Government increases its spending when the economy is expanding, automatic stabilizers increase the government spending multiplier.
Automatic stabilizers offset fluctuations in economic interest without direct intervention by policymakers. when incomes are excessive, tax liabilities rise and eligibility for authorities blessings falls, with no trade in the tax code or other legislation.
All through a monetary increase, automated stabilizers enable the government to chill off expansion or even fight inflation. while earnings fall, the identical stabilizers can position cash returned in the machine by means of tax refunds, welfare assessments, and other strategies to permit huge quantities of government spending.
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Answer:
C. decreased by $40 billion
Explanation:
For computing the lending ability, first we have to determine the money multiplier which is shown below:
We know that
Money multiplier = 1 ÷ reserve ratio
= 1 ÷ 20%
= 5
So, the total cash would be
= $10 billion × $5
= $50 million
Now the lending ability would be
=$50 billion × (1 - 20%)
= $50 billion × 0.80
= $40 billion
Answer:
to get 5,00,000 australian dollar at the forward rate we are goign to need 4,704,000 US dollars
Explanation:
spot x (1 + (US rate - Australia rate) x time)
0.96 x (1+(0.03-0.05)x1 year) =
0.96 x 0.98 = 0.9408 forward exchange rate
$5,000,000 Australian Dollar * 0.9408 = 4,704,000 US dollars
Patronizing a store means helping it buy going there often, and basically buying things often and consequently giving it money..
Patronizing a little brother means behaving condescendingly towards, a kind of master-slave relationship... One should never do that...
Answer:
Mortgage Payable Table is prepared in an MS Excel file which is attached with this answer, please find it
Explanation:
The loan which is received by a person for purchase of real estate property or alternatively existing property owner to raise fund from the property. The mortgage are paid with interest over a specific period of time in installment of monthly quarterly semiannually or yearly.
Installment includes both principal payment and Interest Payment.
In this question The first payment on December 31, 2018 included
Total Payment = $37,092
Interest Payment = 385,000 x 5% = $19,250
Principal Payment = $37,092 - $19,250 = $17,842
