1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elodia [21]
3 years ago
15

Explain the ways in which Fiscal Policy and Monetary Policy interact by using Keynesian IS and LM curves. Discuss the impact of

an expansionary Fiscal Policy and Monetary Policy on the overall level of economic activity. Include the conditions in which Monetary Policy would have a greater influence on GDP growth and the conditions in which Fiscal Policy would have a greater influence on GDP growth.
Business
1 answer:
statuscvo [17]3 years ago
6 0

Answer and Explanation:

If demand is greater than supply, then there is inflation. Hence, the government has to devaluate its currency on net borrowings from abroad. Supply increases and price becomes stable.

The banks have to lower their bank rate and decrease CRR. When prices rise, consumption decreases and investment increases. When the interest rate is made high consumption and investment both become stable. Hence, there is full employment. Government has a fiscal policy to increase taxes and borrowings and increase the export and income rises and price becomes stable.

You might be interested in
What is the effect on market when suppliers under invest in their businesses​
yanalaym [24]

Answer:

  • Low supply
  • Scarcity
  • Low economic growth

Explanation:

When suppliers under invest in their business, they will end up having the capacity to only produce less than the market requires. Should this happen, supply will be reduced in the market which would lead to relative scarcity all else being equal.

For economic growth to happen, there must be increasing production in an economy so if suppliers are under investing and production is low, there might be low or no economic growth.

8 0
2 years ago
The causes of frictional unemployment include:
RideAnS [48]

Answer:

The answer to your question is B - Changes of economic structure.

5 0
3 years ago
The Pioneer Company has provided the following account balances: Cash $38,600; Short-term investments $4,600; Accounts receivabl
Artyom0805 [142]

Answer:

Total Current Assets      $ 100,800

Explanation:

The current asset are those assets which are cash cash or the firm expect to convert in cash within a 12 month period (one-year)

Assets with a useful life or collection date longer than a year will be considered non-current thus, non included in current asset

Cash                                $  38,600

Short-term investments $     4,600

Accounts receivable      $    51,000

Supplies                        <u>  $     6,600  </u>

Total Current Assets      $ 100,800

4 0
3 years ago
Stock in CDB Industries has a beta of 1.10. The market risk premium is 7 percent, and T-bills are currently yielding 4 percent.
12345 [234]

Answer:

Cost of equity = 11.7%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.</em>

Under CAPM, Ke= Rf + β(Rm-Rf)  

Rf-risk-free rate,-4%,  β= Beta-1.10, (Rm-Rf) = 7% ,Ke = cost of equity

Using this model,  

Ke=4% + 1.10×7%

= 11.7 %

Cost of equity = 11.7%

3 0
2 years ago
B. An electronic store
lukranit [14]

In electronics Store there is an electronics items such as wire,etc

5 0
2 years ago
Other questions:
  • In the context of populations in the united states, millennials:
    9·2 answers
  • 60 tens is the same as
    10·1 answer
  • What is a beneficiary?
    6·2 answers
  • BC Corporation has 2.8 million shares of stock outstanding. The stock currently sells for $50 per share. The firm’s debt is publ
    11·1 answer
  • Ranger Inc. would like to issue new 20-year bonds. Initially, the plan was to make the bonds non-callable. If the bonds were mad
    14·1 answer
  • Ivanhoe Inc., in its first year of operations, has the following differences between the book basis and tax basis of its assets
    11·1 answer
  • True or False: If Kevin's Fire Engines were a competitive firm instead and $160,000 were the market price for an engine, decreas
    13·1 answer
  • How does inflation hurt your savings?
    9·1 answer
  • How to be a successful entrepreneur?
    5·2 answers
  • Draft an email to be sent to all of your colleagues announcing the transition to a formal on-boarding process for all new employ
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!