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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

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example below

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1. Intensive Distribution

2. Selective Distribution

3. Intensive Distribution

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3 years ago

Choose all that apply.

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I would recommend a savings account

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3 years ago

An accountant increases the price he charges for his services by 2 percent. In response, the demand for his services decreases

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Answer:

Decrease

Explanation:

The reason is that the price and demand are inversely proportional so if the price has been increased then the demand of the product will be decreased. Take the example of Bugatti Chiron, the price of the car is $19 million and total number of people that own is in tens this is because the buyers are less in quantity due to higher prices of the product. Same is the case here, if the accountant is going to charge high then his revenue will drop due to lower people are willing to buy its services.

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3 years ago

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Answer:

$69

Explanation:

Calculation for Central Park's taxable income

Pretax accounting income $80

Less Temporary differenceDepreciation (15)

($35 – $20)

Bad debt expense $4

($6 – $2)

Taxable income$69

($80-$15+$4)

Therefore Central Park's taxable income will be $69

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3 years ago