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3 years ago

Who is responsible for fiscal policy?

Business

1 answer:

TiliK225 [7]3 years ago

3 0

Answer:

C. The federal government controls fiscal policy.

Explanation:

Fiscal policy are policies enacted by the government using its spending or taxes to stabilise the economy. There are two types of fiscal policy, expansionary and contractionary fiscal policy.

1. Expansionary fiscal policy is a policy that increases the money supply in an economy. They include :

A. Reduction of taxes - this increases disposable income and increases consumer spending which increases money supply.

B. Increased government spending- this is when government increases its spending usually on public projects.

2. Contractionary fiscal policy are policies that reduces the money supply in an economy. They include:

A. Increase in taxes- an increased tax reduces disposable income and money supply in an economy.

B. Reduced government spending - reduced government spending reduces money supply.

Monetary policy is policy controlled by the Federal Reserve.

I hope my answer helps you.

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3 years ago

What is the change in net income if fixed cost of $20,000 can be avoided and Frannie could rent out the factory space no longer

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Answer:

Note <em>The full question is attached as picture below</em>

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1). Purchasing cost = 10,000* $18

Purchasing cost = $180,000

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Making cost = $65,000 + $55,000 + $30,000

Making cost = $150,000

Difference in cost (Per unit) = ($180,000-$150,000) / 10,000\

Difference in cost (Per unit) = $3

Change in net income = $180,000 - $150,000

Change in net income = $30,000 (Decrease)

2. Purchasing cost = 10,000*$18

Purchasing cost = $180,000

Making cost = Direct material + Direct labour + Variable overhead + Fixed overhead

Making cost = $65,000 + $55,000 + $30,000 + $20,000

Making cost = $170,000

Difference in cost (per unit) = ($180,000 - $170,000) / 10,000

Difference in cost (per unit) = $1

Change in net income (decrease) = $170,000 - $180,000

Change in net income (decrease) = $10,000

3. Purchasing cost = $180,000 - $20,000

Purchasing cost = $160,000

Making cost = Direct material + Direct labour + Variable overhead + Fixed overhead

Making cost = $65,000 + $55,000 + $30,000 + $20,000

Making cost = $170,000

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3 years ago

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4 years ago

A surplus or shortage in the money market is eliminated by adjustments in the price level according to classical theory, but not

Andre45 [30]

Answer:

The correct answer is option A.

Explanation:

According to the classical theory, the quantity of money is directly related to price level. So, any shortage or surplus in the money market can be corrected by increasing or decreasing price level.

According to the liquidity preference theory, however, money is demanded for transactionary, precautionary and speculative motive. So, only price level does not affects the quantity of money. Interest rates also effect the demand for money.

So, option A is the correct answer.

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3 years ago

Read 2 more answers

Who is responsible for fiscal​ policy?

Who is responsible for fiscal policy?