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Illusion [34]
3 years ago
5

The new classical critique of activist fiscal policy is theoretically different from the crowding-out critique. Crowding-out occ

urs when private spending __________ in response to government spending. Under the new classical critique, increased government spending leads people to __________ their current savings in order to help pay for higher taxes in the future, which increases the __________ of loanable funds.
1) decreases; decrease; supply
2) increases; increase; demand
3) decreases; decrease; demand
4) decreases; increase; supply
Business
1 answer:
yawa3891 [41]3 years ago
5 0

Answer:

The correct answer is 4) Decreases, increase, supply

Explanation:

  • Crowding out occurs when private spending decreases in response to government spending.

Goverment spending causes the interest rate to rise, and a higher interest rate means less private spending.

  • Increased goverment spending leads people to increase their current savings.

Government has three sources of income: issuing debt, printing money, and collecting taxes. When the goverment increases spending, people expect taxes to increase as well, because it is usually the most important financial source for the goverment.

  • Which increases the supply of loanable funds.

The more income is saved, the more of it can be saved. An economy without savings cannot invest because it would use all of its income to pay for expenses. If people begin to save more, for example, in the bank, the bank will have more deposits available to loan to firms, that will use those loans to invest.

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Answer:

Cash (Dr.) $50,000

Lease Receivable (Cr.) $50,000

Explanation:

Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.

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2 years ago
The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakesfor $1.00 each. What is the opportun
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Answer:

D) $1.00

Explanation:

Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives.

If I buy a cappuccino, I have forgone the opportunity to buy Russian tea cakes. Therefore, my opportunity cost is the price of Russian tea cakes.

I hope my answer helps you.

7 0
2 years ago
The systems viewpoint sees organizations as entities made up of four interrelated parts known as Group of answer choices inputs,
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Answer:

inputs, outputs, transformation processes, and feedback.

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The viewpoint of the system that could see the organziation as the entities as they should be made of the input as the raw material, output as the finished product, transformation process as when the raw material is converted into the finished product and the feedback as the client feedback related to the product and service

So as per the given situation the above should be the answer

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3 years ago
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Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable cont
sergejj [24]

Answer:

Complete question is attached in form of image.

a). Maximum amount of charitable deduction for Cash Contrbutions = 7650 + 5450

= $ 13100

a). Maximum amount of charitable deduction for Property Donations

= 15250 + 18375

= $ 33625

The amount of deduction for contribution to American Heart Association will be the amount equal to the cost of antique painting given to the american heart association.

The amount of deduction for contribution to First Methodist Church will be the amount equal to the FMV of Coca-Cola stock given to the first methodist church.

FMV stands for Fair market value.

Maximum amount of charitable deduction for Cash contribution = $ 13100 and Maximum amount of charitable deduction for Property donation = $ 33625.

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3 years ago
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