The president of vulcan hires you as an economic consultant. he is concerned that the output level in vulcan is too high and that this will cause prices to rise. he feels that it is necessary to reduce output by $10 billion. he tells you that the mpc in vulcan is 0.6. which of the following would be the best advice to give to the vulcan president? a) reduce government purchases by $4 billion b) reduce government purchases by $10 billion. c) increase taxes by $2.5 billion. d) increase taxes by $10 billion

Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)