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andreev551 [17]
3 years ago
10

The Ricardian equivalence theorem states that

Business
1 answer:
motikmotik3 years ago
5 0

Answer: The Ricardian equivalence theorem states that : <u>"A. an increase in the government budget deficit has no effect on aggregate demand."</u>

Explanation: Ricardian Equivalence establishes that when the government increases the expenses financed with debt to try to stimulate the demand, this increase of the expenses does not produce any change in the demand.

This happens because the increases in the public deficit will be higher taxes in the future. Therefore, taxpayers reduce their consumption and increase their savings in order to offset the cost that will be the future tax increase.

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Whats the meaning of oligopoly and monopoly market structure​
leonid [27]
Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. A monopoly is one firm, a duopoly is two firms and an oligopoly is two or more firms.
6 0
2 years ago
Read 2 more answers
course blueWells Fargo, one of the largest banks in the United States, uses a robust CRM system to manage its 70 million individ
Misha Larkins [42]

Answer:

See answer and explanation below.

Explanation:

Generally, customer relationship management (CRM) is a technology that companies employ to manage their relationships and interactions with the existing customers and potential ones.

Other information Wells Fargo’s CRM system can tell the company include:

1. It provides information that can support it marketing strategy and sales.

2. It shows the most profitable customer of the bank and suggests technique to employ in order to improve product offering to these set of customers.

3. It identifies and provides information on different customer segment and improve the customer experience.

4 0
3 years ago
Charles owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a
timofeeve [1]

Answer:

Cost of each bottle of water is $7.

Explanation:

This is the case for economies of scale. When Charles produce 1 bottle of water, it costs him $1 per bottle, when 8 bottles are produced it costs him  $7. The cost per bottle of water reduces as units increases.

3 0
2 years ago
Recent rains increase the demand for kayaks, as paddlers want to take advantage of the exciting river conditions on the Oconee R
Lunna [17]

Answer:

Equilibrium price to be indeterminate from the information given, but equilibrium quantity to rise.

Explanation:

The recent rains resulted in an increase in demand for kayaks so the equillibrum quantity demanded will rise. Supply will also rise to meet the increased demand.

However we are unable to determine if the price will rise or fall with the given information.

Plastic is cheaper now so kayaks will also be cheaper. On the other hand increase in demand naturally causes an increase in price. So the cheaper price of kayaks will need to be compared with price increases as a result of increased demand to determine if equillibrum price will rise or fall.

5 0
3 years ago
Why does an oligopoly only work if there are high barriers to entry in a market?
erastovalidia [21]
An oligopoly is the limitation of competition. If you can keep competitors out of the marketplace, you have more of a chance to make a profit. If you are in a business with a very high capital outlay or you have an extremely well trained labor force that your competitors can't match then you have effectively created or have created for you a very high barrier. Hence an oligopoly.
4 0
3 years ago
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