An increase in government spending of $200 million financed by a new tax of $200 million in an economy with a marginal propensity to consume of .90 could result in an increase in nominal GDP (assuming a closed economy with no leakages) of up to how much? (a) $0; (b) $2,000 million; (c) $180 million; (d) $200 million.

(d) $200 million.

Explanation:

For computing the increase in nominal GDP first we have to determine the net tax which is equal to

= 0.90 ×$200 million

= $180 million

So, the net increase in government spending is

= $200 million - $180 million

= $20 million

And, we know that

Multiplier = 1 ÷ (1 - MPC)

= 1 ÷ (1 - 0.9)

= 1 ÷ 0.1

= 10      

So, the increase in nominal GDP is

= $20 million × 10

= $200 million

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.

​participate in networking opportunities that allow you to get to know potential clients, other entrepreneurs, influential people in your community, etc. focus on doing everything you can to cultivate posting word of mouth advertisin