Answer:
D. Through the government purchases multiplier, the $1 increase in government spending will lead to an increase in aggregate demand and national income, which will lead to an increase in induced spending.
Explanation:
We know,
Multiplier = Changing real equilibrium GDP ÷Change of government spending.
If we increase the multiplier, government spending will lead to an increase in aggregate demand that is potential GDP is higher than actual GDP and national income, which will lead to an increase in induced spending. Therefore option D is the correct answer as options A, B, and C do not meet the requirements.
Answer:
2.5%
Explanation:
Calculation for what is the alpha of the stock
Using this formula
Alpha of the stock= Realized Return - (Market Return *Beta)
Let plug in the formula
Alpha of the stock= 10% - (6% * 1.25)
Alpha of the stock= 0.10 - (0.06 * 1.25)
Alpha of the stock= 0.10 - 0.075
Alpha of the stock= 0.025 *100
Alpha of the stock=2.5%
Therefore the alpha of the stock will be 2.5%
The correct answer to this statement is true. It is because a data feed is responsible for providing ongoing streams in regards to a structured data by which it allows and provides the users to update current information that could be important and for their own benefit.
Answer:
The correct answer is option B.
Explanation:
A recessionary gap implies that the resources are not being fully utilized. This means resources are being wasted.
An expansionary gap, on the other hand, means that the economy is producing at more than potential level. The price level at this point is high. There is a tendency for inflation to develop in this situation.
To curb the recessionary gap the economy can adopt the expansionary fiscal and monetary policy. While to curb expansionary gap, contractionary monetary and fiscal policy can be adopted.