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PIT_PIT [208]
3 years ago
5

An automatic stabilizer: A. extracts money from the economy during recessions. B. is exemplified by a program such as unemployme

nt compensation. C. injects money into the economy during booms. D. is exemplified by a program such as the Corps of Engineers dam-building program.
Business
1 answer:
GREYUIT [131]3 years ago
6 0

Answer:

B) Exemplified by a program such as unemployment compensation.

Explanation:

Automatic stabilizer is an example of fiscal policy that result automatically and tend to offset fluctuations in economic activity without direct intervention from the policymakers.

They are used to stabilize the economy.

Automatic stabilizer could be referred to as economy stabilizer

Examples are;

Tax reduction and spending more of government during recession

Increase of tax during booms

Extract money from the economy during booms

Unemployment compensation, unemployment insurance and welfare.

Automatic stabilizers are features of the tax and transfer systems that temper the economy when it overheats and stimulate the economy when it slumps, without direct intervention by policy makers.

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A stock has a beta of 1.16, the expected return on the market is 12 percent, and the risk-free rate is 3.5 percent. What must th
Anika [276]

Answer:

13.36%

Explanation:

R = Rf + B(Rm - Rf)

where,

Rf= risk free return

B= beta

Rm= Market rate of return

Rm-Rf= Risk premium

4 0
3 years ago
What is Eduloan and is it a good choice is it affordable...Why should we choose Eduloan and how does it work
Gekata [30.6K]
Yes it is affordable however I don’t know what eduloan is
6 0
3 years ago
Historical data shows that during the recession of 1990–1991, the natural rate of unemployment was about 5.9% while the actual u
zmey [24]

Answer:

a. The actual unemployment rate was higher during the recession of 1990-1991, but cyclical unemployment was higher in 2001.

Explanation:

Unemployment is defined as the number of people in a population that are willing to work and seeking for jobs but do not have employment.

Natural unemployment is defined as the normal process of leaving jobs and getting jobs in a situation when there is full employment.

Cyclical unemployment is created by recessions and booms.

Actual unemployment = Natural rate + Cyclical rate

Cyclical unemployment= Actual rate - Natural rate

In the first economy

Cyclical rate = 7 - 5.9= 1.1%

In the second economy

Cyclical rate= 6 - 4.8= 1.2%

So actual unemployment was 7% in 1990-1991 while in 2001 it was 6%

Cyclical unemployment was 1.1% in 1990-1991, while cyclical unemployment was 1.2%

6 0
3 years ago
Read 2 more answers
Hancock Inc. retains most of its earnings. The company currently has earnings per share of $11. Hancock expects its earnings to
monitta

Answer:

D1 = $3.50

D2 = $3.50

D3 = $3.50

Ke = 10% = 0.1

Po = <u>D1</u> +     <u>D2</u> +      <u>D3 </u>

      (1+ke)   (1+ke)2   (1+ke)3

Po = <u>$3.50</u> +   <u>$3.50</u>  + <u>$3.50 </u>

        (1+0.1)      (1+0.1)2  (1+0.1)3

Po = $3.18    +  $2.89  + $2.63

Po = $8.70

None of the above

Explanation:

In this scenario, we need to discount the dividend in each year by the required at rate of return of 10%. The aggregate of the price obtained as a result of discounting in year 1 to year 3 gives the current market price.

7 0
4 years ago
a company has net sales of $126,000, cost of goods sold of $72,000, operating expenses of $38,000, and other expenses of $3,000.
earnstyle [38]

Answer:

$13,000

Explanation:

Net income= net sales -net expenditure

in this case:

net sales=$126,000

net expenses =  $113,000 {COGS + operating exp.+other exp.}

Net income= $126,000-$113,000

                    =$13,000

3 0
3 years ago
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