Answer: a decrease in government expenditure and an increase in taxes by a decision of Congress; a decrease in transfer payments and an increase in taxes with no interference by Congress (D)
Explanation:
Discretionary fiscal policy is a government policy that changes government spending or taxes. The purpose of discretionary fiscal policy is to either expand or shrink the economy. It needs approval from the Congress and President. Its examples are increases in spending on bridges, roads, stadiums etc.
Automatic fiscal policy use spending in the form of taxes and transfer payments to automatically steady the economy. An example is when unemployed become eligible for the unemployment benefits after when losing their jobs during a recession.
Answer: decrease
Explanation:
The money multiplier is the amount of money generated by banks with each dollar of reserves. The reserves is the amount of deposits which the Federal Reserve wants banks not to lend but rather hold. The money multiplier is therefore the ratio of deposits to the reserves in the banking system.
The money multiplier shows the ratio of the increase or decrease in money supply in relation to the increase or decrease in deposits. During the Christmas period, people draw lots of money out of their accounts to buy presents and other things. This will lead to a decrease in the money multiplier.
Answer:
None of these choices are correct.
Explanation:
The required rate of return is the minimum return an investor expects to achieve by investing in a project, or in other words,
The required rate of return on a bond is the return that a bond issuer must offer in order to entice investors to purchase the asset.
They are predominantly set by market forces and determined by the price at which issuers and investors agree.
Answer:
b. assure current users they made the correct choice in choosing the product.
Explanation:
- The advertising that assured the purchasing party to be reassured and tells them they have done have the right thing by buying the brand or product and also explains how to get the best results from that product along with the most satisfaction. Its purpose is to maintain a market share.
- An example of this could be the automobile industry that provides the information regarding the warranty, and uniqueness and brand value. <u>Just to have a positive reinforcement and develop a conditioning towards that product or brand.</u>
Answer:
C
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
If the PPF is a straight line, it means there is a constant opportunity cost no matter the point one is on the curve
