Answer:
the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
Explanation:
A political business cycle can be defined as a business cycle that typically arises from the manipulation and tweaking of economic policy tools such as fiscal policy and monetary policy by incumbent (serving) politicians, in order to stimulate and enhance the economy of a particular country before an election. Thus, this would go a long way to boost the chances of the candidate representing the particular political party and reelection into office by the people.
Hence, the political business cycle refers to the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
The Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
Additionally, Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being such as Real GDP.
Answer:
True
Explanation:
Banks use a type of check used to pay bills or make payments for which the money is guaranteed
Answer:
the best way to compare the output in quantities over a period of times will be (D) real GDP.
this is becasue real GDP is calculated by adjusting for the changes in prices, therefore it does not contain any changes in the prices and only reflects the increase or decrease of the output quantities.
Explanation:
Answer:
the correct answer is D
D. If the end result from the second column is not 3, then the sum of the
numbers in the first column equal to the sum of the numbers in the
second column.
Explanation:
since e are given the first column operation of the numbers. The operational process is repeated on the number of the second column we can then conclude by choosing option <em>D if the end result from the second column is not 3, then the sum of the
numbers in the first column is equal to the sum of the numbers in the
</em>
<em>second column.</em>
Answer:
The nominal interest rate which the bank will offer is of 10.24%
Explanation:
according to Irwin formula the bank will charge a nominal rate that ensures a real rate of 6% thus:


1.06*1.04-1 = 0.1024 = 10.24%