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olya-2409 [2.1K]
2 years ago
7

Calculate the government purchases multiplier if the marginal propensity to consume equals 0.75, the tax rate is 0.2, and the ma

rginal propensity to import equals 0.3.
Business
1 answer:
Setler79 [48]2 years ago
5 0
The formula for calculating the government purchases multiplier is base on the formula in getting the marginal propensity which equals to the change in the consumption over the change in the income. In the problem, by following the formula and other computations, the purchases multiplier would be 1.43
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On January 2, 2018, Hernandez, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annu
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2. Conversion Costs= Direct labour + Manufacturing Overheads

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3. Product Costs = direct material+ direct labour+ manufacturing overheads

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