Answer: b. excess supply of money is equal to the quantity demanded of money at a given interest rate.
Explanation:
Equilibrium in the money market takes is usually achieved when the quantity of money demanded is equal to the quantity supplied. The demand curve for money is used to illustrate the quantity of money demanded at a given interest rate. The demand curve for money usually sloped downward, what this tells us is that people would want to hold less of their wealth in the form of physical cash ( money ). When the interest rates on bonds and other alternative investments are way higher.
<h3>Hello there!</h3>
Your question asks what comes after the period of recession in the business cycle.
<h3>Answer: D). Recovery</h3>
The reason why answer choice "D). Recovery" is correct because this comes after the period of recession in the business cycle.
Recession is like a "slow down" in the activity of a business. Which means that they aren't receiving any income, GDP, investments, and etc. This would cause a business to decrease while a lot of expenses that the business is getting are increasing. By expensive, I mean the cost to keep the business running and things of that sort.
Businesses go through a time of recession; therefore, they need to "recover" from that. And that's why recovery is the next stage. A business must recover from the "recession" period if they want to keep the business up and running. If the business doesn't recover, then the business will fail.
Once the business can recover from the recession period, then the business can succeed in their plans and execute them, while seeing the profits that they expected to make.
<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
A tax cut that will last for only a year will not have a huge effect on the aggregate demand as the aggregate demand increases only when the tax cut is permanent.
The given statement is false.
<h3>What is a tax?</h3>
A tax is a liability imposed on the taxpayer to pay a specified sum to the government based on the income they have earned in the previous year.
When the cutting of taxes becomes permanent in the country, then the citizens can start to acquire more which will increase the spending. The families will expect that the tax cuts are for the longer term which now induces them to buy and spend more and also act as an addition to their incomes. This whole impact would eventually lead to rising in aggregate demand.
Therefore, the demand increases when the tax cuts are permanent rather than when tax cuts are for only one year.
Learn more about the tax cut policies in the related link:
brainly.com/question/13924294
#SPJ1
Answer:
$120 billion
Explanation:
Economy operating at $300 billion above its natural level of output.
Marginal propensity to consume, MPC = 3/5 = 0.6
For closing this expansionary gap, the government have to decrease its spending by the amount calculated as follows:
Spending multiplier:
= 1/ (1 - MPC)
= 1/ (1 - 0.6)
= 1/ 0.4
= 2.5
Hence, the government spending reduces by
= Expansionary gap ÷ Spending multiplier
= $300 ÷ 2.5
= $120 billion
Answer:
The answer is: You need to identify your market.- Who are your potential customers and what unsatisfied need do they have in common?
Explanation:
A marketing concept can be defined as: The idea/concept/philosophy that your business is going to follow in order to satisfy their customers' needs while reaching their business's goals.
The first thing you need to do is identify your target market, i.e. Who are your potential customers and what unsatisfied need do they have in common?
