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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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Consider two processes. If both versions create the same benefit, but one costs more than the other, the higher-cost version is
vova2212 [387]

Consider two processes. If both versions create the same benefit, but one costs more than the other, the higher-cost version is less Efficient than the lower-cost version.

<h3>What is Process Quality?</h3>

Process Quality = measured in two dimensions: process effectiveness and process efficiency

Effective Business Process = enables the organization to accomplish its strategy. ex: investigating whether 3D printing will help accomplish the strategy of having the largest selection of parts in the industry

Efficiency Business Process = the ratio of benefits to costs. ex: consider two versions that create the same benefit, but one costs more than the other does, meaning the higher-cost version is less efficient than the lower-cost version/if both versions cost the same, but one generates less benefit than the other, then the lower-benefit one is less efficient.

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brainly.com/question/18559769

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8 0
1 year ago
Allocative efficiency occurs when the a. minimum of average total cost equals average revenueb. minimum of average total cost eq
Usimov [2.4K]

Answer: Allocative efficiency occurs when the<u><em> marginal cost equals the marginal benefit to society</em></u>

Allocative efficiency is a state of the economy in which production stand for individual preferences, every commodity or work is produced up to the state where the last part renders a marginal benefit to individual equal to the marginal cost of producing.

<u><em>Therefore the correct option is (c)</em></u>

3 0
3 years ago
Colorado Mountain Mining paid $ 896,900 for the right to extract mineral assets from a 500,000​-ton deposit. In addition to the
Zepler [3.9K]

Answer:

(a) The asset would be recorded in accordance to IAS 16 Property, plant & equipment.

Dr  Mining Asset   896,900

Cr       Bank                     896,900

(b) IAS 16 says that the costs incurred to make the asset ready for use must be capitalized as part of the asset. This means the license fee $1000 filing fee, License fee $2100 and $50,000 amount paid for geological survey must be capitalized. So the entry is as under:

Dr Mining asset (1k+2.1k+50k) $53,100

Cr                      Bank                       $53,100

(c) This assets must be depreciated on the basis of tons of minerals extracted which is 60 thousands tons in the first year.

Depreciation Expense = (60k tons / 500k tons)   * (Total capitalized cost)

=(60,000/500,000) * (896,900+53,100) = $108,000

The Double entry of Depreciation Expense would be as under:

Dr Depreciation Expense  $108,000

Cr                Accumulating Depreciation  $108,000

3 0
3 years ago
asset w has an expected return of 15.7 percent and a beta of 1.75. if the risk-free rate is 3.3 percent, what is the market risk
Marizza181 [45]

The market risk premium is 14.12. A market risk premium in finance and economic is used to measure how much the level of risk.

A risk premium means a measure of excess return that is used by an individual to compensate being subjected to an improved degree of risk. A risk premium is the common definition being the expected risky return less the risk-free return.

To find the amount of risk premium, we can calculate it use beta of the stock formula:

Beta of the stock = (expected return - risk-free rate) ÷ risk premium

Because we need the amount of  risk premium, then it will be:

Risk premium = Beta of the stock/(expected return - risk-free rate)

Risk premium =  1.75/(15.7% - 3.3 percent)

Risk premium = 1.75/(0.157 - 0.033)

Risk premium = 1.75/0.124

Risk premium = 14.12

Thus, the market risk premium is 14.12.

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5 0
1 year ago
Which factors can affect a stock's price? Check all that apply.
Tanya [424]
I have no idea haha but how’s your guys day going
8 0
2 years ago
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