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amid [387]
3 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]3 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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Mondo Corporation is a U.S. firm that invoices some of its exports in Japanese yen. If it expects the yen to weaken, it could __
Allisa [31]

Answer:

The answer is 'sell future contracts on yen

Explanation:

Futures contract is a form of derivative that is standardized. It occurs through the exchange rather than over the counter. It is safe from default or counterparty risk because the clearing house guarantees any loss.

Futures contract obligates the parties involved to either buy or sell the underlying security.

Because Mondo corporation is expecting some of its exports in yen and it is afraid of fall in exchange of yen relative to US dollar, to hedge the risk, it must sell future contracts on yen.

5 0
2 years ago
5) An advertiser is launching a campaign to educate people on its new products. The products are complex and require more detail
jek_recluse [69]

Answer:

The advertiser should optimize the Clicks metric

Explanation:

Remember, we are told that the products are complex and require more detailed explanation than possible in the ads, so it implies improving the clicks metric (number of clicks per user) allows the advertiser to understand whether the users are interested in the ad or web page so as to adjust strategy accordingly.

3 0
2 years ago
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, I
Arisa [49]

Answer:

15.4%

Explanation:

Calculation to determine your best guess for the rate of return on the stock

The revised estimate on the rate of return on

the stock would be:

Before

14% = α +[4%*1] + [6%*0.4]

α = 14% - 6.4%

α = 7.6%

With the changes:

7.6% + [5%*1] + [7%*0.4]

= 7.6% + 5% + 2.8%

= 15.4%

Therefore your best guess for the rate of return on the stock will be 15.4%

3 0
3 years ago
For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement
Y_Kistochka [10]

Answer:

1. Decrease in accounts payable during a period - Deducted from net income  (B)

2. Declaration and payment of a cash dividend - Cash outflow (financing activity ) (E)

3. Loss on disposal of land - Added to net income (A)

4. Decrease in accounts receivable during a period -  Added to net income (A)

5. Redemption of bonds for cash - Cash outflow (financing activity)  (E)

6. Proceeds from sale of equipment at book value - Cash inflow (investing activity ) (D)

7. Issuance of common stock for cash - Cash inflow (financing activity)  (F)

8. Purchase of a building for cash - Cash outflow(investing activity ) (C)

9. Acquisition of land in exchange for common stock - Significant non-cash (investing and financing activity ) (G)

10. Increase in inventory during a period - Deducted from net income (B)

8 0
3 years ago
Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is
Amiraneli [1.4K]

Answer:

total cost of mine  = $1,400,000 + $400,000 = $1,800,000

estimed number of tons of ore = 1,000,000

residual value of land at the end of the mine =  $200,000

depletion expenses  per ton of ore =  ($1,800,000 - $200,000)/1,000,000

                                                          =  $1,600,000/1,000,000

                                                          = $1.6/ton

total depletion expenses  for the first year =  Ddepletion expenses per ton x number of ton of ore produced

                                                                 =  $1.6 x 180,000  

                                                                 =   $288,000

Explanation:

3 0
3 years ago
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