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The multiplier effect of an increase in government purchases of goods and services is larger than the multiplier effect of a tax cut because: A. initially some of the tax cut will be saved while all of the government purchases will be spent. B. many households fail to file their income tax and claim their refund. C. the government pays a higher price than households for the same goods and services. D. production of the goods and services the government purchases has a bigger impact on real GDP than production of consumer goods.
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Business, 22.06.2019 20:00, LJ710
Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?
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