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DochEvi [55]
3 years ago
11

Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using mon

etary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following statements about the debate over stabilization policy are correct? Check all that apply.
A. Advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.
B. Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.
C. Advocates of active stabilization believe that automatic stabilizers have no effect on aggregate demand.
C. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
Which of the following are examples of automatic stabilizers? Check all that apply.
A. Corporate income taxes
B. Personal income taxes
C. The federal funds rate.
Business
1 answer:
amm18123 years ago
5 0

Answer:B. Opponents of active stabilization policy believe that significant time lag in both fiscal and monetary policy often excercebate economic fluctuations.

C. Advocate of active stabilization policy believe that the government can adjust monetary and fiscal policy to counter waves of excessive optimism and pessimism among consumers and business.

Examples of automatic stabilizer

A. Corporate income taxes

B. Personal income taxes

Explanation:

Stabilization policy helps to stabilize the economy during expansionary or deficit period however a lag in the implementation will surely affect getting the right outputs from the implementation.

The economy has inbuilt stabilizer s that tend to correct excessiveness in economy such as the personal and corporate tax . The federal fund rate will be adjusted as the need be to stabilizer the economy even though it can be used as a stabilizer but it's not an automatic stabilizer.

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A certain organization trying to decide where to locate their future factory is considering three locations. They are taking int
Llana [10]

Answer:

SITE A

Explanation:

Given :

FACTOR___ WEIGHT _SITE A_ SITE B _SITE C

Labor Cost __ 0.25 _____92 ____82____ 84

Curr Stability _ 0.35 _____75 ___ 85____ 88

Prox Market __ 0.30 ____ 80 ____50 ___ 60

Taxes _______ 0.10 _____69 ___ 88 ___ 91

SITE A:

(0.25 * 92) + (0.35*75) + (0.30*80) + (0.10*69) = 80.15

SITE B :

(0.25 * 82) + (0.35*85) + (0.30*50) + (0.10*88) = 74.05

SITE C :

(0.25 * 84) + (0.35*88) + (0.30*60) + (0.10*91) = 78.90

Using the weighed factor model;

The based site for locating the facility is SITE A as it has the highest weighted value

4 0
3 years ago
Sam wanted to open a file that he saved yesterday. Which component inside the computer stores this file?
Dmitriy789 [7]
The answer would be hard drive
7 0
3 years ago
Read 2 more answers
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 37,000 shares authorized, 19,2
kipiarov [429]

Answer:

E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.

Explanation:

The Journal entry is shown below:-

Retained earnings Dr, $7,400 (14,800 × $0.50)

             To Common dividend Payable $7,400

(Being dividend declaration is recorded)

Here to record the dividend declaration we simply debited the retained earnings as it decreased the stockholder equity and credited the common dividends payable as it increased the liability

So the correct option is D.

4 0
3 years ago
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.
Elden [556K]

Answer:

A. $2,500

B. $60

Explanation:

A. Calculation to determine How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position

Initial Margin = 100*$50*50%

Initial Margin = $2,500

Therefore The amount of securities that you must put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position is $2,500

b. Calculation to determine How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position

First step is to calculate the Maintenance Margin per share

Maintenance Margin per share = $50*30%

Maintenance Margin per share =$15

Second step is to calculate the Rise in price required

Rise in price required = $50*50% - $15

Rise in price required= $10

Now let calculate How high can the price of the stock go

Price of stock=$50+$10

Price of stock= $60

Therefore How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position is $60

8 0
3 years ago
Cyclical unemployment:_________
STatiana [176]

Answer: Occurs only during a recession.

Explanation:

Cycling unemployment is a kind of unemployment where company lay-off workers because they can't meet up with their payments: as a result of a general drop in the demand for goods and services in the economy of country.

Cyclical unemployment are very common in recessions as companies then massively drop workers in their establishment due to general low economic activities.

8 0
4 years ago
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