Answer:
B) increases in spending to fight a recessionary gap may occur too late.
Explanation:
Time lags refers to the time that passes between making a decision and implementing the decision. For example, the FED announces its intention to increase or decrease their interest rate with a lot of anticipation, and sometimes it would be better if they just did it.
Politicians are famous for talking a lot and doing very little, and that happens in every country in the world. During recessions words aren't needed, actions are needed. The problem is that many times words are abundant and actions are scarce. A small problem that is not dealt swiftly and properly can become a huge problem.
Each items as a component of Gross Domestic Product (GDP) are:
Consumption:
Investment:
- A domestically manufactured business computer
Government purchases
- A public school teacher's salary
Net export:
<h3>What is Gross Domestic Product (GDP)?</h3>
Gross Domestic Product (GDP) can be defined as the overall value of goods and service that are produced and sold in the market during a particular period of time.
Based on the information given each items as a component of Gross Domestic Product (GDP) are:
Consumption:
- Ice Cream
- 55 cent tacos
- A domestically manufactured personal computer
- Cab fare for personal use
- A ticket to a local sporting event
Investment:
- A domestically manufactured business computer
Government purchases:
- A public school teacher's salary
Net export:
Inconclusion each items as a component of Gross Domestic Product (GDP) are:
Consumption:
Learn more about Gross Domestic Product (GDP) here:brainly.com/question/1383956
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Answer: Default risk premium
Explanation:
The default risk premium is one of the type of the additional amount or payment that is usually calculated by using the effective concept as it is difference between the risk free rate and the overall debt interest rate.
The main objective of the default risk premium is make the additional type of payment in the form of compensation to the borrower and all an organizations or companies are indirectly paying the default risk premium.
According to the given question, the Default risk premium is the term which is used to represent the additional type of compensation which is specifically provided by the bond holder.
Therefore, Default risk premium is the correct answer.
The people who would most likely to sign the engagement letter are:
a. Officer/s of the professional firm
b. Client/s
The engagement letter is an agreement between these two parties who are to engage in specific terms. Terms would most likely involve compensation packages and how the services are to be rendered.