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Sloan [31]
1 year ago
11

suppose that the economy enters a boom and becomes overheated. if the fed pursues countercyclical monetary policy but overreacts

, this causes output in the short-run to go
Business
1 answer:
Lena [83]1 year ago
8 0

Counter-cyclical fiscal measures are policy measures which counteract the effects of the economic cycle.

What is economic cycle.?

The four cyclical stages of the economy—expansion, peak, contraction, and trough—are collectively referred to as an economic cycle. The stage of the economic cycle we are in at the moment can be determined by variables like GDP, interest rates, total employment, and consumer spending.

Fiscal policy actions that counteract the effects of the economic cycle are known as countercyclical fiscal measures. When the economy is slowing, for instance, countercyclical fiscal policy actions might include raising spending on the government or lowering taxes to encourage economic recovery.

To learn more about economic cycle. visit:brainly.com/question/1253307

#SPJ4

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An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is
SIZIF [17.4K]
The answer is a valid contract. A valid contract occurs when both parties has expressed or had shown agreement when engaging to certain services or products as means of showing that they both have negotiate and came to an understanding of agreement with what they are pertaining to in which is shown above as the adults involved has an agreement of paying the bicycle that shows a valid contract.

5 0
3 years ago
A communication plan is a key component for giving guidelines on how to track project:________a. Issues.b. Costs.c. Defects.d. B
AfilCa [17]

Answer: a. Issues

Explanation:

A Communication plan for a project allows for easier information flow between the stakeholders in the project including the client, the company and the workers.

By setting standards on how and what should be communicated the plan will let the stakeholders know how to communicate any issues affecting the project. The plan will also let the stakeholders know how to track issues that will be reported.

3 0
3 years ago
A U.S.-based importer, Zarb Inc., makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs, or $
IRINA_888 [86]

Answer:

e. $638

Explanation:

payment to be made as per forward contract (IN $)

= 39960/ 1.682  

= $23757.43  

now the actual rate after 90 days is 1.638

payment at 1.638 rate = 39960/ 1.638

                                    = $24395.6  

loss by hedging = $24395.6 - $23757.43  

                           = $638.17

Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.

4 0
2 years ago
A higher marginal income tax rate reduces incentives to work because
svetoff [14.1K]
<span>An increase in the marginal income tax rate is likely to decrease the quantity of labor supplied. because the increase in the tax automatically reduces the profit of the firm. the management will always try to compensate their loss by taking necessary reforms or measures. the first and simplest method to reduce the loss is to cut down the expense by reducing the labour involved.</span>
7 0
3 years ago
Currently, a company has units of safety stock for a product located in warehouses. The company is contemplating expanding to wa
xz_007 [3.2K]

Answer:

The full question is <em>"Currently, a company has 59,000 units of safety stock for a product located in 9 warehouses. The company is contemplating expanding to 28 warehouses. The company believes that this increased safety stock inventory investment with the new locations will result in an additional $950,000 in revenue due to improved customer service. Assuming that each unit in safety stock inventory costs $4, is the expansion to 28 warehouses a potentially good idea? The proposed plan Y sense for the company because the change in total profit is $. Enter your response rounded to the nearest dollar and include a minus sign if appropriate.)"</em>

<em />

Current Total safety stock = 59,000

No. of warehouses = 9

Safety stock per warehouse = 59,000/9 = $6,555.56

New number of warehouses = 28

Increase in number of warehouses = 28 - 9 = 19

Increase in number of safety stock = 19 * 6,555.56 = 124,555.64

Cost of each unit of safety stock = $4

Cost of increased safety stock = $4 * 124,555.54

Cost of increased safety stock = $498,222.56

Additional revenue = $950,000

Since, additional revenue > additional cost of safety stock, the additional warehouses is a good idea.

Increase in profit = Additional revenue - Increased cost

Increase in profit = $950,000 - $498,222.56

Increase in profit = $451,777.54

Hence, The proposed plan makes sense for the company because the change in total profit is $451,777.54

3 0
3 years ago
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