Keynesian economics argues that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, Keynes held that governments should increase spending, even if it means going into debt.
Keynesian economics is a variety of macroeconomic theories and models of how aggregate demand significantly affects economic output and inflation. From a Keynesian perspective, aggregate demand does not necessarily match the economy's capacity. Instead, it is influenced by many factors that affect production, employment, and inflation.
Keynesian economists generally argue that aggregate demand is volatile and unstable, and as a result, market economies often experience inefficient macroeconomic consequences. They further argue that these economic fluctuations can be mitigated through coordinated economic policies between governments and central banks. Fiscal and monetary policy measures, in particular, help stabilize economic output, inflation, and unemployment throughout the business cycle. Keynesian economists generally advocate a regulated market economy. Although primarily the private sector, it plays an active role in government intervention during recessions.
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Answer:
neither
producer surplus
consumer surplus
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
The first scenario is neither a producer or consumer surplus because a transaction did not take place
The second scenario is a producer surplus.
the producer surplus = 60 - 55 = 5
The third scenario is a consumer surplus
consumer surplus = $114 - $107 = $7
Answer: 7.80%
Explanation:
At the end of 2016, Josh received a dividend of $1.37 and at the end of 2020, he received one of $1.85.
You can calculate the growth rate with the formula:
Dividend Growth Rate = (Dividend received at end of 2020/Dividend received at end of 2016) ^ (1/n) - 1
2016 to 2020 is 4 years.
Dividend growth rate = (1.85 / 1.37)¹/⁴ - 1
= 0.07798518
= 7.80%
The probability that you win something will be 1.
What is an probability in statistics?
The probability serves as a gauge for how likely an event is to occur. It gauges how likely an event is. P(E) = Number of Favorable Outcomes/Number of Total Outcomes is the formula for probability.
Can the probability of an event be 1?
If the chance is 1, the event will occur. There would be nothing you could do to prevent a road traffic collision if the likelihood of one was 1. It will occur. In reality, probability connected to commonplace events ranges between 0 and 1.
Can a probability be negative?
Although a quasiprobability distribution permits a negative probability or quasiprobability for some events, the probability of the result of an experiment can never be negative. These distributions may be applicable to conditional probability or unobservable events.
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Answer: d. The actual expected stock return indicates the stock is currently underpriced.
Explanation:
According to CAPM, the expected return is:
= Risk free rate + beta * (market return - risk free rate)
= 4.3% + 1.14 * (12.01% - 4.3%)
= 13.09%
The actual expected return is greater than the CAPM expected return.
This stock is underpriced because it is bringing in a higher return than CAPM predicted based on the market.
