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loris [4]
3 years ago
12

Limitations of fiscal policy as a stabilization tool

Business
2 answers:
kap26 [50]3 years ago
3 0

Answer:

The Correct Statement is "Discretionary fiscal policy is less effective than is implied by the early Keynesian view".

Explanation:

The growth within the government spending once the budget is in the recession is operative to extend and to the financial gain. However, not decline the rate of interest. The budget throughout recession is during a liquidity deception. The rate of interest is at lowest and also the LM curve is horizontal at small levels of financial gain.

The growth within the government spending ends up in a rightward move of the IS curve that will increase the financial gain. This is often as a result of that the rate of interest is at such a coffee level that the rise within the speculation by the govt. couldn't displace the non-public asset.

Conversely, the Keynesian or non-Keynesian approve that economic policy has its restriction to extend the financial gain throughout a recession.

The unrestricted economic policy has downside to extend the extent of financial gain because it could be a move of the supply of asset from non-public organization to public organization.

Ivahew [28]3 years ago
3 0

Answer:

Option C is correct -  discretionary fiscal policy is less effective than is implied by the early Keynesian view.

Explanation:

When the economy is in recession, an increase in government expenditure is effective to increase the income but not to decrease the interest rate. During the recession, the economy is in a liquidity trap. At low levels of income, the interest rate is at a minimum and the LM curve is flat.

The increase in government expenditure leads to a rightward shift of the IS curve which increases the income. This is because the interest rate is at such a low level, that the increase in government investment could not crowd out the private investment.

Notwithstanding, the Keynesian and non-Keynesian economists agree that fiscal policy has its own constraints to increase the income during a recession.

The discretionary fiscal policy has a problem of increasing the level of income as it is a source of investment from private enterprise to public enterprise.

Thus, the discretionary fiscal policy is less effective than is implied by the early Keynesian view.

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What is the SBA intended to do ?
Firlakuza [10]

Answer:

The U.S. Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters". The agency's activities are summarised as the "3 Cs" of capital, contracts and counselling.

SBA loans are made through banks, credit unions and other lenders who partner with the SBA. The SBA provides a government-backed guarantee on part of the loan. Under the Recovery Act and the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee in order to strengthen access to capital for small businesses after credit froze in 2008. The agency had record lending volumes in late 2010.

SBA helps lead the federal government's efforts to deliver 23 percent of prime federal contracts to small businesses. Small business contracting programs include efforts to ensure that certain federal contracts reach woman-owned and service-disabled veteran-owned small businesses as well as businesses participating in programs such as 8(a) and HUB Zone. Another resource the SBA launched earlier this year is the SBA Franchise Directory, aimed to connect entrepreneurs to lines of credit and capital in order to grow a business.

SBA has at least one office in each U.S. state. In addition, the agency provides grants to support counselling partners, including approximately 900 Small Business Development Centers (often located at colleges and universities), 110 Women's Business Centers, and SCORE, a volunteer mentor corps of retired and experienced business leaders with approximately 350 chapters. These counselling services provide services to over 1 million entrepreneurs and small business owners annually. President Obama announced in January 2012 that he would elevate the SBA into the Cabinet, a position it last held during the Clinton administration,thus making the Administrator of the Small Business Administration a cabinet-level position.

Explanation:

3 0
3 years ago
alderwood estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. what is the balanc
gladu [14]

After accounting for bad debt expense, the remaining amount in the allowance for doubtful accounts is $7,950.

<h3>What is bad debt?</h3>

Bad debt, sometimes referred to as uncollectible accounts expense, is a sum of money owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for a variety of reasons, frequently due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency. Depending on accounting practices, regulatory considerations, and the institution provisioning, there are many technical definitions of what a bad debt is. Bank loans in the USA are referred to as "problem loans" if they are more than 90 days overdue. Accounting sources recommend deducting the entire amount of a bad debt from profit and loss or from a provision for bad debts as soon as it is anticipated.

To learn more about bad debt, visit:

brainly.com/question/28138659

#SPJ4

7 0
1 year ago
Which of the following is NOT a benefit of putting money in a savings account?
mote1985 [20]

I 'm not sure but the answer might be A.

4 0
3 years ago
Hilda and Hyatt paid $7,875 last year in mortgage interest, $4,200 in principal payments, $1,850 in property tax, $840 in mortga
olga55 [171]

Answer:

Mortgage interest of $7,875 and property taxes of $1,850.

Explanation:

A tax deduction can be defined as the total amount of money that one can deduct to lower their tax liability. More tax deductions always implies a reduced tax liability. In dealing with mortgage payments, tax deductions should be considered carefully to determine how much one tax one needs to pay. The following mortgage expenses are considered for deductions;

1. Mortgage interest

A mortgage interest deduction is a deduction that allows homeowners to subtract the interest on the loan they used to pay for the purchase, improvements or building of a home. In our case, Hilda and Hyatt are liable to a deduction of $7,875.

2. Property tax

In general, state and local property taxes are eligible to be deducted from the federal income taxes of a property owner. The only taxes that are deductible are state, local and foreign taxes levied for public welfare. They do not include services like home renovation and trash collection. The federal tax as of 2018 for property tax was capped at a total of $10,000. This means that any property tax value below $10,000 was eligible to a property tax deduction of that amount.

3 0
3 years ago
Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of
Pepsi [2]
Mike brought 100 shares costing $53 each.
Total costs of shares= 100*53
=$5300

He got dividends of $1.45 per share. A dividend is money that is earnt back from a share.
Total dividend amount = 1.45*100
=$145

I'm assuming that Mike sold his shares at the end of the year. He sells for $60 each.
Total sales amount=60*100
=$6000

The rate of return in this instance can be defined as the amount of money made back from a share.

Rate of return= total earnings/ costs

Total costs= $5300
Total earnings=$6145

6145/5300=1.1594
=15.9%

Hope this helps! :)
4 0
3 years ago
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