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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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$154,900

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8 0
3 years ago
Suppose the lead time is 3 operating days, and that the superstore wishes to maintain instock probability of 90%. The demand in
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The same is to be considered and relevant too

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3 years ago
Cash flow to stockholders must be positive when: both the cash flow to assets and the cash flow to creditors are positive. the n
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hope this helps
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