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slava [35]
3 years ago
6

Assume the economy is at full employment but planned investment exceeds saving. Other things being equal, what fiscal policy act

ions would best address this problem?
Business
1 answer:
Scrat [10]3 years ago
3 0

Answer:

Increase taxes and decrease government spending

Explanation:

Fiscal policy is used to bring an economy back to normal.

When the economy is at full investment and planned investment is greater than savings, the best policy action would be to Increase taxes and decrease government spending. By increasing taxes there would be a fall in disposable income and household spending would decrease.

Changes in fiscal policy has effects on GDP, unemployment, and inflation. In this question this would be contractionary fiscal policy. Aggregate demand would fall and there would be lower output, lower employment and lower price level

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Mr. Jacob, who is terminally ill, writes a will transferring all his assets to his daughter Silvia, in the event of his death. T
Anit [1.1K]

Answer:

Invalid

Explanation:

Since it is stated in the will, that upon his death should the assets be transferred, it means that Silvia doesn't get anything until Mr Jacob ceases to be alive.

With the new development as regards Mr Jacob living for 6 more months before dying, Silvia has no assets yet and as such cannot transfer anything to Jacob Jnr.

Cheers

8 0
3 years ago
In a(n) contract, the seller guarantees to sell 100 percent of its goods to one buyer, and the buyer agrees to accept the entire
Sonja [21]

Answer:

Output; Is

In a(n) <u>output</u> contract, the seller guarantees to sell 100 percent of its goods to one buyer, and the buyer agrees to accept the entire quantity. In a(n) contract, the buyer agrees to purchase 100 percent of its goods from one seller. These kinds of contracts <u>is</u> enforceable under the UCC.

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3 years ago
What is the role of the entrepreneur in the modern economy? ​
DIA [1.3K]

Answer:

Entrepreneurs occupy a central position in a market economy. For it's the entrepreneurs who serve as the spark plug in the economy's engine, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct.

Explanation:

7 0
3 years ago
A corporation with both preferred stock and common stock outstanding has a substantial credit balance in its retained earnings a
german

Answer:

Profit re-investments, purchase of another company, financial troubles

Explanation:

The first reasons could be that the company wants to reinvest its profit after it pays out dividends on preferred stocks or in other words if it wants to finance its future growth. Another reasons could be that the company has decided to withhold some of its earnings for future acquisitions. Third possible reason could be that the company wants to defer the payments on common stock for some time.

4 0
3 years ago
GDP includes a. final goods and inventories of imported intermediate goods. b. intermediate and final goods to count all goods a
Elina [12.6K]

Answer: c. only final goods to avoid double counting when including intermediate goods

Explanation:

The Gross Domestic Product (GDP) is an economic measure that aims to quantify the strength of an economy by checking it's Economic Activity.

When Calculating GDP, the FINAL value of goods and services produced WITHIN a country are the only amounts included to avoid Double Counting of products.

For example, if in making a television, the company making the TV bought electrical parts for $100 and the LED screen for $50 with labour costs of $50 and then sold it to a store for $300 that then sells the Television at $500, $500 is the amount that is included in GDP calculation. None of those other figures will be added again because they are already implicitly included in the final $500.

6 0
3 years ago
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