Describing government spending
Suppose the marginal propensity to consume is 0.8, the marginal tax rate is 0.25, and the marginal propensity to import is 0.1. If the president wants to increase income by 500, his advisers would suggest that he increase government spending by?
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The office equipment has a scrap value of $300. The computer equipment has no scrap value. Calculate the depreciation for one month.
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