to achieve its objective? A. $6 billionB. $12 billionC. $16 billionD. $9 billion10) Suppose net taxes are $50 billion. Government spending is $125 billion. Investment is $50 billion and consumption is $100 billion. What is national savings? A) 50 billion B) -50 billion C) 75 billion D) -75 billion.An 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 Billion
- Increase in tax by the government: a. None of these b. Decreases the consumption by individuals c. Increases the saving by individuals d. Increases the consumption by individuals- If personal income taxes are increased, disposable income and consumption increase. stay the same. decrease. change in an unpredictable directionTheo, a single taxpayer, actively participates in a rental real estate activity. During the year, his total rental real estate income was $25,000. His only other income for the year was $180,000 in wages. He does not have any adjustments to income, nor does he have any expenses allocable to investment income. How much of Theo's income is subject to the net investment income tax? $0 $5,000 $25,000 $205,000
- Only typed answer and please don't use chatgpt Why will temporary tax increase be insignificant in reducing consumption expenditures by the amount expected a. Because viewed the tax increase as permanent. b. Because people choose to increase their savings. C become people viewed taco increases temporarily d. Consumption expenditure are not related to level of taxtation1. Suppose a closed economy hasnational income of $50 million,Investment of $2 million,Inflation rate of 5%, net tax rateof 15% and a budget surplus of$4 million. Find value of government purchases (G).3. The national consumption function of a country is C = 400 + 0.8Yd. The government only provides transfer payments of 100, without ever collecting taxes from its citizens. If the national income of the country is 1000. Determine: a. Consumption and savings of the people of the country. b. Disposable income for the people of the country. Please solve subparts a and b thank u