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zzz [600]
2 years ago
11

Suppose the government purposely changes the economy's cyclically adjusted budget from a deficit of 0 percent of real GDP to a d

eficit of 3 percent of real GDP.The government is engagingin a(n)
A. expansionary fiscal policy.
B. contractionary fiscal policy.
C. neutral fiscal policy.
D. low-interest-rate policy.
Business
1 answer:
ExtremeBDS [4]2 years ago
7 0

Answer:

(b) Contractionary fiscal policy.

Explanation:

Correct word for the given statement is  contractionary fiscal policy.

Contractionary fiscal policy is a type of monetary approach that includes expanding charges, diminishing government uses or both so as to battle inflationary weights.  

Because of an expansion in charges, family units have less transfer salary to spend. Lower transfer pay diminishes utilization.

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Hodgkiss corporation is evaluating an extra dividend versus a share repurchase. in either case, $27,000 would be spent. current
inn [45]

If extra dividend is given,

Dividend per share = Net income / Number of shares outstanding

Dividend per share = $ 27,000 / 4,500 shares

Dividend per share = $ 6 per share

Now. the price will reduce by $ 6 per share

Earnings per share will be $ 2.70 per share.

Price earnings ratio = New price / Earnings per share

Price earnings ratio = $ 96 - $ 6 / $ 2.70 = 33.33

If the shares were purchased from $ 27,000 -

Number of shares purchased = $ 27,000 / $ 96 = 281.25 or 281 shares

Total earnings = $ 2.70 X 4,500 shares = $ 12,150

New EPS = $ 12,150 / (4500 shares - 281 shares) = $ 2.88 per share

New Price earnings ratio = Price / Earnings per share

New Price earnings ratio = $ 96 / $ 2.88 = 33.33

8 0
3 years ago
Stocks have a 15% expected return and 25% risk bonds have a 8% expected return and 9% risk the expected return of ________.A por
Cerrena [4.2K]

Answer: 13.25%

Explanation:

The expected portfolio return can be calculated as follows:

= (Expected return of stocks * Weight of stocks) + (Expected return of bonds * Weight of bonds)

= (15% * 75%) + (8% * 25%)

= 11.25% + 2%

= 13.25%

5 0
3 years ago
If you purchase one coca-cola’s corporate bonds with a par value of $1000, and a coupon (interest rate) of 2.5% per year for 10
Tresset [83]

Answer:

$26000

Explanation:

P*(1+r*t)=

1000*(1+2.5 *10)=26000

8 0
3 years ago
Internal Controls for Bank Lending
julsineya [31]

Answer:

1. False

The higher the figure, the higher the risk. Kindly note that loans are usually insured against default. The higher the amount insured, the higher the premium payable as insurance on such amounts.

2. False

It does not make for good internal control to have one person regardless of their position to have the final say on loans of great magnitude such as $5 Million. This can quickly degenerate into a situation where the officer involved is tempted to abuse that power. It makes for good corporate governance and risk management to ensure that the board is responsible for loans of such magnitude.

3. True

If a bank lost $100 in a thousand places, from loan default, that translates to a loss of $100,000. This relatively is large however it is small and will have less impact that a loss of a million dollars in 3 places. That's $ 3,000,000.

As already indicated, it makes for good loan disbursement governance, to ensure that there is at least two persons involved in the risk acceptance criteria (RAC) evaluation and loan disbursement process.

4. False

Separation of duties is the foundation of good internal control. It allows for greater objectivity. It is also key to carefully select signatories to loan disbursements. They have to be people of impeccable character and the company must exercise proper risk management to ensure that every protocol such as opportunity that may create the impulse or inclination to breach policy is removed completely.

Cheers!

5 0
2 years ago
High taxes and/or heavy regulation:
makvit [3.9K]

Answer:

Correct option is c.

That is heavy cost and high regulations <u>raise cost of production so that the aggregate supply curve shifts to the left . </u>

Explanation:

Supply curse shifting towards left means there is decrease production efficiency .

  • TAXES MEANS it is the compulsory monetary payment which later get contributed in the state revenue .
  • REGULATIONS MEANS a set of rule which is maintained by a superior authority .
6 0
3 years ago
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