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2 years ago

The proposition that increases in the government budget deficit has no effect on aggregate demand is called the

1 answer:

3 0

The proposition that increases in the government budget deficit has no effect on aggregate demand is called the Ricardian Equivalence Theorem.

<h3>What is Ricardian Equivalence Theorem?</h3>

According to the economic principle known as Ricardian equivalence, paying government expenditures with current taxes or future taxes (as well as current deficits) will have similar impacts on the overall state of the economy.
Therefore, increased government expenditure that is financed by debt will not be able to stimulate the economy since investors and consumers are aware that the loan would eventually need to be repaid through future taxes.

The hypothesis contends that consumers will save because they anticipate paying higher taxes in the future to reduce the debt, which will counteract the rise in aggregate demand brought on by higher government spending.

Therefore, The proposition that increases in the government budget deficit has no effect on aggregate demand is called the Ricardian Equivalence Theorem.

Know more about Ricardian Equivalence Theorem with the help of the given link:

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If a company is given credit terms of 2/10, n/30, it should________.

diamong [38]

Answer:

(A) pay within the discount period and recognize a savings.

Explanation:

The given credit terms of 2/10, n/30 means

If the payment is paid within 10 days so 2% discount is given and the total credit period given is 30 days

Suppose we take an example

A buys the merchandise of goods from B for $10,000 on April 1. The payment is doe by A on April 7

So, the net payment is

= $10,000 - $10,000 × 2%

= $10,000 - $200

= $9,800

The $200 shows the discount which A avails and termed as a savings

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3 years ago

The following information is available for the year ended December 31: Beginning raw materials inventory$12,000 Raw materials pu

posledela

Answer:

Direct material used= $88,600

Explanation:

Giving the following information:

Beginning raw materials inventory$12,000

Raw materials purchase 88,000

Ending raw materials inventory 11,400

To calculate the direct material used in production, we need to use the following formula:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 12,000 + 88,000 - 11,400

Direct material used= $88,600

3 0

3 years ago

Which change is illustrated by the shift taking place on this graph?

pantera1 [17]

Answer:

i just took this quiz its B

Explanation:

7 0

3 years ago

Read 2 more answers

John was driving his car in a careless way, failing to drive as a reasonably prudent person would under the driving conditions.

Ilia_Sergeevich [38]

Answer:

1. If this law of contributory negligence applies to the state, then Ramona will receive no compensation for the damages she sustained.

2. If this law of comparative negligence applies to this state, then Ramona will get 100% - 20% = 80% of the damages incurred in the accident, from John which will be $80,000

Explanation:

In contributory negligence, the defense completely bars plaintiffs from any recovery if they contribute to their own injury through their own negligence.

If this law of contributory negligence applies to the state, then Ramona will receive no compensation for the damages she sustained.

In comparative negligence, the plaintiff's damages is award by the percentage of fault that the fact-finder assigns to the plaintiff for his or her own injury i.e the plaintiff's damage compensation is reduced by percentage of his/her percentage of fault.

If this law of comparative negligence applies to this state, then Ramona will get 100% - 20% = 80% of the damages incurred in the accident, from John

this is 80% of $100,00 which is equal to $80,000

8 0

3 years ago

Would the outcome have been different if the roles of board chairman and CEO in BP had been combined, as in many large American

hram777 [196]

$\huge \text{Answer:}$

In many companies, the chief executive officer (CEO), who holds the top management position in the company, also serves as chairman of the board. This is often the case with companies that have grown rapidly and still retain the initial founder in those roles.

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3 years ago