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Ostrovityanka [42]
3 years ago
14

If the Ricardian equivalence theorem LOADING... is not​ relevant, then an​ income-tax-rate cut A. will result in a multiple time

s higher increase in equilibrium real GDP in the long​ run; however, a​ tax-rate reduction will increase the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be more stable. B. will result in a multiple times higher decrease in equilibrium real GDP in the long​ run, however; a​ tax-rate reduction will reduce the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be more stable. C. will result in a multiple times higher increase in equilibrium real GDP in the short​ run; however, a​ tax-rate reduction will reduce the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be less stable. D. will result in a multiple times higher decrease in equilibrium real GDP in the short​ run; however, a​ tax-rate reduction will increase the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be less stable.
Business
1 answer:
LenKa [72]3 years ago
6 0

Answer:

The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short​ run; however, a​ tax-rate reduction will increase the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be less stable.

Explanation:

Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.

This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.

If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.

The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.

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Answer:

Explanation:

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8 0
3 years ago
Which of the following are examples of how everyday people use the skill of technology in their daily skills
Vitek1552 [10]

The sentence that depicts the examples of how everyday people use the skill of technology in their daily skills is option E. All of these are examples of how everyday people use the skill of technology in their daily skills

<h3>What is technology?</h3>

Technology is the result of compiled knowledge and application of skills, methods, and processes used in industrial production and scientific research. Technology is found in the operation of all machines, with or without detailed knowledge of their function, for the intended purpose of an organization.

Therefore the correct answer is option E. All of these are examples of how everyday people use the skill of technology in their daily skills

The complete question goes thus:

Which of the following are examples of how everyday people use the skill of technology in their daily skills

A. Paying bills online

B.Checking email on their phone

C.Scanning a transportation card on the subway

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E. All of these are examples of how everyday people use the skill of technology in their daily skills

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6 0
2 years ago
Examine this supply and demand graph for a product. What does the red dot
pantera1 [17]

The product’s equilibrium price

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7 0
3 years ago
You purchased an annual interest coupon bond one year ago that had six years remaining to maturity at that time. The coupon inte
Marat540 [252]

Answer:

The correct answer to the following question will be "8%".

Explanation:

The given values are:

Number of years of maturity = 5 years

Interest rate of coupon = 10%

                           = 10%×1000

                           = 100

Yield to maturity, YTM = 8%

As we know,

Price of Bond = PV of Coupons + PV of Per Value

On putting the values in the above formula, we get

⇒                     = \frac{100\times (1-(1+8 \ percent^{-5}))}{8 \ percent} +\frac{1000}{1+8 \ percent^{5}}

⇒                     = 1079.85

After 1 years, we get

Price of Bond = PV of Coupons + PV of Per Value

On putting the values in the above formula, we get

⇒                     = \frac{100\times (1-(1+8 \ percent^{-4}))}{8 \ percent} +\frac{1000}{1+8 \ percent^{4}}

⇒                     = 1066.24

Now,

The total return rate = \frac{(1066.24-1079.85+100)}{1079.85}

                                   = \frac{86.39}{1079.85}

                                   = 8 \ percent

7 0
3 years ago
If the contribution margin is not sufficient to cover fixed expenses: a. total profit equals total expenses. b. a net operating
erik [133]

Answer:

Option b. a net operating loss occurs.

Explanation:

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3 0
3 years ago
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