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3 years ago

What do Keynesians mean when they say that "you can't push on a string"?

Business

1 answer:

sergij07 [2.7K]3 years ago

7 0

Answer:

c. An increase in the money supply will not always stimulate the economy.

Explanation:

The central bank with a series of bad policies or with the intention to do it, it can slow down the economy or generate a recession by changing interest rates, money supply and other instrument.

But, it cannot stimulate "push" the ecnomy with the same instrument or measure it used to slow dowm (interest rate and money supply)

Thus, making the central bank ineffective to drive the economy out of a recesssion.

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True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.

aleksklad [387]

It is false that the effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.

Tax refer compulsory levy or contribution place on individual, organization or state which is levied by government majorly on workers income or business profits of companies or can be added to cost of goods, services or even any transactions done.

Therefore, It is false that the effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers because the effect of tax on consumers or producers is normally determined by price elasticity.

Learn more about tax from the link below.

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5 0

2 years ago

Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transa

VLD [36.1K]

Answer:

(a) Cash reduction, no effect on net income

(b) Net income reduction, no effect on cash

(d) Cash increase, no effect on net income

(e) Cash reduction, no effect on net income

Explanation:

When items or services are exchanged for cash, these may be recognized as assets or expenses. While expenses reduce income, assets do not as it forms the exchange of one asset (cash) for another.

Considering the transactions in light of the above,

a) Purchased $100 of supplies for cash - Supplies are inventory (an asset) and would not reduce net income until it is used up

(b) Recorded an adjusting entry to record use of $20 of the above supplies. No effect on cash, entry is a reduction in supplies and recognition of cost of goods sold. As such net income reduces.

(c) Made sales of $1,200, all on account. - Sales on account are credit sales. This will be recognized as a credit to sales (increase in net income) and a debit to accounts receivable.

(d) Received $800 from customers in payment of their accounts. - To recognize this, we debit cash (increase in cash) and debit accounts receivable. This has no effect on net income.

(e) Purchased equipment for cash, $2,500 - Again, this is he exchange of cash for an asset. This has no effect on income.

3 0

3 years ago

Please help! The marginal revenue product of the second worker is

Setler [38]

Answer:

The marginal revenue product of the second worker is $150.

Explanation:

This is because when we change from 1 worker to 2 workers, the total product increases by 30 (from 20 when there were 1 worker to 50 when there wew 2 workers).
The value of this extra product, considering that the price of every T-shirt is $5 (marginal revenue of this product) equals $30\times\$5=\$150$ .
This is additional value in dollars that the company has because incuding an extra employee when it changes from oneto two employees.

8 0

4 years ago

Donatello Co. has identified an activity cost pool to which it has allocated estimated overhead of $9,600,000. It has determined

Luden [163]

Answer:

$9,600,000

Explanation:

The computation of overhead assigned to each product is shown below:-

Overhead rate activity = Total overhead cost ÷ Total number of activity

= $9,600,000 ÷ $800,000

= $12

So, the Total overhead assigned to each product = (Widgets × Overhead rate activity) + (Gadgets × Overhead rate activity) + (Targets × Overhead rate activity)

= ($200,000 × 12) + ($150,000 × 12) + ($450,000 × 12)

= 2,400,000 + 1,800,000 + 5,400,000

= $9,600,000

Therefore for computing the overhead assigned to each product we simply applied the above formula.

4 0

4 years ago

the two ways that a company can issue new securities and thereby raise capital in the primary market are through:

Airida [17]

Private Placement and Investment Banking Process, are the two ways that a company can issue new securities and thereby raise capital in the primary market

<h3>What is Primary Market?</h3>

The primary market is the area of the capital market where securities are issued and sold to buyers directly by the issuer, who then receives the proceeds.

Companies, governments, or public sector organizations can raise money in a primary market by issuing bonds, and corporations can do the same by selling new stock in an IPO (IPO). A financing syndicate of securities dealers, investment bank, or underwriter is frequently used for this.

Securities are issued by firms to investors directly in the primary market. Either a further public offering (FPO) or an IPO is used to issue securities (FPO). Through an initial public offering (IPO), a business can raise capital from investors and go public.

A business can raise money on the primary market by selling preference shares. Securities, equity, and debt

To know more about Primary markets, visit:

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3 0

1 year ago