Answer:
Nathan's contention is wrong.
Explanation:
Storage of money at home involves the opportunity cost of losing out on income that would've been generated had the same money been invested elsewhere or deposited with a bank.
Secondly, money stored at home is vulnerable to theft and other forms of risks.
Thirdly, stored money at home does not contribute to any economic benefit since such money is out of circular flow of money in the economy. So it yields no return.
Thus, Nathan's contention of stored money at home being costless is wrong.
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Answer:
Suppose the economy is experiencing an output gap of –3%
a. Monetary policy or fiscal policy can be used to raise actual output toward potential output when:
The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP.
The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP.
b. The policies identified in part a,
can be used together to raise actual output toward potential output.
Explanation:
Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S). This equilibrium can be achieved at a level of interest rate that maximizes output. The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.
The correct answer to this open question is the following.
The Agile Manifesto principle that I am going to pick in the principle of "Embracing Change."
I think this is likely to have the biggest impact on the success or failure of a typical project in my organization because change is the constant in modern-day business. Probably, since the inception of the modern-day industry.
In order to be successful and maintain that success over the years -no matter the conditions- a company has to be ready not only to adapt to change but to change ahead of necessity. And this is one of the most difficult things to do in business because people love to be in a comfort zone for years. People in corporate America likes to know they are safe in their traditional places doing traditional things. For them, change is tough.
That is why I think "Embrace change" would be the principle that would help me the most.
