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Cloud [144]
2 years ago
9

________ are a form of tax and spending rules that can affect aggregate demand in the economy without any changes in legislation

.
Business
1 answer:
zlopas [31]2 years ago
6 0

Fiscal policies are a form of tax and spending rules that can affect aggregate demand in the economy without any changes in legislation.

  • To achieve economic objectives, fiscal policy entails adjustments to taxation or spending (government budget).
  • A fiscal policy example would be to alter the corporate tax rate. Fiscal policy: Modifications to Federal expenditure or tax rates with the aim of affecting the macroeconomy.
  • Fiscal policy is one way that policymakers can affect the overall demand. The aggregate-demand curve moves to the right in response to an increase in government spending or a decrease in taxation.
  • The aggregate-demand curves move to the left in response to a reduction in government spending or an increase in taxes. Fiscal policy is the method by which a government modifies its tax and expenditure rates to track and affect a country's economy.

Learn more about fiscal policy here brainly.com/question/9721459

#SPJ4.

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Answer:

1. In first example, supply curve moves to the left. Delivery curve moves to the left as supply is heading downward due to variables apart from rate change. In this scenario, the cost of output rises due to the current penalty, and vendors will be able to produce less at the same amount.

2. In second scenario, businesses are prosecuted for contaminating river water, rises in manufacturing prices and vendors will be able to produce worse at the same amount. The output curve then shifts for its left.

3. In third case the output curve will remain the same. That's since the quantities given does not change.

4. In this situation, the harm done by drilling must be cleaned up by the businesses. Hence, production cost rises, and vendors will be willing to provide worse at the provided price. The supply curves then shifts to the left.

3 0
3 years ago
What is the differents<br> between sole trading and partnership​
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According to the capital asset pricing model (CAPM), a capital budgeting project that has a beta equal to zero should be evaluat
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a. True

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from the CAPM formula we can derive the statemeent as true.

Ke= r_f + \beta (r_m-r_f)

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premium market = (market rate - risk free) 0.07

beta(non diversifiable risk) = 0

Ke= 0.05 + 0 (0.07)

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As the beta multiplies the difference between the market rate and risk-free rate a beta of zero will nulify the second part of the equation leaving only the risk-free rate. This means the portfolio is not expose to volatility

6 0
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Verify why the farmers' credit union chose to increase Farm B's line of credit but not Farm A's in the following scenario:
Shkiper50 [21]

Answer:

see below

Explanation:

he farmers must have considered the ability to repay back loans when making the decision. The ability of a business to meet its current obligations is expressed by the current ratio.

The current ratio or working capital ratio communicates a firm's ability to repay debts as they become due. The higher the ratio, the better.

the current ratio is calculated as current assets/current liabilities

For Firm A,

current ratio =$150,000/ $125,000.

=1.2

For Firm B,

current ratio =$100,000/$75,000

=1.333

Firm B has a better current ratio than Firm A. Firm B is in a better position to repay loans compared to Firm A.

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