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Thepotemich [5.8K]
1 year ago
13

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

Business
1 answer:
dlinn [17]1 year ago
3 0

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

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

brainly.com/question/13163644

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James used $250,000 from his savings account that paid an annual interest of 15% to purchase a hardware store. After one year, J
Alexus [3.1K]

The economic profit is $320,000-$250,000=$70,000.

Economic earnings or loss is the distinction between the sales received from the sale of an output and the costs of all inputs used, as well as any opportunity prices. In calculating financial income, opportunity charges and explicit costs are deducted from revenues earned.

Income is the financial metric that suggests an entity's economic advantage or sales from any enterprise or funding interest. monetary profit is cash earned after taking explicit and implicit costs into account.

Profit is the financial metric that shows an entity's financial advantage or sales from any commercial enterprise or investment pastime. economic earnings are cash earned after taking explicit and implicit prices into consideration.

Learn more about economic profit here: brainly.com/question/24477585

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5 0
1 year ago
The private internet system that links government supercomputer centers and a select group of universities is called __________.
dlinn [17]
My best guess is "intranet" (NOT "internet").
8 0
3 years ago
Match the items.
Igoryamba

Answer:

D --> 3

B --> 2

A --> 1

C --> 4

Explanation:

1.- The company should pick the most probable outcome when possible to evaluate liabilities, and only recognize revenues and assets with certain.

Between two  favorable figures, it will pick the lowest if it is not certain about the second outcome.

2.-The accounting should disclosure all information useful for third parties to make knowledgeable decisions about a company

3: the accounting should keep the same method over the years, so the assets valuation follow a certain logic. If the accounting change method every year, then the valuation of the assets will differ from period to period. This will make the books of previous year difficult to compare with the current year.

4.- The company needs to show any important data which is significant to the business

6 0
2 years ago
Insider trading is when people buy or sell stocks based on
stiv31 [10]

Answer:

B

Explanation:

Insider trading when you trade with non public information (you are an insider) and it can be illegal.

Wiki

Insider trading is the trading of a public company's stock or other securities based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal. This is because it is seen as unfair to other investors who do not have access to the information, as the investor with insider information could potentially make larger profits than a typical investor could make.

8 0
3 years ago
Read 2 more answers
Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers. Delux was recently approa
Anton [14]

Answer:

Imagination Station is engaging in Vertical Integration.

Explanation:

Vertical Integration is a business strategy whereby a firm acquires businesses that provide the supplies it needs to make its products or that makes and sell its products.

In this context, Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers and was approached by Imagination Station, a large computer manufacturer about purchasing their company.

4 0
3 years ago
Read 2 more answers
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