All categories

1 year ago

Expansion of the money supply during a recession, according to the keynesians, will?

1 answer:

3 0

According to the Keynesian approach an increase in the money supply increases real GDP by lowering interest rates which increases investment.

The Keynesian theory implied that during a recession inflationary pressures are low, but when the level of output is at or even pushing beyond potential gross domestic product, or GDP, the economy is at greater risk for inflation.

Keynesians do believe in an indirect link between the money supply and real GDP. They believe that expansionary monetary policy increases the supply of loanable funds available through the banking system, causing interest rates to fall.

Learn more about Keynesian here

brainly.com/question/1171653

#SPJ4

You might be interested in

Which of the following defines a short-term goal? career planning unit test. thanks!

Masteriza [31]

A short term goal is a goal that will only take a few hours to a few days, a goal that wont take much time

A unit test is a short-term goal.

Career planning could take years.

-TheOneandOnly003

4 0

3 years ago

Read 2 more answers

Free cash flow and financial statements The primary objective of the corporate management team is to maximize shareholder wealth

aliina [53]

Complete Question

The complete question is shown on the first uploaded image

Answer:

The correct option for first question is A

The correct option for second question is B

Explanation:

The correct option is A because the value of a firm depends on its ability to generate cash flow that is available to distribute to the company's investors, including creditors and stockholders.

For the second part the answer is B

This because a financial asset will have value only if it can generate future positive cash flows.

Also when valuating the cost at which the asset is acquired is not relevant

8 0

3 years ago

Suppose a small country has a comparative advantage in the production of consumer electronics, and it has one major electronics

zlopas [31]

Answer:

Imports create greater competition in the domestic marketplace.

Explanation:

Comparative advantage is defined as the ability of a company to produce goods at a lower opportunity cost than other competitors. They can now sell the goods at lower prices.

If the company in this scenario have competitive advantage in producing electronics then it is xheap for them to produce.

When they export electronics and import again, it can only mean that the imported electronics have a competitive edge that the company wants to take advantage of. For example higher quality than what is available locally.

4 0

3 years ago

Read 2 more answers

A local restaurant has promised to provide a combination of hamburger meal and hot dog meal at a local fundraiser. They have pro

Bezzdna [24]

Answer:

Minimize Z = 3x + 2y

Explanation:

Let x represent hamburger meal and let y represent hot dog meal. The objective is to minimize the total cost. The objective function will be

Z = 3x + 2y

The maximum capacity of restaurant is 200 meals while it has minimum cap for 100 meals.

6 0

3 years ago

The homeowner's property tax exemption will reduce an assessed valuation of $200,000 to:____.

inessss [21]

As per the rate of the tax, the valuation of $200,000 will become $193,000.

Given Data:

Valuation Price = $200,000

To Find:

After-Tax exemption Valuation= ?

Let us consider the general interest rate of the property. It would be about 3.5% which is 0.035.

According to the normal tax of about 3.5% will become $7000 which will be exempted from the total evaluation therefore it will become $193,000.

Solution:

Tax Value in $ =$200,000 x 3.5% = $7000

here we have the $7000 which is the amount of tax paid by the homeowner.

Putting the value of the tax;

Tax after exemption of tax value = $200,000-$7000

= $193,000

So, the $193,000 is the price after the deduction of tax by the homeowner.

For more questions like Home tax evaluation open the link below:

brainly.com/question/17132518

#SPJ4

3 0

1 year ago