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nalin [4]
3 years ago
9

If the government is required to balance the budget and the economy falls into a recession, which of the actions is a feasible p

olicy response? cut taxes to encourage consumer spending invest in infrastructure increase government spending to stimulate the economy cut spending equal to the reduction in tax revenue What is a likely consequence of this policy? Unemployment falls due to the economic stimulus. The negative consequences of the recession are magnified. Consumer spending increases due to their ability to keep more of their after-tax income. There is hyperinflation due to an increase in aggregate demand.
Business
2 answers:
nika2105 [10]3 years ago
7 0

Answer:

The correct answer is: cut spending equal to the reduction in tax revenue.

The correct answer is: The negative consequences of the recession are magnified.

Explanation:

Recession is likely to cause a reduction in the aggregate demand, consumer income, and spending will decrease as well. As a result, the tax revenue to the government will fall as well.

A balanced budget means that government expenditures should be equal to revenue. So if the government wants to have a balanced budget it needs to reduce its spending by the same amount as the reduction in the tax earnings.

This will lead to a reduction in the aggregate demand further magnifying the effects of the recession.

docker41 [41]3 years ago
3 0

Answer:

The correct answer is: cut spending equal to the reduction in tax revenue.

Explanation:

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Willy makes proper use of the wiki feature on the company intranet when he ________. science forums
beks73 [17]

Answer:

Adds some updated features to product information, that way, he can effectively utilize the wiki feature as he so desires.

7 0
3 years ago
On a CVP chart, on either side of the break-even point, the vertical distance between the total sales line and the total cost li
DochEvi [55]

Answer:

The answer is:

Total loss to the left of the intersection

Total profit to the right of the intersection

Explanation:

Cost-volume-profit (CVP) analysis is a method that looks into the impact of how varying levels of costs and volume will affect the operating profit of a firm. This gives companies good understanding of the profitability of their products or services.

To answer the question above;

Total loss to the left of the intersection

Total profit to the right of the intersection

While the intersection is the break-even

5 0
3 years ago
Actor Sissy Spacek once objected to a series of movie scenes that included her smoking a certain brand of cigarettes. She was pr
Fiesta28 [93]

Answer:

C.product placement.

Explanation:

This is a paid product message aimed at influencing movie (or television) audiences via the planned and unobtrusive entry of a branded product into a movie or television program.

8 0
3 years ago
The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organiz
LenKa [72]

Answer: D. Common stock

Explanation:

Common stock refers to the security which represents ownership in a corporation.

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing a corporation includes a credit to the common stock.

3 0
2 years ago
Bob is evaluating a bond issue to determine the right price for the bond. In his evaluation, he gathers the following informatio
Elanso [62]

Answer:

The price of the bond is $1000. Thus, option a is the correct answer.

Explanation:

The price of a bond is calculated using the present value of the interest payments made by the bond, which is in the form of an annuity, plus the present value of the face value of the bond. The present value is calculated by discounting the annuity of interest and the face value by the YTM or yield to maturity. In case YTM is not provided, we assume that it is same as or equal to the coupon rate paid by the bond.

The formula for the price of the bond is attached.

Bond Price = 25 * [(1 - (1+0.025)^-8) / 0.025]  +  1000 / (1+0.025)^8

Bond Price = $1000

5 0
3 years ago
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