If a fiscal policy change is going to exert a stabilizing impact on the economy, policy must add stimulus to demand during a slowdown but it should restraint the demand during an economic boom.
Fiscal policy is the policy in which the government spending and taxation is used to influence the economy.
Governments generally use fiscal policy to promote strong as well as sustainable growth in the economy and reduce the poverty too.
The role and objectives of fiscal policy which gained importance during the recent global economic crisis is when the different governments stepped in to support financial systems.
Governments starts the growth, and also mitigate the impact of the crisis on vulnerable groups through the use of fiscal policy.
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Answer:
Willingness to pay
Revenue
Two
Elastic
Inelastic
Explanation:
Price discrimination is when a producer or a seller charges different prices for the same product usually in different markets.
In price discrimination, a seller attempts to remove or reduce consumer surplus by charging the consumer at his willingness to pay. For price discrimination to be effective, a seller must be able to estimate the willingness to pay of consumers.
Price discrimination is successful when a seller earns higher profits when she discriminates compared to when she didn't price discriminate.
Price discrimination exists in the airline industry. One of the ways price discrimination exists in the airline industry is through charging to check bags. Customers ( people who board airplanes) are distributed into two groups- those who won't pay to check bags and those who would pay to check bags.
It is assumed that those who would pay to check their bags have a price inelastic demand because they are indifferent to paying an extra amount for their luggage.
Inelastic demand is defined as when a small change in price has no effect on quantity demanded.
While it is assumed that those who won't pay to check their bags have an elastic demand because they are unwilling to pay extra to check their luggages.
Elastic demand is when a change in price has effect on quantity demanded.
Answer:
the times was interest earned in Year 3 is 11.2 times
Explanation:
The computation of the times interest earned ratio is given below:
The times interest earned ratio is
= (Net income+ Income tax expense+ Interest expense) ÷ Interest expense
= ($25,500 + $25,500 + $5,000) ÷ $5,000
= 11.2 times
Hence, the times was interest earned in Year 3 is 11.2 times
The same is to be relevant
The answer is option "<span>d. 125; 75".
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Free market alludes to an economy where the legislature or government forces few or no confinements and directions on purchasers and sellers. In a free market, members figure out what items are created, how, when and where they are made, to whom they are offered, and at what value—all in light of free market activity.
