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Ivan
3 years ago
7

Fiscal stimulus to aid recovery from a recession will be most effective in the long run if______________ it can be reversed as t

he business cycle approaches the next peak. it begins gradually and increases as the economy approaches full employment. it is accompanied by tight monetary policy from the central bank. the effective fiscal multiplier is low enough to guarantee a strong crowding-out effect.
Business
1 answer:
12345 [234]3 years ago
3 0

Answer:

it can be reversed as the business cycle approaches the next peak.

Explanation:

The government should do as Josua stated millenia ago:

save in the seven good years to spend in the seven bad years.

The fiscal stimulus is good when there is no crowingout effect that is, the use of resource from the government do not compite with private demand. hat is true in recession. But; it is precisely what occurs at peak or near full employement. In that scenario the government should decrease their stimulus to aggregate demadn as will only be inflationary

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On the first day of the fiscal year, a company issues an $7,500,000, 8%, five-year bond that pays semiannual interest of $300,00
Sav [38]

Answer:

$7,500,000 in 8% bonds, 5 years to maturity, semiannual coupon ($300,000)

sold at premium for $7,740,000

the journal entry to record the issuance should be:

Dr Cash 7,740,000

    Cr Bonds payable 7,500,000

    Cr Bond premium 240,000

<u>Using the straight line amortization:</u>

amortization per coupon payment = $240,000 / 10 coupons = $24,000

Dr Interest expense 276,000

Dr Bond premium 24,000

    Cr Cash 300,000

5 0
3 years ago
Does the firm need to alter its choices of C and L to decrease​ cost? A. ​Yes, they need to increase Upper Lincrease L which wou
kherson [118]

Answer:

Yes, they need to increase Upper L which would cause MP Subscript Upper L to decrease and MP Subscript Upper C to increase.

Explanation:

In the specific problem outlined above, the company wants to maximize its revenue and ensure that the production cost is as low as possible for the given quantity of land, cement and the available labor. In order to ensure that this is possible, the company must try to increase the upper L so that there would be an increase in MP (subscript upper C) and a decrease in MP (subscript upper L).

4 0
3 years ago
An outside supplier has offered to provide Maxter Corp with the 10,000 subcomponents at a $65 per unit price. If Maxter Corp acc
Irina18 [472]

Answer:

Option b ($150,000 decrease) is the correct answer.

Explanation:

Given:

Fixed manufacturing overhead,

= $65

Units,

= 10,000

According to the question,

Current cost is:

= 70\times 10,000

= 700,000 ($)

The expected cost will be:

= Fixed \ manufacturing \ overhead+(Units\times Purchase \ price)

By substituting the values, we get

= (65\times 10000)+200000

= 650000+200000

= 850000

then,

= 850000-700000

= 150000 ($)

Thus the above is the right answer.

3 0
3 years ago
Based on the information below, what is the firm's optimal capital structure? a. Debt = 40%; Equity = 60%; EPS = $2.95; Stock pr
Ronch [10]

Answer:

The optimal capital structure is 60% debt and 40% equity.

The correct answer is C

Explanation:

Optimal capital structure is a debt-equity mix that maximizes the stock price. Option C is a debt-equity mix that maximizes the stock price of the company.

7 0
2 years ago
Who would be eligible for a 403b account?
Kamila [148]

The correct answer on Gradpoint is a government employee

3 0
3 years ago
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