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vivado [14]
3 years ago
8

Which of the following are arguments in favor of active stabilization policy by the government? check all that apply. changes in

government purchases and taxation must be passed by both houses of congress and signed by the president. shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses. the fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates. the current tax system acts as an automatic stabilizer?
Business
2 answers:
Fantom [35]3 years ago
7 0

Answer:

  • shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
  • the Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.

Explanation:

Economic pessimism or optimism basically represent the general feeling that businesses and citizens of a country have about where the economy is heading. If the general feeling is that the economy is strong, there is said to be a general feeling of economic optimism. If the people and businesses believe that the economy will enter a recessive period, then there is a general feeling of economic pessimism.

The problem with economic moods is that they tend to be self fulfilling prophecies. If most people and businesses have a pessimistic view of the economy, they will start to prepare for a recession and the first thing they do is cut spending and increase savings. Since the largest component of the GDP is consumption, if spending decreases, then the GDP will decrease. By increasing the money supply and lowering interest rates the FED will try to increase consumption.

balandron [24]3 years ago
4 0
Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses is an <span>argument in favor of active stabilization policy by the government. The active stabilization policy measured to help introduce a way to stabilize an economy. There are many ways to achieve this but two distinct ways to follow.


</span>
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GREYUIT [131]

Answer:

Delwazic Inc. is a multinational corporation (MNC) that creates products specialized for a few host countries. It manufactures berets in France, cowboy hats in the United States, bowlers in the United Kingdom, and bush hats in Australia. In this scenario, Delwazic Inc. is most likely a monopolist

Explanation:

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The equilibrium price and quantity of a good are found where the supply and demand curves intersect.
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3 years ago
Moe ’s Electric sales vacuum cleaners with a one-year warranty to fix any defects. For the current year, 200 vacuums have been s
vekshin1

Answer:

$900

Explanation:

Given that

Total repair up to end of year = 12

Estimated need to be repaid = 8

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The computation of warranty expense for the current year is shown below:-

For computing the warranty expense for the current year first we need to find out the total repaired cost which is here below

Total repaired cost = Total repair up to end of year + Estimated need to be repaid

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= $45 × 20

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3 years ago
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8 0
2 years ago
First National Bank charges 13.6 percent compounded monthly on its business loans. First United Bank charges 13.9 percent compou
melomori [17]

Answer:

First National EAR 14.48%

First United EAR 14.38%

Explanation:

Calculation to determine Calculate the EAR for First National Bank and First United Bank.

Using this formula

EAR = [1 + (APR / m)]m − 1

Let plug in the formula

First National EAR = [1 + (.136 / 12)]12 − 1

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Therefore the EAR for First National Bank and First United Bank will be :

First National EAR 14.48%

First United EAR 14.38%

8 0
3 years ago
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