Answer:
The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable.
Explanation:
Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.
This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.
If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.
The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.
Answer:
d. $75,000
Explanation:
total Los Angeles Bay Area Central Valley
Revenues $750,000 $200,000 $235,000 $325,000
Variable exp. $410,000 $110,000 $120,000 $180,000
Controllable $210,000 $65,000 $75,000 $70,000
<u>fixed expenses </u>
controllable $130,000 $25,000 $40,000 <u>$75,000</u>
profit margin
Noncontrollable fixed expenses and common fixed expenses are not included in the calculation of individual controllable profit margin.
Answer:
$1,300,000
Explanation:
The computation of the total amount included in the translated balance sheet is shown below:
= Account receivable at current rate + account receivable, long term at current rate + inventories at current rate + goodwill at current rate
= $600,000 + $300000 + $180,000 + $220,000
= $1,300,000
We recorded at the current rate or lower value of current rate or historical rate but the goodwill is recorded at current rate
Answer: The quality and design of calculators improved dramatically from 2014 to 2016.
A new, safe method of memory enhancement became available for purchase.
As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library.
Explanation: If textbook price increases , it might overstate the inflation in cost of going to college.
A new safe memory enhancement will be costly because of it's superior quality and technological progress.
Similarly , new calculator will also be improved and superior.
<em><u>Thus, the survey will reflect higher prices,</u></em>
<em><u></u></em>
Interest, in a savings account, is calculated as a percentage of what you have saved.
A bank will let you know what percentage of interest they pay monthly on your savings account. Each bank can vary by what they pay in interest so it is important to do your research and search for a bank that gives an amount back that is suitable to you. Keeping your money in savings allows for interest to accrue at a faster rate.
