Calculate the new consumption schedule

Reference no: EM13198628

Now suppose a proportional tax with a 10 percent tax rate is imposed instead of the regressive tax. Calculate and graph the new consumption schedule, and note the MPC and the multiplier.

GDP, Tax, percent DIs,
billions Consumption after tax, billions
$100 % 10 90 ? (need help)
200 %
300 %
400 %
500 %
600 %
700

MPC for proportional tax consumption schedule = .
The multiplier for the proportional tax consumption schedule =

Reference no: EM13198628

Questions Cloud

Find the dimensions of the court : The perimeter of a certain basketball court is 266 ft, and its length is 35 ft more than its width. find the dimensions of the court.

How wide is the parking lot : A downtown parking lot is 360 feet long. It's length is 4 times its width. How wide is the parking lot? Let the width = x

Energy risk hedging using swaps : We focused on the futures markets and how simple hedges can be accomplished using exchange-traded contracts. Energy Risk Hedging Using Swaps, Spreads and Options

Explain what are the basic and non-basic variables : Write down the LP which gave rise to the above tableau. b) What are the basic and non-basic variables?

Calculate the new consumption schedule : Now suppose a proportional tax with a 10 percent tax rate is imposed instead of the regressive tax. Calculate and graph the new consumption schedule, and note the MPC and the multiplier. GDP, Tax, percent DIs

Find the amount that remains : After spending $4000 for tables and $2200 for chairs, a convention center manager finds that 20% of his original budget remains. Find the amount that remains. Round to the nearest dollar.

State the principles of unity and variety apply to all music : The principles of Unity and Variety apply to all music, regardless of composition style or historical period. Now that you are familiar with the concepts in the first section of the course (Basic Musical Concepts), and you have seen how they work o..

What is the co alignment principle and why is it important : What is the co alignment principle and why is it important? How can a company measure its success of applying the co alignment principle? What are three ways IT has helped the hospitality industry? How are each of these three ways attributed to the c..

What is the mass of a cube of lead : The mass of a cube of iron is 385 g. Iron has a density of 7.87 g/cm3. What is the mass of a cube of lead that has the same dimensions?

User Account

All Pages