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
Nezavi [6.7K]
3 years ago
7

When the economy is in a recession, expansionary fiscal policy can be used to stimulate and encourage economic growth. Which of

the following scenarios represent expansionary fiscal policies from both a supply and demand perspective at the same time? There could be more than one answer! Please be 100% sure:)A. The government lowers tax rates and undertakes a replacement of old bridges and roadsB. The government lowers tax rates and issues a partial refund of taxes that have alredy been paidC. The government raises tax rates and reduces unemployment insurance paymentD. The Federal Reserve incrases the money supply and lowers the interest rate while the government simultaneously reduces future taxes.
Business
1 answer:
kicyunya [14]3 years ago
7 0

Answer:

A. The government lowers tax rates and undertakes a replacement of old bridges and roads

B. The government lowers tax rates and issues a partial refund of taxes that have already been paid

These 2 statements are correct explained below

Explanation:

A. The government lowers tax rates and undertakes a replacement of old bridges and roads, this statement is correct because when the government lowers tax rates it means that people have higher disposable income on their hands therefore they can spend more which increases demand, and people also invest more which increases supply, also the replacement of bridges and roads is improvement in infrastructure and this also increases supply as transportation is easier and cheaper for businesses.

B. The government lowers tax rates and issues a partial refund of taxes that have already been paid, this statement is correct because when the government lowers tax rates it means that people have higher disposable income on their hands therefore they can spend more which increases demand, and people also invest more which increases supply, also refund of taxes will increase the disposable money that people have so they can invest and consume both which will increase both supply and demand.

C. The government raises tax rates and reduces unemployment insurance payment

This is contraction fiscal policy and will do the opposite of expansionary fiscal policy, that is why this statement is incorrect.

D. The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes. This statement is wrong because lowering the interest rate is an expansionary monetary policy and not an expansionary fiscal policy.

You might be interested in
Write age and snap if your a girl if your a boy do the same and we can be friends if you want to
Masja [62]

14

Explanation: dont have friends

3 0
2 years ago
In economics there are positive statements and normative statements. The following is an example of a normative statement: "Stud
NeX [460]

Answer:

The question?

Explanation:

6 0
3 years ago
What isthis one pls help
Nataliya [291]
Small number is three and large number is four
3 0
2 years ago
Read 2 more answers
What is an example of a general safety hazard?
Ket [755]

Answer:

poorly maintained equipment

5 0
2 years ago
Read 2 more answers
Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh d
Gnoma [55]

Answer:

The optimal order quantity is 316 pounds

Explanation:

In order to calculate What daily order quantity is optimal, we have to calculate first The cost of underestimating the demand Cu and cost of overestimating demand Co

Cu = ($0.60 - $0.50)*4 = $0.40

Co = $1 - $0.80 = $0.20

Next we have to calculate the Service Level = Cu / (Cu + Co)

= 0.40 / (0.40 + 0.20)

= 0.40/0.60

= 0.6667

So, Z Value at above service level = 0.430727

Therefore, in order to calculate the Optimal Order quantity, we would have to use the following formula

Optimal Order quantity= Mean + Z Value × Std Deviation

= 301 + 37 * 0.430727

= 301 + 15.36899

= 316 pounds

7 0
2 years ago
Other questions:
  • Which one of the following is not covered by renter's insurance? additional living expenses accidental damage to the property of
    8·1 answer
  • Aggregate demand is the of all goods and services (Real GDP) at different price levels, ceteris paribus. If a person has $100,00
    15·1 answer
  • Suppose a firm pollutes a river with harmful chemicals when it produces a product. To achieve the efficient amount of output, th
    15·2 answers
  • Read the overview below and complete the activities that follow. In addition to trade accounts payable, many companies have othe
    10·1 answer
  • Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as​ follows:Direct materi
    5·1 answer
  • A company is 49% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of th
    15·1 answer
  • Which of the following statements is LEAST accurate?
    12·1 answer
  • A mayor announces plans to reduce the salaries of Firefighters by ten percent, but the union that represents the
    12·1 answer
  • the houston metro area represents which problem that exists in creating functional mass transit systems in texas?
    11·1 answer
  • XYZ Co. manufactures bicycles. Demand for this year’s model is expected to occur at a constant annual rate of 9200 items. One bi
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!