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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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On June 1, 2018, Jensen Company acquired an 6.2%, ten-month note receivable from a customer in settlement of an existing account
Amiraneli [1.4K]

Answer:

d. Debit to Interest Receivable of $6,510.

Explanation:

To interest receivable = $180,000 * 6.2% = $11,160

Interest receivable for 7 months (June 1 - December 31) = $11,160 * (7/12) = $6,510

Therefore, the proper adjusting entry at December 31, 2018, with regard to this note receivable includes a <u>debit to Interest Receivable of $6,510</u>.

7 0
3 years ago
Saint Nick Enterprises has 17,500 shares of common stock outstanding at a price of $69 per share. The company has two bond issue
mihalych1998 [28]

Answer:

total weight of debt = 0.343 or 34.3%

Explanation:

stock's market value = 17,500 x $69 = $1,207,500

bond₁'s market value = $250,000 x 101.5% = $256,750

bond₂'s market value = $350,000 x 106.5% = $372,750

total market value of the firm = $1,837,000

weighted capital structure:

                                       market value            weight

stocks                             $1,207,500               0.657

bond₁                              $256,750                  0.140

bond₂                              $372,750                  0.203

total                                $1,837,000                 1

total weight of debt = 0.343 or 34.3%

8 0
3 years ago
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alina1380 [7]

Answer:

B. International trade enables specialization, which brings increased efficiency and greater competition.

Explanation:

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Answer:

3. Correctly ignored a sunk cost

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Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.

Sunk costs are irrelevant for decision making process as they do not relate to current projects and yield no economic benefit.

In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund.  Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.

8 0
3 years ago
Susan, a district manager for a large retail chain, is comparing the goals of her stores with recent sales. She knows that two s
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Answer: True, this process is the controlling of managerial function

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8 0
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