I think the answer is c for this question tbh well yah
Answer:
The correct answer is A. increase tax rates and/or reduce government spending.
Explanation:
Increasing the tax burden is an easy way for the state to increase its income temporarily and subject matter, but it turns out that increasing the tax burden affects productivity and consumption, so in the end the income of the productive sector is diminished, and more taxes on a lower taxable base does not imply increasing revenues.
When a government decides to reduce public spending for a fiscal balance, it is limited to reducing the social assistance and social security, but not to reduce the bureaucratic apparatus that curiously is usually high in countries with economic crisis, and also Be a source of corruption corruption.
Answer:
The answer is 'Buy a Stock Index Future'
Explanation:
To take best advantage of this situation, Mr Smith should go long(buy) on this stock.
Stock Index Future js a method of derivates. Futures, like forward contract is a forward commitment which obligates the buyer to purchase an asset or the seller to sell an asset and have a predetermined future date and price. Future is used to hedge against worse future situations.
