Answer:
<u>smaller deficit</u>.
Explanation:
A smaller deficit than the current deficit is the ideal answer to fill the gap. A deficit occurs when expenditures are greater than revenues, so in an economy with a surplus, revenues will be larger than expenses, so the standardized employment deficit will be smaller than the current one, because an economy with a GDP that exceeds its potential , is an economy that is expanding, production is larger, which consequently increases the employment rate and decreases the deficit.
Answer:
Depositing in bank is a better option.
Explanation:
For this solution, we can either determine the interest rate given to George by his one of the friend or the future worth method,
Future worth method is used here,
Given that,
PV = $6,900
R = 9%
N = 10 Years



FV = 6,900 × 2.3673
FV = $16,334.81
Since, the future worth of investing in bank is more than the money to be offered by the George's friend (16,334.81 > 12,900) and hence, depositing in bank is a better option.
Monetary policy is used to control the size of the money supply to stimulate or moderate business activity levels in the economy. in contrast, fiscal policy uses government spending and taxation to do the same.
<h3>What is monetary and fiscal policy?</h3>
Fiscal policy are the steps taken by the government to change the business levels in the economy. The tools of fiscal policy are taxes and government spending. Fiscal policy can be expansionary or contractionary.
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes. Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Monetary policy are policies taken by the central bank of a country to shift aggregate demand. The tools of monetary policy are open market operations, reserve requirement and discount rate.
Expansionary monetary policy are polices taken in order to increase money supply. Contractionary monetary policy are policies taken to reduce money supply.
To learn more about monetary policy, please check: brainly.com/question/3817564
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Answer:
the first option is the correct one
Answer:
I should invest in dollar deposits.
Explanation:
Current exchange rate is 1 euro = $1.08
Assuming I have y euro, the equivalent in dollar is $1.08y
Rate of return on dollar deposit = 2% = 0.02
Return on investment = $1.08y + (0.02 × $1.08y) = $1.08y + $0.0216y = $1.1016y
Rate of return on euro deposit = 1% = 0.01
Return on investment = y euro + (0.01 × y euro) = y euro + 0.01 y euro = 1.01y euro = 1.01y × $1.08 = $1.0908y
I should invest in dollar deposits because the return on investment is greater than euro deposits.