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Which of the following best explains why a $7 billion tax cut can lead to a $9 billion increase in consumer spending in the short run?
A. Tax cuts increase disposable income, which leads to a higher national income and additional consumer spending.
B. Tax cuts reduce government spending, which encourages consumer spending.
C. Tax cuts reduce interest rates, which stimulates consumer spending and borrowing.
D. Tax cuts increase government transfer payments, which leads to a higher national income and additional consumer spending.
RC Cola is considering marketing a new, fruit flavored soft drink. It hires Mark-D Design to develop the can logo and design. RC calculates that a good design raises can sales and is worth $.75 million to them. Ex-ante, what is Mark-D’s expected prof..
In 1990, the Supreme Court of the United States found which Texaco had indeed violated antitrust law. Which law do you think Texaco was found guilty of violating.
Select a good that you are familiar with. What are the factors that shift the demand curve for this good? What are the factors that shift the supply curve for this good?
Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
1. Identify key processes in the organization, based on the perception and the allocation of responsibilities. 2. The tables contain primary source data.
Your son is graduating from high school and is about to enter the work force. He has developed a strong curiosity about our economic system and how it works
During Great Depression, businesspeople in United States were very pessimistic about future of economic growth and reluctant to increase investment spending even when interest rates fell. How did this limit potential for monetary policy to help al..
In 2013, the furniture store PB produced 13 mahogany desks. One of them is sold to Jeanine for $3,349, later that same year Jeanine sold the desk to Pamela for $1,919. The remaining desks were not sold to anyone that year and stay in PB's inventory a..
Wadjase Corp prepared a master budget that included $17,800 for direct materials, $28,000 for direct labor, and $15,000 for variable overhead, and $38,700 for fixed overhead. Wadjase Corp planned to sell 4,000 units during the period, but actually so..
Discuss utility and some of the properties about people's preferences. One is that "more is better ".do you agree that is always the case and if not do you have an example?
During the most recent recession General Motors and Chrysler lost huge sums of money in their operation (not counting government bailout money they could not assume they would get). How could they continue to operate at a loss?
What does it mean when asked; what are some considerations to remember given the different roles and people in the audience.
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