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DanielleElmas [232]
3 years ago
14

The economy is growing far too quickly, as high aggregate demand is causing inflation. a. What fiscal policy should be pursued i

n this instance? fiscal policy. b. What will be the effect of the appropriate policy on aggregate demand? Aggregate demand will shift to the _____ .
Business
1 answer:
nika2105 [10]3 years ago
6 0

Answer:

(a) Contractionary fiscal policy

(b) Aggregate shifts leftwards

Explanation:

Fiscal policy is a tool that is used by the government of a nation to control the fluctuations in the aggregate demand.

In this type of situation, government prefer to implement contractionary fiscal policy in the following form:

(1) Decreases government spending

(2) Increases taxes

When government increases taxes then as a result there is a fall in the consumer's disposable income. Therefore, the demand for the goods and services decreases in this economy and shifts the aggregate demand curve leftwards.

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ExtremeBDS [4]

Answer:

A) Profitability index.

Explanation:

Based on the scenario being it can be said that the most appropriate tool to use in this specific situation would be a Profitability index. This is a ratio that weighs the payoff to the investment of a specific project. It is allows individuals to rank projects on the amount of value that they will be getting from them. Thus allowing you to choose the most optimal projects in situations such as this one.

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3 years ago
The three legal forms of business ownership are _____.
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3 years ago
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A bakery invest a portion of profits into sending its employees to a training on how to use more energy-efficient ovens that als
Karo-lina-s [1.5K]
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The answer would be letter A.
6 0
3 years ago
A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000
max2010maxim [7]

Answer:

Explanation:

a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=150,000/1.12+210,000/1.12^2+360,000/1.12^3

=557580.18

NPV=Present value of inflows-Present value of outflows                  

=557580.18-460,000

=$97580.18(Approx)=Value of factory

b.Hence since net present value is positive;factory is a good investment

(Yes)

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3 years ago
The following items are reported on a company's balance sheet: Cash $225,000 Marketable securities 115,000 Accounts receivable (
Mrac [35]

Answer:

i don't know

Explanation:

5 0
2 years ago
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