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1 year ago

If a fiscal policy change is going to exert a stabilizing impact on the economy, it must?

1 answer:

7 0

If a fiscal policy change is going to exert a stabilizing impact on the economy, policy must add stimulus to demand during a slowdown but it should restraint the demand during an economic boom.

Fiscal policy is the policy in which the government spending and taxation is used to influence the economy.

Governments generally use fiscal policy to promote strong as well as sustainable growth in the economy and reduce the poverty too.

The role and objectives of fiscal policy which gained importance during the recent global economic crisis is when the different governments stepped in to support financial systems.

Governments starts the growth, and also mitigate the impact of the crisis on vulnerable groups through the use of fiscal policy.

To know more about fiscal policy here:

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"Dave, I know that you are trained to work as a chemist and not to solve scheduling problems. But as lab manager, you are a fron

gizmo_the_mogwai [7]

Answer: D. supervisors gain experience in and are accountable for solving problems in their work units.

Explanation:

A chain of command is necessary in business because it diversifies authority such that decisions can be made faster.

It works by dividing employees into units which will answer to a manager. That manager will make decisions for the unit and this leads to decisions being made faster because everybody wouldn't have to go to upper management when they already have a manager.

Supervisors/ managers of these units are therefore accountable for their units and will gain experience from being so.

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3 years ago

A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free asset currently earns 2.7 percent. a. What is the

love history [14]

Answer:

6.75%

Explanation:

Data provided in the question:

Beta of the stock = 1.12

Expected return = 10.8% = 0.108

Return of risk free asset = 2.7% = 0.027

Now,

Since it is equally invested in two assets

Therefore,

both will have equal weight = $\frac{1}{2}$ = 0.5

Thus,

Expected return on a portfolio = ∑(Weight × Return)

= [ 0.5 × 10.8% ] + [ 0.5 × 2.7% ]

= 5.4% + 1.35%

= 6.75%

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3 years ago

'As fewer people buy gym memberships, the demand for running shoes will decrease and the price of a pair of running shoes will i

olchik [2.2K]

Answer: "The rise in the price of a pair of running shoes will increase the supply of running shoes".

This statement is false because a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase the supply of running shoes.

This occurs as the price of a pair of running shoes increases,therefore decreasing the demand and thus the supply will not increase.

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3 years ago

You own a building that has four possible uses: a cafe, a craft store, a hardware store, and a bookstore. The value of the build

Svetlanka [38]

Answer:

The opportunity cost = $2.5

Explanation:

Given:

You own a building that has four possible uses: a cafe, a craft store, a hardware store, and a bookstore. The value of the building in each use is $2,000; $3,000; $4,000; and $5,000, respectively.You decide to open a hardware store.

Question asked:

The opportunity cost of using this building for a hardware store ?

Solution:

As we know:

$Opportunity\ cost =\frac{What\ you\ sacrifice}{What\ you\ gain} \\ \\$

What you sacrifice = Value of a cafe + Value of a craft store + Value of a bookstore

= $2000 + $3000 + $5000 = $10,000

What you gain = Value of a hardware store

= $4000

Thus, the opportunity cost of using this building for a hardware store is $2.5

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3 years ago

A man uses a loan program for small businesses to obtain a loan to help expand his vending machine business. The man borrows $2

seraphim [82]

Answer:

The ammount due at the end of the loan adds for $27,456

Explanation:

If the payment is in full at maturity, the man must pay the principal of 26,000 plus the interest during the period of 4 years.

It is important to notice that the loan is done at simple interest, so the interest does not capitalize.

$Ammount$-due = 26,000 * (1 + 0.014 * 4) = 27,456$

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3 years ago