Answer:
b. opportunity cost
Explanation:
<u>The opportunity cost is a term for a process when one thing is chosen and the other alternatives are lost as a cost. </u><u>This is one of the key concepts in economics</u>, as it explains the gain, costs, benefits, and choices. It doesn’t only have to refer to the money cost, but to any loss, that is made during the process of choosing between the alternatives.
The profit and benefits of other choices are lost by making a decision to chose one thing, and benefiting it from it alone.
Answer:
The correct answer is option d.
Explanation:
A decrease in government spending will reduce the demand for loanable funds. This will cause the demand curve for loanable funds to shift to the left.
The leftward shift in the demand loanable funds will cause the interest rates to decrease. This reduction in the interest rate and investment tax credit will cause the quantity of loanable funds traded to increase.
Answer:
A, B and D
Explanation:
Expanding the money supply is an exercise of expansionary monetary policy.
This decision will first allow our tech startup to acquire cheaper loans and expand our operations, this expansion in operations will result in new employment opportunities and hence as a result, unemployment will be reduced assuming this is a general trend in the economy.
This decision also directly reflects an increased investment and hence the GDP on the whole and the investment part of GDP would both increase,
GDP = C + I + G + (X - M), where I = investment.
This change in macro economy will increase aggregate demand due to expansionary effects. Increase in imports is not conclusive as it may or may not happen depending upon the demand state.
Hope this helps.