Answer:
the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
Explanation:
"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." This policy directive follow the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
<u>The reason is that in the short-run, deficits offer economic solutions by being an antidote to recessions, hence they could be a strategy of recession management in the short run</u>
<u>However in the long-run, deficits are not advisable as they could lead to debts because the major way to manage such deficits is by external borrowings. </u>
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Answer:
Variable expenses. I'm not sure
Answer:
Thrifts role have decreased whereas, mortgage and commercial banks roles have increased.
Explanation:
In simple words, Credit unions and cooperative savings banks are examples of thrifts that offer a multitude of deposits and lending services. Thrifts are different from conventional institutions in that organizations may draw money through the Federal Home Loan Bank Network, allowing them to charge greater interest to its members.
The ease of doing business and less documentation with commercial banks promoted their growth.
Answer:Actual returns is the actual gain or loss an investor gets on an investment while Expected return is the return an investor is expected to get on an investment which can be positive or negative.
Explanation: Actual returns is the return an investor actually receives on his investment which can affects its net worth positively or negatively. It can be referred to as the internal rate of return on an investment.
Expected return is also known as anticipated rate of return. It is not certain but it is an expectation. It can be calculated as the expected value of an investment. It is used to calculate the viability of an investment. It is historical in nature and therefore it does not have a guaranteed outcome.
