1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
barxatty [35]
3 years ago
8

If the investment demand curve is vertical, a decrease in the interest rate will __________ investment, and therefore aggregate

demand will __________.
Business
1 answer:
Bezzdna [24]3 years ago
7 0

Answer:

No effect, remain unchanged

Explanation:

The demand curve which is vertical, it means that the demanded quantity will remain the same, irrespective of the change in the price. In short, when price will increase, the quantity demanded will not be effected, whereas when price decrease then also the quantity demanded will not be effected or change.

So, if the demand curve of the investment is vertical, then the decrease in the rate of the interest will no effect the investment and the aggregate or total demand will also be remain unchanged as there is no effect on investment.

You might be interested in
You have two options for how to spend the afternoon. you can either go see a movie with your roommate or work as a tutor for the
erma4kov [3.2K]

Answer: Economic Surplus : $12

Explanation: Economic surplus is the difference between benefit and cost.

In this case, since he is working as a math tutor, he will get $45, there is no other cost. But if he goes for a movie, he will have to spend $12 on movie, which is the cost he needs to bear. The economic surplus is $12 which is not spent on the movie and worked as a math tutor.

5 0
3 years ago
In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cos
musickatia [10]

Answer: $2500

Explanation:

From the question,

Average variable cost(AVC) = $50

Average total cost (ATC) = $75

Output (Q) = 100

Since Average fixed cost is the difference between the average total cost and the average Variable cost. This will be:

AFC = ATC - AVC

AFC = $75 - $50

AFC = $25

We should note that:

AFC = TFC / Q

TFC = AFC × Q

TFC = $25 × 100

TFC = $2500

Therefore, total fixed cost is $2500

5 0
3 years ago
Prepare a 2019 individual tax return using the following fact pattern. Compute net tax payable or refund due for Alice and Bruce
Lana71 [14]

Answer:

Oof thats a long question.

Explanation:

4 0
2 years ago
Define the term fiscal policy.
12345 [234]

Answer:

a). Fiscal policy: fiscal policy ca be defined as the act by the government to use it's expenditure and taxation to control the economy. Government spending usually includes the purchase of goods while taxation is usually a compulsory charge by a government to finance their spending. As we can see, how much the government spends depends on the level of taxation. Fiscal policy are therefor rules and guidelines that utilize spending and taxation to manage the economy.

b). Two ways in which fiscal policy can be used by Caribbean government to increase the level of employment and output in their economies are:

1. Reduction of taxes

2. Increasing government spending

c).  The reasons why some fiscal measures may not work in the small open economies in the Caribbean are:

1. Fiscal expansion by increasing government spending leads to the crowding out effect by the private sector.

2. Fiscal expansion can lead to increased levels of disposable income, increasing the demand for goods and services. This causes an increase in price leading to inflation.

3. Fiscal contractionary policies, which are rarely used include reducing government spending and increasing taxes. This reduces the supply of money in the economy, thus causing a budget surplus. This if not controlled, causes deflation that reduces the levels of output and employment.

d). The crowding out effect is caused by increased government spending in the public sector to the point that the private sector is driven down or in some instances are totally done away with.Crowding out effect can be avoided by offering investment subsidies. Thus the private sector can grow since the cost of investment is manageable.

Explanation:

a). Fiscal policy: fiscal policy ca be defined as the act by the government to use it's expenditure and taxation to control the economy. Government spending usually includes the purchase of goods while taxation is usually a compulsory charge by a government to finance their spending. As we can see, how much the government spends depends on the level of taxation. Fiscal policy are therefor rules and guidelines that utilize spending and taxation to manage the economy.

b). Most Caribbean countries on average are middle-income economies. Their economy largely relies on tourism, agriculture, oil and natural gas produce. With the upper middle-income Caribbean countries relying heavily on oil and natural gas export.  Most of the Caribbean countries are developing countries with economic characteristics like; high levels of unemployment and low levels of output. There are two ways in which fiscal policy can be used by Caribbean government to increase the level of employment and output in their economies. They are;

1. Reduction of business taxes. A reduction in business tax encourages investment in the economy. More investment in the company means more employment opportunities in the economy. Since tax cuts, increases disposable income by a considerable amount, this means that more income is available for production of goods and services. This causes an increase in output.

2. Increasing government spending: this can be done by offering grants to local and state governments to encourage spending on finished goods and services. By doing this, more businesses produce more since the demand is high. An increased demand requires high levels of output to satisfy the demand. Simultaneously, a larger work force is needed to meet the high levels of output required thus raises the level of employment.

c). A small open economy is an economy that takes part in international trade but due to the fact that it is small, their influence causes little or no considerable effect the international prices, rates of interest or even world income. Some of the reasons why fiscal measures cannot work in a small open economy in the Caribbean are;

1. Fiscal expansion by increasing government spending leads to the crowding out effect by the private sector.

2. Fiscal expansion can lead to increased levels of disposable income, increasing the demand for goods and services. This causes an increase in price leading to inflation.

3. Fiscal contractionary policies, which are rarely used include reducing government spending and increasing taxes. This reduces the supply of money in the economy, thus causing a budget surplus. This if not controlled, causes deflation that reduces the levels of output and employment.

d). The crowding out effect is caused by increased government spending in the public sector to the point that the private sector is driven down or in some instances are totally done away with.Crowding out effect can be avoided by offering investment subsidies. Thus the private sector can grow since the cost of investment is manageable.

3 0
3 years ago
An individual employed part-time at a retail store that schedules her based on the busiest times and days throughout the year, w
kykrilka [37]

Answer: contingent

                         

Explanation: It refers to the employment in which the job of an individual is not fixed with the company. In case of contingent employment, the employees are usually hired when there is a specific project to complete that needs extra work force.

Unlike seasonal employment the these employments are non recurring and there is no time fixed for employment that an individual could expect.

Thus, from the above we can conclude that the given case is an example of contingent employment.

8 0
3 years ago
Other questions:
  • Why did the natural environment receive so much attention under new deal programs, and with what result?
    15·1 answer
  • In response to duracell's introduction of the duracell ultra battery, energizer introduced an advanced formula battery. but unli
    8·1 answer
  • The effectiveness of an advertising campaign can be measured a. only after the campaign has been carried out completely and resu
    6·1 answer
  • Poornima is a 31-year-old professional basketball player. She finished her last season as a player 3 weeks ago and is currently
    8·1 answer
  • Wims, inc., has current assets of $5,000, net fixed assets of $23,000, current liabilities of $3,500, and long-term debt of $7,9
    10·1 answer
  • A bottling operation has a mean fill level of 10.01 ounces with a standard deviation of 0.25 ounces. Random samples of 20 bottle
    9·1 answer
  • Explain why, for income tax purposes, management of Dorsey Co. would want as little of the purchase price as possible allocated
    9·1 answer
  • Decision Point: International Market Analysis You've done a considerable amount of research and have determined the follöwing Ap
    8·1 answer
  • What would be the net effect of the government increasing the taxes by $10 billion at the same time that it decreased spending b
    12·1 answer
  • For the past year, Zhao Events had taxable income of $198,600, beginning common stock of $68,000, beginning retained earnings of
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!