Answer:
True
Explanation:
This is the case because tax cuts and government spending are instruments that could be used in expansionary fiscal policy.
Note that reduced taxes usually have a direct impact on the disposable income of a economy not the composition of labor demand. Tax cuts leads directly to consumption and savings increase, resulting from increase in disposable income in the economy.
Answer:
The correct answer is letter "C": investment revenue in cash.
Explanation:
Cash flows from investing activities are portrayed in the Cash Flow Statement indicating the amount o cash that was generated or spent from investment-related activities of the company. Usually, <em>cash payments to acquire physical assets, receipts from the sale of intangible assets, cash payments or receipts for the sale of bonds or shares of other companies, </em>and <em>cash payments in the form of loans</em> are considered in the cash flows from investing activities.
<em>According to the U.S. Generally Accepted Accounting Principles (GAAP), investment revenue in cash is reported as an inflow from operating activities.</em>
Answer:
Self Interest & Invisible Hand of Laissez Faire Policy
Explanation:
Adam Smith Laissez Faire Policy - suggests that free markets are the best approach for welfare maximisation of a society, based on self interest guiding best decisions by individuals, and individual wealth & welfare maximisation implies society wealth & welfare maximisation.
The Invisible Hand of free markets corrects all the discrepancies (if any), re-guides self interest forming the basis of over all social interest. Government intervention is unnecessary & distortionary as per the theory
The model shows that households earn money when <u>Firms </u>purchase <u>Factors </u>in factor markets.
<h3>Interaction between the Household and a Firm </h3>
- Households buy goods from firms thereby passing income to firms.
- Firms buy labor from households.
Households therefore earn an income when firms decide to go to the factor market and buy a factor such as labor from households.
In conclusions, households and firms are interconnected.
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