1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
qaws [65]
2 years ago
9

"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth.

" Does this policy directive follow from the short-run or the long-run framework? Short-run framework. The short-run framework directs one to avoid deficits; in the long-run framework deficits are useful if the economy is significantly below potential. Neither. Deficits are offset by an increase in private saving and do not lead to lower growth in the long-run or the short-run framework. Long-run framework. The long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential. Both. Deficits reduce saving and lead to lower growth in the long-run and the short-run framework.
Business
1 answer:
bixtya [17]2 years ago
5 0

Answer:

the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.

Explanation:

"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." This policy directive follow the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.

<u>The reason is that in the short-run, deficits offer economic solutions by being an antidote to recessions, hence they could be a strategy of recession management in the short run</u>

<u>However in the long-run, deficits are not advisable as they could lead to debts because the major way to manage such deficits is by external borrowings. </u>

<u />

You might be interested in
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,00
hichkok12 [17]

Answer:

O Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000.

Explanation:

Dividend declared = $0.5 per share

Total Authorized shares = 20,000 shares

Total Issued Shares = 9,000 shares

Total Outstanding shares = 8,000 shares

As outstanding shares are only eligible shares for the dividend payment.

Total Dividend Payment = $0.5 per share x 8000 shares

Total Dividend Payment = $4000

Journal Entry for this event

                                 Dr.             Cr.

Retained Earning    $4,000

Common Dividend Payable   $4,000

8 0
3 years ago
When a business establishes a web-site and begins to allow customers to place orders online without ever coming into their store
Gwar [14]

Answer: technological environment

Explanation:

With the scenario explained in the question, the business is responding to changes in the technological environment.

Technological environment has to do with the environment that relates to how science and technology has brought Improvement into businesses. This can be seen in the scenario explained in the question.

4 0
2 years ago
Bob used to earn $40,000 per year in his job as a nurse, but he quit in order to open his own pizza shop. bob used $10,000 from
Darya [45]
For his first year of business, Bob’s accounting profit was $5,000 (5,000 = 80,000-67,000-4%*200,000), and his economic loss was $35,000 (-35,000 = 5,000 - 40,000) based on the information shown on the question above. The accounting profit is a recorded profit based on every business transaction occurring in a one-year period. The economic profit (loss) is a difference between a revenue and its opportunity cost.
6 0
3 years ago
Under _________dividend reinvestment plan, the company gives any cash dividends that investors would have received in a bank, wh
ankoles [38]

Answer:

Old Stock

Explanation:

The Dividend Reinvestment Plan is a platform where investors or shareholders in a company, reinvest the dividends they gained into more shares sold by the same company, most times without having to pay commissions.

Under the <em>Old stock dividend reinvestment plan, </em>an outside trustee, that is, a member of the board who is not an officer in the company, repurchases the company's existing shares in the stock market and then allocates the shares purchased among the stockholders. They sell the shares at market price. Most times, in order to encourage shareholders participation the company making the repurchase takes care of the commission fees.

8 0
3 years ago
Why is compounding interest monthly better than yearly ?
dalvyx [7]

Answer:

More interest payments on yearly computing.

Explanation:

It is generally said that if you can get monthly annual payments compared to yearly payments take it without a thought. This statement explains a lot; normally month payments are not available, but in some case they are. In annual payments, 12 months are compounded that is why it is higher rate compared to monthly. So, monthly payments are preferred

6 0
3 years ago
Other questions:
  • The median yearly counts of alligator attacks must be
    7·1 answer
  • Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innova
    8·1 answer
  • The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the
    9·1 answer
  • Office Depot has instituted the Office Depot Advantage, a program in which a customer who spends a minimum of $200 up to $299 in
    10·1 answer
  • When Dianna does not know the outcome of each alternative until she has actually chosen that alternative, she is facing conditio
    13·1 answer
  • What are the opportunity offers by<br>vocational education?​
    5·1 answer
  • The availability of a commodity is referred to as its
    13·1 answer
  • Allison wants to automate one of its production processes. The new equipment will cost $90,000. In addition, Jupiter will incur
    8·1 answer
  • The west coast of scotland has a warmer and more stable climate than areas at equal latitudes but further inland. It is also muc
    12·1 answer
  • determine which statement below about economics is true. economics studies decision-making processes. macroeconomics studies the
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!