1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
denis-greek [22]
3 years ago
11

Use the IS-LM graphs to answer this question. Suppose there is a simultaneous increase in government spending and reduction in t

he money supply. Explain what effect this particular policy mix will have on output and the interest rate. Based on your analysis, do we know with certainty what effect this policy mix will have on investment? Explain.
Business
1 answer:
Bad White [126]3 years ago
5 0

Answer:

When there is a simultaneous fiscal expansion policy (increase government spending) and a monetary contractionary policy (decrease in money supply), the interest rate (price of money) will increase. On one hand, the supply of money decreases (- money supply) and on the other the demand increases (+ spending), therefore, the equilibrium price of money will increase.

When the interest rates increase, savings will increase, while borrowing will decrease. Since the money supply is decreasing, the total level of investment will probably decrease also, since the higher savings will be offset by higher costs.

You might be interested in
Which of the following is not a factor of production
serg [7]

Answer:

Goods and Services is the correct answer.

Explanation:

6 0
3 years ago
What increases the competitive pressures associated with the threat of entry?
Archy [21]

Answer: E. When newcomers can expect to earn attractive profits

Explanation:

The Threat of Entry refers to the threat that companies that are already in the market face from companies that are looking to enter the market.

If the market is so profitable that newcomers can expect to make attractive profits, a lot of companies will come into the market to make said profits which will increase the competition in the market.

5 0
4 years ago
Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00
elena-s [515]

Answer:

The flexible-budget amount is $120,000

Explanation:

The flexible-budget amount is the same lump sum as the static budget.

Therefore, The flexible-budget amount is $120,000.

5 0
3 years ago
Based on this model, households earn income when (household/firms) purchase (factors/goods and services) in factor markets.
aalyn [17]

The model shows that households earn money when <u>Firms </u>purchase <u>Factors </u>in factor markets.

<h3>Interaction between the Household and a Firm </h3>
  • Households buy goods from firms thereby passing income to firms.
  • Firms buy labor from households.

Households therefore earn an income when firms decide to go to the factor market and buy a factor such as labor from households.

In conclusions, households and firms are interconnected.

Find out more on this interaction at brainly.com/question/1433471.

5 0
3 years ago
The owner of a store that sells fine-quality fabrics for home seamstresses bemoans the fact that few young women know how to do
podryga [215]

Answer:  This case is an example of <em><u>core competencies that further have turned into core rigidities.</u></em>

In this particular case , the store was capable of catering to the demands of the market. Thus providing excellent service and technical advice.

But with the dawn of an era, now the store is earning lower-than-average returns. Also this is to be pondered upon that in current era only few potential customers are able to appreciate the premium quality of the fabrics.

5 0
3 years ago
Other questions:
  • The term ssr/ss total is also called the select one:
    10·1 answer
  • If a company has 100 shareholders and $100,000 of initial capital with the purpose of investing in securities, this company:
    11·1 answer
  • While working at a clothing store, rachel was asked by a customer if they had any "fresh" clothes. rachel remarked that this sto
    11·1 answer
  • A family is the basic unit of a consumer sector.<br><br> Question 6 options:<br> True<br> False
    10·2 answers
  • The ________ attribute determines the increment in which the numbers in a spinner control increase or decrease.
    13·1 answer
  • The work of _____ on light was not widely regarded at the time because it was the opposite of what Newton (who was already wildl
    5·1 answer
  • During which month would you have the most time to devote to freelance floral projects?
    15·1 answer
  • The net income of Steinbach &amp; Sons, a landscaping company, decreased sharply during 2016. Mort Steinbach, owner and manager
    12·1 answer
  • Dickson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? N
    10·1 answer
  • What is the amount of tax paid for the year
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!