Answer: Automatic stabilizers
Explanation:
The automatic stabilizers are one of the type of fiscal policy that which are design for the economical fluctuation. It is mainly authorized by the government and also by the policy makers.
The automatic stabilizer is also known as the economical policy and the activity is done without any government intervention. In this system, the income and taxes are get decreased or increased in the business cycle.
Therefore, Automatic stabilizers is the correct answer.
Answer: ke = D1/Po + g
0.1025 = D1/57.50 + 0.06
0.1025-0.06 = D1/57.50
0.0425 = D1/57.50
D1 = 0.0425 x 57.50
D1 = $2.444
Explanation: Cost of equity is equal to dividend in 1 year's time divided by the current market price plus the growth rate. Other variables were provided in the question except the dividend at the end of the year (D1).
Thus, D1 becomes the subject of the formula. The appropriate cost of equity is $2.44. The correct answer is B.
Answer:
1. "I have to remember to raise my chin slightly upward when I swallow."
Answer:
$50 billion
Explanation:
To find the change in aggregate expenditures, we need to find the change in consumption. For this, we will use the marginal propensity to consume formula:
MPC = ΔC/ΔY
Where:
MPC = Marginal propensity to consume
ΔC = Change in consumption
ΔY = Change in output (GDP)
We know that out MPC is 0.5, and our ΔY is $billion. We plug these amounts into the formula:
0.5 = ΔC / 100 billion
And we rearrange the equation to solve for ΔC
ΔC = $ 100 billion x 0.5
ΔC = $50 billion
So the change in consumption is $50 billion, which is also the change in aggregate expenditure.
