1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Molodets [167]
3 years ago
10

In the Classical Theory, it is the price-wage-interest rate _____________ that restores the economy to full employment if Househ

old or Business spending declines..
Business
1 answer:
Amiraneli [1.4K]3 years ago
7 0

Answer:

flexibility

Explanation:

According to classical economists, the price-wage-interest rate flexibility refers to a combination of flexible factors that maintains economic stability:

  • Flexible interest rates keeps the money markets (loans) in equilibrium.
  • Flexible wages keeps the labor market in equilibrium.
  • Flexible prices keeps the goods and services markets in equilibrium.

Therefore, if spending declines, the economy will self-adjust using flexible interest rates (interest rates should lower), flexible wages (wages should lower) and flexible prices (prices should lower) until the economy rebounds.

You might be interested in
Quip Corporation wants to purchase a new machine for $300,000. Management predicts that the machine will produce sales of $200,0
butalik [34]

Answer:

net present value NPV = $79800

so correct option is D) $79,800

Explanation:

solution

we knw that Net Present value = PV of cash inflow - PV of cash outflow    ............1

so here PV of cash outflow = $300000  

and Net sales = $200000

expenses = $80000

Depreciation =  \frac{300000-50000}{5}

Depreciation =  $50000

so Net income before taxes  = Net sales - Depreciation - expenses

Net income before taxes =  $200000  - $80000 - $50000

Net income before taxes =  $70000

and Tax expenses @ 40% = $28000

so

Net income = Net income before taxes - Tax expenses

Net income = $70000  - $28000

Net income = $42000

and

Depreciation = $50000

Net cash inflow =  Net income + Depreciation

Net cash inflow =  $42000  + $50000

Net cash inflow = $92000

and

PVIFA @ 10% 5 years = $3.7908

so

PV of cash inflow = $348755

PV of salvage value = $50000 ×0.6209

PV of salvage value = $31045

and

so here  Total PV of total cash inflow = $379800

and

net present value  NPV =  Total PV of total cash inflow - PV of cash outflow

net present value NPV = $379800 - $300000

net present value NPV = $79800

so correct option is D) $79,800

7 0
3 years ago
What is the hypothetical economic and political system in which all people in society are socially equal?
creativ13 [48]
The answer is communism. It is a political and economic system derived from Karl Marx in which the main prolific resources in a society are possessed by the state and wealth is shared among citizens equally or according to an individual's need and each person is paid according to their skills and essentials.
3 0
3 years ago
If a concession stand received $5,550 in gameday sales, and its profit for the event was $3,330, what were the expenses?
frez [133]

Answer: $1,110 .

Explanation:

Given : Amount received by concession stand in gameday sales = $5,550

i.e. Gross income = $5,550

Profit  for the event = $3,330

i.e. Net income =$3,330

According to the Net income formula ,

Gross income - expenses = Net income

⇒ Expenses = Gross income - Net income

⇒ Expenses = $5,550- $3,330

⇒ Expenses = $1,110

Thus , the expenses were $1,110 .

3 0
3 years ago
Do you think it is easier to increase or decrease government spending
Anna35 [415]
It is much easier to increase government spending, because it gives a temporary boost, whereas decreasing it would take away the benefits you had before, and might mess up other "things" that relied on that part you just removed to decrease government spending.
4 0
2 years ago
Suppose the reserve requirement for the United States is 20%.
Ronch [10]

When the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.

<h3>What is Federal Reserve?</h3>

It should be noted that the Federal Reserve controls the monetary aspect in an economy.

In this case, when the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.

Also, when the Fed wants to decrease the money supply, the thing that should be done will be to sell bonds.

Learn more about Federal Reserve on:

brainly.com/question/25817380

6 0
2 years ago
Other questions:
  • Anthony, the plant manager, was talking with another manager about tim, the lead engineer in the corporate r &amp; d department.
    10·2 answers
  • etrus Framing's cost formula for its supplies cost is $1,760 per month plus $10 per frame. For the month of March, the company p
    15·1 answer
  • A plant asset was purchased on January 1 for $80,000 with an estimated salvage value of $20,000 at the end of its useful life. T
    8·1 answer
  • During its first year of operations, Ivanhoe Company had credit sales of $2,781,600, of which $368,300 remained uncollected at y
    6·1 answer
  • Stacy has been working hard for the past week to complete the proposal her team is submitting to top management. The team’s proj
    11·1 answer
  • Judd owns a struggling farm that is not making a lot of money. He wonders if he is doing something wrong and brings in an expert
    5·2 answers
  • 5. Consider a firm redesigning its logistics network. What are the advantages to having a small number of centrally located ware
    13·1 answer
  • 7. Family child care is typically located in A. a YMCA. B. a church or other faith-based institution. C. the provider's residenc
    13·2 answers
  • assuming that prices rise over time, which inventory cost flow assumption will result in the lowest cost of goods sold?
    8·1 answer
  • e exportation of large quantities of a product at a price lower than that of the same product in the home mark
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!