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Serjik [45]
3 years ago
13

If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary the: 


A. Smaller is the economy's MPS
B. Larger is the economy's MPS
C. Smaller is the economy's MPC
D. Larger is the unemployment rate
Business
1 answer:
Varvara68 [4.7K]3 years ago
3 0

Answer:

The correct answer is option A.

Explanation:

An expansionary fiscal is adopted to boost economic activities. It is used in case of a recession. The main tools of expansionary fiscal policy are a decrease in taxes and an increase in government spending.

A cut in taxes will be more expansionary if the MPS or marginal propensity to save is smaller. Smaller MPS means when the disposable income increases because of the tax cut, the consumers will save less and consume more of their income. This will cause an increase in demand and consequently, an increase in output and employment.

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brilliants [131]

Answer:

A recession

Explanation:

A recession is a period of slow or negative economic growth that lasts several months. In a recession, there is a general decline in productivity in the economy. In other words, the GDP growth rate drops too low or turns negatives.

Due to low productivity, unemployment rate rises as the industries and services sectors lay-off workers instead of creating job opportunities.  There is reduced consumer confidence leading to low retail sales and a decline in prices.

Negative growth implies reduced levels of investment in the economy. Businesses experience low profits, and hence, stock prices fall.  Economist considers recessions a part of a normal business cycle.

8 0
3 years ago
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $74,000 and $3,900, r
Nadya [2.5K]

Answer:

The 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement

Explanation:

The non-collectible accounts expenses on its Year 2 income statement is shown below:

= Ending balance + write off balance - opening balance

= $6,000 + $7,200 - $3,900

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The accounts receivable is not to be considered because we have to find out the uncollectible accounts expense, so the account receivable balance should not be taken in the computation part.

Hence, the 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement

5 0
3 years ago
Tiffany has $5000 of savings in her bank account. What would be different if she had that $5000 invented in stocks instead?
Alex73 [517]
What would be different is The money she has
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3 years ago
Suppose that in 1969, the U.S. economy was operating close to potential. The budget deficit experienced by the United States in
Nataly [62]

Answer: primarily cyclical deficit

Explanation:

Budget deficit occurs when the government expenditure for a certain year is more than the revenue the government makes.

Since the the United States economy was operating close to potential. The budget deficit experienced by the United States in 1969 was primarily cyclical deficit.

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3 years ago
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viva [34]

Answer:

Go to the Sign in page, which you can access by selecting "Sign In / Register" in the top right corner of our homepage.

Select "Create Account," then enter your e-mail address, a password, and — if you're a member — the number found on your membership card. If you happen to have a Costco Anywhere Visa® Card by Citi, just look for your membership number on the back of the card, directly to the right of your picture.

Once you select the "Create Account" button, your account will be created.

Please keep in mind that being an active Costco member does not automatically register you on Costco.com. Your membership number is not linked to your account until you add it, either when you register or you update your account details under "My Account."

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2 years ago
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