Expansionary fiscal policy refer to lowering taxes or increasing government spending. When the government lowers taxes, it increases the disposable income of the consumers, thereby increasing the aggregate demand for goods in the economy. Similarly, when the government increases government spending it directly increases the aggregate demand in the economy. Both resulting in economic growth.
On the other hand, Contractionary fiscal policy is related to increasing taxes or lowering government spending. increase in Taxes will lower disposable income and thereby decrease the aggregate demand in the economy. Similarly, less government spending will directly lower aggregate demand and cause a reduction in economic growth.
Answer:
Send information about the benefits of using an employer math for retirement
Explanation:
I got it right.
Answer:
The correct option is C,the investment decreases by $418,950.
Explanation:
The equity method of accounting for stock investment requires that the investor should increase its investment value by the share of net income in a year and decrease same by the amount of cash dividends received from the investee company.
However,the opposite would be the case of net loss recorded in the year under review(share of net loss would be deducted from investment value) as shown below:
Share of net loss ($1,602,000*25%) ($400,500)
share of cash dividends($73,800*25%)($18,450)
total reduction in investment value ($418,950
)
Answer:
14.84%
Explanation:
Effective annual return (EAR) = (1 + ( r / m) ^m -1
APR = m (( 1 + EAR) ^( 1/m) - 1)
where m = 365 since it is compounded daily
APR = 365 (( 1 + 0.16) ^( 1/365) - 1) = 14.84%
