Answer:
Contractionary fiscal policy to prevent real gdp from rising above potential real gdp would cause the inflation rate to be <u>LOWER</u> and real gdp to be <u>LOWER</u>.
Explanation:
A government engages in contractionary fiscal policy when it decreases spending or increases taxes. This is done to lower the economy's inflation rate, but it also decreases aggregate income which will decrease aggregate supply, resulting in a lower real gross domestic product.
The basic role of the European Normal Market was to lay out a tax-free progression of merchandise among part countries. In 1957, the European Normal Market was shaped by six industrialized Western countries to extend exchange by finishing duties and permitting capital.
The Normal Market was an economic deal, not a dispersion place for merchandise. It was exclusively for Western industrialized nations. The Normal Market didn't diminish reliance on unfamiliar oil saves as the Bedouin Ban of the 1970s illustrated. The Normal Market was for industrialized and expanded economies.
Learn more about European market:
brainly.com/question/7243515
#SPJ4
Answer:
Option (C) is correct.
Explanation:
Return on Equity (ROE) = ?
Using DuPont Model, the Return on Equity (ROE) is calculated by using the following formula
:
Return on Equity (ROE):
= Net Profit Margin × Total Asset Turnover × Equity Multiplier
= [Net Income ÷ Sales] × [1 ÷ Capital Intensity Ratio] × Equity Multiplier
= [$48,200 ÷ 947,100] × [1 ÷ 0.87] × 1.53
= 5.0892% × 1.1494 × 1.53
= 8.95%
True,When comparing a 10-year bond versus a 1-year bond, the 10-year bond has a much greater interest rate risk
<h3>What is
bond?</h3>
A bond is a sort of financial security in which the issuer owes the bearer a debt and is obligated to repay the principle of the bond as well as interest over a specified period of time, depending on the terms. Interest is normally paid at regular intervals.
Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a firm. The investor agrees to contribute the corporation a particular sum of money for a set length of time. In exchange, the investor receives interest payments on a regular basis.
To know more about bond follow the link:
brainly.com/question/25965295
#SPJ4
