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
Oksi-84 [34.3K]
3 years ago
15

Ricardian equivalence means that:

Business
1 answer:
kati45 [8]3 years ago
6 0

Answer:

changes in private savings offset any changes in the government deficit

Explanation:

Ricardian equivalence means that private saving changes offset any changes in the government budget. Therefore, if the deficit increases by 30, private saving also increases by 30 but the trade deficit and the budget deficit will not change.

In case of the Ricardian equivalence, economic agents are assumed to be perfectly rational. According to them, higher taxes are required to repay the debt in case of an increase in deficit-financed government spending.

You might be interested in
Economic facts in terms of number are known as​
arlik [135]

Answer: Index

Explanation:

Any economic fact expressed in terms of number is known as Index,

Index is the statistical change which represents the change in the individual data point. Index measures the change in the consumer goods and its price over time in different geographical locations. Some indices display market variations that cannot be captured in other ways.

5 0
3 years ago
Factoring service means:
Maksim231197 [3]
D) all of these...............
3 0
3 years ago
Which of the following is correct regarding a petty cash fund? A petty cash fund is used for minor purposes. A petty cash fund r
Harlamova29_29 [7]

Answer:

The correct answer is letter "D": All of the answers are correct regarding a petty cash fund.

Explanation:

Petty cash funds are sums of money that are useful for businesses to take care of small payments. These payments are too low to allow a check to be written for payment. In some businesses, each department maintains its own small cash box for expenses such as office supplies per unit.

For accounting purposes, transactions involving petty cash are documented only when the petty cash was totally spent and a new fund is to be created and recorded with a voucher.

3 0
3 years ago
SuperGroup has expressed the intention to begin selling in other countries, including China, while still protecting its Superdry
Paul [167]

Answer:

Marketing and sales segment.

Explanation:

  • A values chain consists of actions that a firm functioning in a public industry that performs in order to deliver a valuable product to the market.
  • The idea value chain is based on the process view of a manufacturing organization as a system of subsystems that transforms and processes money, labor, and materials, etc.
  • The marketing and sales is considered to be a primary function and include the creation of salesforce, advertising campaigns, and giving values to its customers, clients and partners.
5 0
3 years ago
Anne’s marginal income tax rate is 32 percent. She purchases a corporate bond for $19,500 and the maturity, or face value, of th
Bess [88]

Answer:

6.0%

Explanation:

Given that :

Marginal income tax rate = 32%

Interest rate before taxes = 8.8%

Annual after-tax rate of return if bond matures in 10 years will be the same as the annual after tax rate of return since the annual rate is constant.

Hence,

Annual after tax rate of return = Interest rate × (1 - tax rate)

Annual after tax rate = 8.8% × (1 - 32%)

Annual after tax rate = 0.088 × (1 - 0.32)

Annual after tax rate = 0.088 × 0.68

Annual after tax rate = 0.05984

= 0.05984 × 100%

= 5.984% = 6.0%

6 0
3 years ago
Other questions:
  • If the rate of interest increases 1 percent, what will be the bond’s new price
    12·1 answer
  • Gienuine Products Inc. requires a new machine. Two companies have submitted bids, and you have been assigned the task of choosin
    5·1 answer
  • Terry’s Frame & Art Shoppe produces and sells picture frames to clients at $8.00 per picture frame. The variable cost to pro
    11·1 answer
  • The following monthly data are available for Crane Company. which produces only one product: Selling price per unit, $38; Unit v
    7·1 answer
  • The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share
    13·1 answer
  • Chang, the founder of a multinational corporation, believes that his business should mainly focus on the benefit of those people
    11·1 answer
  • The Wall Street Journal reported that automobile crashes cost the United States $162 billion annually (The Wall Street Journal,
    5·1 answer
  • A client with a high risk tolerance anticipates that the market will remain flat for the next 3 months. Which position would pro
    8·1 answer
  • Gerald's tire store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a
    6·1 answer
  • The June 1 work in process inventory consisted of 4,100 units with $14,700 in materials cost and $12,300 in conversion cost. The
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!