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amid [387]
4 years ago
15

According to David Ricardo, increases in government spending unaccompanied by tax increases will not necessarily increase aggreg

ate demand because a. consumers will consume less and save more to prepare for increased taxes in the future. b. the private sector is more likely than the public sector to spend any extra income on national defense. c. consumers will increase their consumption proportionately more than Keynesian economists believe they will. d. consumers will save less than they otherwise would have.
Business
1 answer:
Nataliya [291]4 years ago
5 0

Answer:

Option (a) => consumers will consume less and save more to prepare for increased taxes in the future.

Explanation:

The man named David Ricardo was one of the great Economist of his time. David was born on the 18th day of the month of April, in the year 1772 in London,United Kingdom. David Ricardo died on the 11th day of the month of September, in the year 1823.

David Ricardo worked and proposed a theory called the ricardian equivalance. The ricardian equivalance theory is actually about how Government spend and how taxes are being distributed. The theory simply says that if the Government spend a lot without taxing the citizens,the citizens tends to save more because they(citizens) know that they(Government) will later increase their tax so as to balance the spendings by the government. Therefore, option (a) is correct.

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Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 39%. The T-bill rate
Shtirlitz [24]

Answer:

y = 50 %

Explanation:

As per the data given in the question,  computation are as follows:

Expected return = y × expected rate of return for portfolio + (1 - y) × rate of T-bills

By putting the value from the given data in the above formula, we get

0.09 = y×0.12 + (1 - y)×0.06

0.09 = 0.12y + 0.06 - 0.06y

0.03 = 0.06 y  

y = 0.50

= 50%

4 0
4 years ago
Firms often use _____ advertising to convince consumers to take action such as switching brands, trying a new product, or even c
inysia [295]
<span>The answer to the question is persuasive. A persuasive advertisement is one that can convince a consumer to switch from one brand to another, or to stay loyal to a brand. Firms use persuasive advertising as part of their marketing strategy to keep customers and to also attract new ones.</span>
8 0
3 years ago
Marcy Tucker received the following items this year. Determine to what extent each item is included in her AGI. (Leave no cells
musickatia [10]

Answer: A. $0

B. $500

C. $8,000

D. $0

Explanation:

A. $0.

The $25,000 is a cash gift from her parents which is a cash gift from relatives and so is not included in the AGI.

B. $500

The entire amount is included in her AGI as winnings from competitions are included in AGI calculations.

C. $8,000

Alimony payments are included in AGI calculations so the whole alimony figure is to be included.

D. $0

Cash inheritance is not to be included in AGI calculations for tax purposes so the entire figure of $100,000 should not be included.

6 0
4 years ago
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has iden
attashe74 [19]

Answer:

(a) unit level activity

(b) Product level activity

(c)Facility level activity

(d) Batch level activity

(e) unit level activity

(f) batch level activity

(g) facility level activity

(h) unit level activity

Explanation:

Unit level activity : It is that type of activity which is deals with only unit of product whether it is a selling unit, variable cost unit , direct material unit, direct labor unit or fixed cost unit.

Batch level activity: It is that type of activity which focuses on batches or bulk goods so that good discount to be provided due to which customers  are happy that results in increase in sales.

Product level activity: It is that type of activity which deals in a single product or we can say finished product which is ready to sale.

Facility level activity: It is that type of activity which aims in giving the facilities relating to the product or charges some taxes.

BY going through the meaning of each one of the activity level, we get to know that (a) unit level activity

(b) Product level activity

(c)Facility level activity

(d) Batch level activity

(e) unit level activity

(f) batch level activity

(g) facility level activity

(h) unit level activity

6 0
3 years ago
You would cut the mirepoix ingredients smaller when making a fish fumet than when making a beef stock because the
Stolb23 [73]

Answer:

The correct answer is (A) fish has a more delicate flavor

Explanation:

From the given information from the question which says that:

You would cut the mirepoix ingredients smaller when making a fish fumet than when making a beef stock because, the fish will have a more delicate flavor.

4 0
4 years ago
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