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Hitman42 [59]
2 years ago
13

True or False: A tax cut that will last for only one year will have a greater impact on aggregate demand than a tax cut that is

expected to be permanent. True False
Business
1 answer:
gavmur [86]2 years ago
5 0

A tax cut that will last for only a year will not have a huge effect on the aggregate demand as the aggregate demand increases only when the tax cut is permanent.

The given statement is false.

<h3>What is a tax?</h3>

A tax is a liability imposed on the taxpayer to pay a specified sum to the government based on the income they have earned in the previous year.

When the cutting of taxes becomes permanent in the country, then the citizens can start to acquire more which will increase the spending. The families will expect that the tax cuts are for the longer term which now induces them to buy and spend more and also act as an addition to their incomes. This whole impact would eventually lead to rising in aggregate demand.

Therefore, the demand increases when the tax cuts are permanent rather than when tax cuts are for only one year.

Learn more about the tax cut policies in the related link:

brainly.com/question/13924294

#SPJ1

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Shareholders in a management company have all of the following rights except the right to vote: a to change the investment objec
vivado [14]

Shareholders in a management company have all of the following rights except the right to vote a to change the investment objective of the fund.(option A)

<h3>What are the rights of shareholders?</h3>

A shareholder is a person or group of people who have purchased shares in a public company. The shares gives the shareholders ownership rights in the company.

The shareholders can vote during annual general meetings on matters relating to dividends, membership of the board of directors and investment adviser.

To learn more about shareholders, please check: brainly.com/question/19162424

#SPJ1

7 0
2 years ago
Which of the following is NOT a valid principle of bottleneck​ management?
Gekata [30.6K]

Answer: Option (B)

Explanation:

In project and production management,  bottleneck is referred to as one of the process under chain of processes, so that reduced limited capacity tends to reduce capacity of whole chain. The result or outcome of having the bottleneck is the stalls in supply overstock, production, pressure from consumers and also the low employee morale.

8 0
3 years ago
Paul, a manager at a logistics company. Wants to have Emma, a temporary worker, handle customers’ queries. Paul’s colleague. Ali
andrew11 [14]

Answer:

5. Emma may not be as dedicated to the firm as other permanent employees

Explanation:

Logistics as a business activity is concerned with efficient movement of goods with least pilferage and spoilage and at the same time, as promptly as possible.

Handling customer queries requires utmost politeness, patience and humility and such a function is very sensitive since a small error or wrong attitude can drastically affect customer preferences and business sales.

In the given case, Ali's argument can only be strengthened by the fact that Emma is a temporary employee and it cannot be expected of her to discharge her duties with the same dedication as a permanent employee would.

Temporary employees know their term of employment beyond which they most likely seek job elsewhere. Whereas, a permanent employee would usually be more dedicated since he would have better sense of belongingness with the company.

5 0
3 years ago
Michael's, Inc., just paid $2.20 to its shareholders as the annual dividend. Simultaneously, the company announced that future d
Whitepunk [10]

Answer:

The maximum price that should be paid for one share of the company today is $54.895

Explanation:

The price of a stock that pays a dividend that grows at a constant rate forever can be calculated using the constant growth model of Dividend discount model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends. The formula for price today under this model is,

P0 = D1 / r - g

Where,

  • D1 is the expected dividend for the next period or D0 * (1+g)
  • r is the required rate of return
  • g is the growth rate in dividends

SO, the maximum that should be paid for this stock today is:

P0 = 2.2 * (1 + 0.048)  /  (0.09 - 0.048)

P0 = $54.895 rounded off to $54.90

5 0
3 years ago
A downhill ski area is experiencing a decline in the number of lift tickets sold, falling revenues, and inadequate profits. The
sukhopar [10]

Answer:

D. a 10 percent decrease in the average price of a lift ticket.

Explanation:

When Price elasticity is greater than 1, that suggests that the demand for that particular good or service is highly responsive to price or is price-sensitive . Furthermore, If price elasticity is greater than 1 then an increase in price will cause revenue to decrease.

Applying the above-stated principle to the given scenario, it has been stated that 'The estimated price elasticity of demand is 1.5.' implying that the demand for downhill ski is highly sensitive and responsive to changes in price.

Therefore, the only logical economic strategy to improve revenues will be to decrease price so that revenue can increase.

5 0
3 years ago
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