A stock-market boom stimulates consumer spending by $550, and there is a small operative crowding-out effect.
Option A
<u>Explanation:
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Increasing consumption, i.e. further consumer spending, will result in increased overall demand for goods and services. Therefore, if spending decreases, i.e. if interest rates decline, demand will increase with development in technologies and increase output. And demand is going to rise.
The rate of interest is falling, resulting in a higher real balance for the economy. This boosts aggregate demand, which improves revenue and spending efficiency. Often, the demand curve will change left if the money supply declines.
Effect of increasing public spending, Increased government budgets are likely to increase total demand (AD).
Answer and Explanation:
The rightward shfit in the curve is based on the assumption that the pay raise will be incorporated into the price of the ticket. As the price of the ticket increases, the demand will decrease and shift the demand curve to the right.
Answer:
This securities investment classifies as unrealized gains, as it has to be reported in the balance sheet under shareholder equity in the Accumulated Other Comprehensive Income account.
Explanation:
Unrealized gains (or losses) only exit on paper, since the company cannot recognize the gains until it sells the securities. It is an estimate of the profits that the company can make when it sells the securities, but until it does, they cannot be included in the income statement.
Answer:
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