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Lyrx [107]
3 years ago
9

Which fiscal policy would be the most contractionary? 
A. A $40 billion increase in taxes
B. A $50 billion increase in governmen

t spending
C. A $50 billion decrease in government spending
D. A $40 billion decrease in government spending and a $10 billion decrease in taxes
Business
1 answer:
Elena L [17]3 years ago
5 0

Answer: Option (C) is correct.

Explanation:

Correct option: A $50 billion decrease in government spending would be the most contractionary fiscal policy.

A. Increase the taxes by $40 billion is also a contractionary fiscal policy but it doesn't have a greater impact than decreasing  the government spending by $50 billion.

B. It is an expansionary fiscal policy.

D. There are both expansionary fiscal policy by decreasing taxes by $10 billion and contractionary fiscal policy by decreasing government spending by $40 billion. But it doesn't have much impact as the option (C) is having.

Therefore, Option (C) is having the most contractionary fiscal policy.

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Which of the following is least likely a function of the centeral bank in an economy? 1. Managing the country's foreign exchange
Pavlova-9 [17]

Answer:

the rigt answer is A.

Explanation:

One of the main functions of the central bank is to manage and protect gold and foreign exchange reserves in the country.

5 0
3 years ago
Severance pay plans grant employees weekly benefits in addition to state unemployment compensation. True
Yanka [14]

Answer:

False

Explanation:

In simple words, Severance pay can be understood as a salary and/or incentives given to an individual by a company after the job is over. In order to help an individual obtain a new job, severance arrangements can include additional rewards, such as life care and observer ship support.

Thus, the weekly benefits are not included in this and the above statement is incorrect.

4 0
3 years ago
What approaches do supermarkets use to offset variations in customer traffic intensity?
Julli [10]
Based on earlier studies or history of the supermarket they would know when the busy times of the day are, with that they would deliver in more crowd.
They would need the various server systems to cost out how many crowds they would want to have worked to help limit the number of customers in line and their wait time in line.
3 0
3 years ago
Choose one current event. Describe the event and discuss the economic implications of this event. What economic effects might th
Oksana_A [137]
North Korea Nuclear testing. Since China is doing nothing to stop it, sanctions can be placed on China (maybe) and aid provided to Japan's defense department as well as south koreas.

7 0
3 years ago
Read 2 more answers
Consider this case: Last year, Jackson Tires reported net sales of $80,000,000 and total operating costs (including depreciation
Burka [1]

Answer:

<em>Value added:</em> 8,450,000

Explanation:

net sales                  80,000,000

operating cost:     <u> (52,000,000)  </u>

EBT                          28,000,000

tax expense:

28,000,000 x 40%<u>  (11,200,000)  </u>

Net income              16,800,000

<u>Assets: </u>83,500,000

cost of capital: 83,500,000 x 10%  = 8,350,000

<em></em>

<em>Value added:</em>

16,800,000 - 8,350,000 = 8,450,000

6 0
3 years ago
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