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Mrac [35]
1 year ago
15

if keynesian economists were analyzing the oncoming recession starting in 2007 from the housing market crash, what might they ha

ve predicted?
Business
1 answer:
liraira [26]1 year ago
3 0

According to the Keynesian school of thoughts, the key factors that determine equilibrium output is aggregate demand. With the crashing of the housing market, there is a deep decline in household wealth because a significant fraction of household wealth is in the form of housing. Reduced wealth leads to reduced consumption, which lowers aggregate expenditure.

<h3>What is meant by household wealth?</h3>

Household wealth is the difference between the value of a household's assets and the value of its liabilities and is one of the key determinants of private consumption.

To learn more about Household wealth, refer

brainly.com/question/14326532

#SPJ4

Complete Question is,

a. A decline in household wealth leading to a decrease in consumption expenditure.

b. Expected future incomes increasing and an increase in home purchases.

c. Declining tax revenues with cause a decrease in government spending.

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TEA [102]

Answer:

C. By realizing gains through increase in share price and cash divideneds.

Explanation:

For most corporations, the management must strive to ensure the firm is doing well in the market space. Once a company is doing well, it will affect its share price positively on the stock exchange.

An increase in the share price of fim is a gain to the firm and its corporate owners. I.e sharedholders. This means that the value of their investment in the firm has appreciated.

Furthermore, the firm must try to make profit which is one of the reason of being in business. A firm that is making profit will be able to declare same at the end of the financial period, hence corporate holders(shareholders) would be have part in profit declaration through dividened.

7 0
2 years ago
Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the h
Nat2105 [25]

Answer:

B. decrease

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.  

4 0
2 years ago
Explain the importance of thoroughly checking your SAR and what steps you can
melisa1 [442]

Based on financial analysis, the importance of thoroughly checking your SAR is that "possessing an accurate SAR gives individuals the high tendency of earning a financial aid award."

Generally, the financial aid awards depend on the accurate details given in the SAR report.

However, should there be an error in the SAR report, here is the step you can take:

Either you correct or update your Free Application for Federal Student Aid, often referred to as FAFSA form.

The FAFSA form can be filled online.

SAR is an acronym for Student Aid Report.

Hence, in this case, it is concluded that SAR information is crucial for students that need financial aids.

Learn more here: brainly.com/question/24801462

5 0
2 years ago
CAN SOMEBODY PLEASE ANSWER ASAP WITH 100% CORRECT ANSWER
natima [27]

Answer:

d

Explanation:

4 0
3 years ago
________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not ea
boyakko [2]

Answer: PRODUCT DIFFERENTIATION

Explanation:

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This strategy can create a competitive advantage for goods that will ensure that the company maintains a dominant place in the market.

7 0
3 years ago
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