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Scrat [10]
3 years ago
8

Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough to shift aggregate demand fr

om AD1 to _____. rev: 06_20_2018 Multiple Choice AD2 and then to AD3 AD4 and then to AD3 AD3 and then to AD4 AD3 and then to AD2

Business
1 answer:
maw [93]3 years ago
3 0

Answer:

AD2 and then to AD3

Explanation:

If the investment is continued to increase by federal reserve it would only be feasible when money creation decreases the interest rate.

The aggregate demand would then be expanded and the aggregate demand curve shifted to the right. The necessary increase in aggregate demand must be such that aggregate shifts in demand curve from AD1 to AD2 to AD3.

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Max's demand for hot dogs falls as his income rises, then for Max hot dogs are a. a bad good. b. a normal good. c. a neutral goo
kotykmax [81]

         The reduction in Max's demand for hot dogs as his income rises shows that Max's hot dogs are an inferior good.

<h3>What is an inferior good?</h3>

An inferior good is a concept used in economics to describe a product whose demand falls as people's earnings increase. As salaries and the economy improve, people begin to replace these things with more expensive alternatives.

  • The demand for an inferior good usually falls as consumer income grows, as opposed to normal goods, which experience the reverse. 

Therefore, we can conclude that the reduction in Max's demand for hot dogs as his income rises shows that Max's hot dogs are an inferior good.


Learn more about inferior goods here:
brainly.com/question/6039968

5 0
2 years ago
Abe owns a dog; the dog's barking annoys Abe's neighbor, Jenny. Suppose that the benefit of owning the dog is worth $200 to Abe
umka2103 [35]

Answer:

Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm

Explanation:

The answer is already stated within the question, but I'll provide  the explanation.

In order to reach a solution, Jenny would have to offer Abe an amount to get rid of the dog that is more than Abe's benefit of owning the dog, which is $200.

On the other hand, since Jenny bears a cost of $400 from the bark, she would only be willing to spend as much as $400 to resolve the situation. Therefore, the acceptable range for the amount of the agreement for both parts is:

$200 < X < $400.

Since $300 is within that range. Jenny paying Abe $300 to give the dog to his parents is a possible solution.

6 0
3 years ago
Read 2 more answers
If a person invests in the stock market through a firm that pools funds from a large number of people and buys and professionall
alisha [4.7K]

Answer:

C. mutual fund.

Explanation:

Mutual fund refers to a company that pools money from many investors into securities such as stocks and bonds. Mutual funds provide the service of a deversified portfolio for customers who would otherwise been unable to diversify their portfolio themselves.

6 0
3 years ago
Your friend, Alicia, is a graduating senior about to head to college in the fall. Alicia has a single checking account and is ea
kvv77 [185]

Answer:

It is good

Explanation:

Alicia would have an easier time splitting money and saving money towards different goals. Such as putting 40% of your paycheck into savings and splitting the 40% into 10% for each savings account.

6 0
2 years ago
You were asked to estimate the cost of capital for XYZ Inc. The firm is expected to have a target capital structure of 30% debt,
kap26 [50]

Answer:

8.30%

Explanation:

The weighted average cost of capital of the company is  computed using the WACC formula below:

WACC=(We*Ke)+(Wp*Kp)+(Wd*kd)

We=weight of common equity=50%

Ke=cost of retained earnings which is a proxy for the cost of equity=11.50%

Wp=weight of preferred stock=20%

Kp=cost of preferred stock=6.00%

Wd=weight of debt=30%

Kd=after-tax cost of debt=4.50%

WACC=(50%*11.50%)+(20%*6.00%)+(30%*4.50%)

WACC=8.30%

3 0
3 years ago
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