Assume the marginal propensity to consume is 0.8 and potential output is $800 billion. if actual real gdp is $700 billion, which of the following policies would bring the economy to potential output? a. decrease taxes by $25 billion.
b. decrease government transfers by $25 billion.
c. decrease taxes by $100 billion.
d. increase taxes by $100 billion.

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale.required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse.b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this.c. explain the difference between sale of receivables with recourse as oppose to without recourse.