The answer is A. Taxes are lower
Suppose the economy is initially in long-run equilibrium. the fed enacts a policy to the Fed.
The structure or conditions of economic life in a country, region, or era: the economic system. 2a: Economical and Efficient Use of Material Resources: Thrifty Spending: Example or Means of Savings: Savings.
The economy is defined as the management of financial affairs in a community, business, or family. An example in economics is the US stock market system. Careful use of assets, resources, etc. Reduce waste through careful planning and use. economical or frugal use.
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Answer:
Planning and Controlling
Explanation:
This is because Planning involves the maintenance and organizational approach of achieving strategic objectives while controlling is the aspect of project which involves systematic effort by business management to compare performance to predetermined standards, plans, or objectives in order to determine whether performance is in line with these standards.
Answer:
a)
P 175
Q = 250
Profit6,250
b)
P 325
Q = 875
Profit 153,125
c)
Q = 1200
P = 260
Profit = 287,000
Explanation:
It maximize profit at MR = MC
MR = 200 - 0.2Q
MC = 150
150 = 200-0.2Q
Q = 50/0.2 = Q = 250
Price:
250 = 2000 - 10P
P = 1750/10 = 175
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<u>Profit: revenue - cost</u>
$175 x 250 session - $150 per session = 6,250
<em>At new functions:</em>
150 = 500-0.4Q
Q = 350 / 0.4 = 875
Price:
875 = 2,500 - 5P
P = (2500-875)/5= 325
<u>Profit</u>
(325 - 150) * 875 = 153,125
<u>If cost changes:</u>
cost: 1000 + 20Q
marginal cost: 20
20 = 500 - 0.4Q
Q = 480 / 0.4 = 1,200
Price:
1,200 = 2500 - 5P
P = 1300/5 = 260
<u>Profit</u>
(260 - 20)Q - 1,000 = 287,000
Answer: a decrease in interest rate and investment will increase.
Explanation:
If government replaces the income tax with a consumption tax and the interest on savings was not taxed, this would lead to a reduction in interest rate and investments will also increase.
Since the interest on savings are not taxed, there'll be a decrease in interest rate and this will lead to investors investing more in the economy as investors can go to banks to borrow money at a lower interest rate which can be used for investment purposes.