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#1
04-08-2002, 10:35 AM
 drctypea Member Join Date: Feb 2002 Location: nyc Posts: 547
question course 2

these are two questions from how to pass manual that are irking me:

1. government gives a 100 tax rebate. national income goes up by 370. tax rate is 25%. what is the savings rate. he gives the savings rate as 10%. working backwards and using his number i get 307 as the rise in national income. am i doing something wrong or is there a possible misprint in this question (or his answer)?

2. people spend an extra 10 cents on imports and an extra 80 cents on consumption. tax rate is 20%. what is the effect of a 250 tax rebate on nationa income. he is getting 961. i get something different:

250
1- (.8*.8) + .1

this gives me 543 and change. however if your denominator is 1 - ((.8*.8)+.1)) you get his answer. i think my denominator is correct based on the formula given in the study note. if anyone could let me know if this is my error of his i would appreciate it.

thanks!
#2
04-08-2002, 10:36 AM
 drctypea Member Join Date: Feb 2002 Location: nyc Posts: 547
get that smiley face out of there

that should be .8 X .8
#3
04-08-2002, 10:37 AM
 drctypea Member Join Date: Feb 2002 Location: nyc Posts: 547

(.8 X .8)

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