When the government lowers income taxes, consumption is Stimulated, causing a <span>rightward shift of the AD curve.
By lowering income taxes, the government will ensure an increase in average disposable income (part of the income that could be used to buy things). This will stimulate consumption and rightward movement in the Curve.</span>
Expected rate of return is defined as the amount of money an individual gets on investment.
<h3>What is expected return?</h3>
The expected return is the amount of profit or addition on money invested that an individual who is an investor is expected to get after a periods of time on the investment.
Therefore, expected rate of return is defined as the amount of money an individual gets on investment.
Learn more on rate of return below
brainly.com/question/16725994
#SPJ1
The beta of the new investment must be 1.098.
We need to use the concept of weighted averages to solve this problem.
We find the ratios of the dollar value of existing to the total new portfolio and additional investments to the total new portfolio and find the weights.
We then find the product of the beta of the existing portfolio and its respective weight calculated in the earlier step, with the given data.
We derive the product of the additional investment and beta by subtracting the answer from the earlier step from the new portfolio's beta (1.15).
Then we work backwards to arrive at the the beta for the additional investment.