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enot [183]
3 years ago
9

Which of the following is most representative of the functional finance view of the macroeconomy? The economy is self-regulating

and the best thing the government can do to enhance stability is to stay out of the way. Budgets should be balanced. Doing otherwise is morally wrong. The government should decide on tax and spending plans based on their effects on the economy. Crowding out almost completely cancels out any deficit spending, so fiscal policy is likely to be ineffective.
Business
1 answer:
bazaltina [42]3 years ago
5 0

Answer:

The government should decide on tax and spending plans based on their effects on the economy.

Explanation:

According to the functional finance theory, the government is the authority which should finance itself to come along to meet with the explicit goals of the economy of the country. The theory has been proposed by Abba P. Lerner. Some of the goals of the economy include attainment of full employment, decreasing the rate of inflation and ensuring growth.

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Midwest Corporation has provided the following data concerning manufacturing overhead for 2020:
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Answer:

Estimated manufacturing overhead rate= $18 per direct labor hour

Explanation:

Giving the following information:

Estimated manufacturing overhead for the year $ 37,080

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To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 37,080/2,060

Estimated manufacturing overhead rate= $18 per direct labor hour

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