Answer:
B) There is an inflationary gap, and contractionary fiscal policy is appropriate.
Explanation:
One of the macroeconomic cases is inflationary gap. It means that the difference between the current level of real gross domestic product (GDP) and the predicted or forecasted GDP that would be experienced and achieved if an economy is at full employment. It could be claimed that when the demand for goods and services gets over the production in the factors such as: higher levels of overall employment, increased trade activities or increased government expenditure.
In order to overcome this gap, the contractionary fiscal policy must be considered. The mechanism of that policy is to increase the taxes decrease the government expenses due to inflationary pressures. This policy consequently will affect the level of consumption and private investment, respectively, these also will decrease the real GDP.
Other concept of macroeconomics is recessionary gap. In comparison to inflationary gap, this concept indicates the economy operating at lower level than its full equilibrium level, in turn, the level of real GDP is also less than full equilibrium level. We used to see this situation when the economy was intending to recess.
In order to overcome this gap, the expansionary fiscal policy will work well. Because of decreasing taxes and increasing government expenditures, the recessionary gap can be fought anymore. Since the taxes decreases, the business will revive and the confidence to the investment will increase, as a result the GDP will rise. Moreover, the growing government expenditures will stimulate the GDP to accrue.
To summarize, according to the question we need the gap in which the economy is above of potential, this means inflationary gap. Following this finding, the contractionary fiscal policy will be solution.
Answer:
B. order priority provisions
Explanation:
When investors want to purchase municipal bonds in the primary markets, it is important for the issuer to prioritise orders from investors in a bond offering.
The underwriter must follow the issuer's priority of orders in allocating purchase orders for municipal bonds.
So in a competitive municipal syndicate when a customer asks for order priority provisions, it must be provided by the dealer.
This shows transparency of the process to the investor as he now knows when each order will be filled.
She is an example of an <u>"interactive" </u>leader.
Interactive leadership focuses on making the association's welfare the main need by developing every single representative to help its bearing and endeavors. Strong pioneers persistently stress the way that if the association wins, everybody wins. Each worker movement that helps and advances this conviction must be sustained and supported.
Answer:
The answer is: Longer lead times and they can be inventoried.
Explanation:
Physical goods or products usually have longer lead times than services (although not necessarily) but the main difference between them is that they can be inventoried.
For example, a company that produces chairs can produce chairs during the week and then store them in a warehouse. But if a hotel only rents 30 of its 50 available rooms today, it cannot rent 80 rooms tomorrow, only 50. A service by definition cannot be inventoried, or stored for later use.
Answer:
Therefore Expected Value of the information = $65,000+$62,000 - $10,000 = $117,000
Explanation:
If the market research survey is available for $10,000.
Using a decision tree analysis, it has been found that the expected monetary value with the survey is $65,000. The expected monetary value with no survey is $62,000.
<u>Then the expected value of the information from this sample is the expected value of each outcome and deducting the costs associated with the decision</u>
Therefore Expected Value of the information = $65,000+$62,000 - $10,000 = $117,000
