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Vladimir79 [104]
3 years ago
15

The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some

disagreement to whether the government should attempt to stabilize the economy.Which of the following are arguments in favor of active stabilization policy by the government?a. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.b. Businesses make investment plans many months in advance.c. Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president.d. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
Business
1 answer:
grandymaker [24]3 years ago
3 0

Answer: a. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.

d. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses

Explanation:

Stabilization policy is a policy that is used by the government to maintain a healthy economic growth level in the country and also prevent the economy from slowing down.

In the above scenario, the arguments in favor of active stabilization policy by the government will be that the The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates and that shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.

It should be noted that pessimism on the economy will bring about economic downturns in the economy which will have a negative effect on the aggregate demand. These economic downturns aren't beneficial to the economy.

Also, optimism among consumers and businesses can lead to economic instability. This will therefore bring about calling for a stabilization policy that will tackle this.

Therefore, option A and D are the correct answers.

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According to the product life-cycle theory, the locus of global production initially switches from the United States to other ad
guapka [62]

Answer:

The correct answer is letter "C": Over time, the United States switches from being an exporter of a product to an importer of the product.

Explanation:

The life-cycle theory proposes that the United States boosted worldwide economic trade exporting their products. At first, the products were delivered to other world developed countries. Over time, those developed countries started to study American products to become manufacturers. This implies competition so to spend fewer costs, the developed countries took their operations to developing nations.

After some time, it is believed that those developing countries are likely to become manufacturers as well at even cheaper costs provoking that the United States begin to import products from the developing nations.

8 0
3 years ago
Planes frequently push back from the gate on time but then wait 2 feet from the gate until it is time to queue up for takeoff. T
ira [324]

Answer:

b. A performance metric that measures timeliness of the flight, where a flight is considered "on time" as long as the flight is boarded and away from the gate by the scheduled departure time

Explanation:

We are told that airplanes make a mock depart by exiting the boarding gates, but they stay on the runway for long periods of time. This is due to the fact that airlines measure which planes are on time based on the moment that they left the boarding gate, not when they actually lift into the air. it happened to me once and it was extremely unpleasant to just sit without moving for more than one hour. I doubt any passenger likes these type of situations.

4 0
2 years ago
The objective of _____ is to build sales, market share, and profits quickly by providing an incentive to purchase the product im
3241004551 [841]

Answer: Market Penetration Pricing.

Explanation:

MPP, Market Penetration Pricing is a where a company uses a strategy to attract customers to their product. Which also means lowing the price for customers to buy their products.

When lowing a price: This strategy is used to attract customers, they buy their product - then if they like it they will keep buying it even if the price is raised. This is a common strategy for tons of company brands.

6 0
3 years ago
Brad owns a small townhouse complex that generates a loss during the year.
My name is Ann [436]

Answer:

a. Brad might be allowed to deduct up to $25,000

or Brad may be allowed to deduct the loss if he works more than 750 hours as a material participant in connection with the townhouse complex and more than half of personal service.

b. The reduction is equal to 50% of AGI in excess of $100,000. The deduction will be phased out completely if AGI reaches $25,000

Explanation:

Adjusted Gross Income is the final taxable income after all the allowable deductions are adjusted in the income. A tax payer can deduct up to $25,000 for the passive losses. This is standard deduction which Brad can deduct from the income.

7 0
3 years ago
The three primary policy tools available to those officials in charge of our country's monetary policy are a reserve requirement
Olenka [21]

Answer:

a. reserve requirements, the discount rate, and open-market operations.

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.

Additionally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).

The three (3) primary policy tools available to the governmental officials in charge of our country's monetary policy are reserve requirements, the discount rate, and open-market operations.

3 0
2 years ago
Read 2 more answers
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