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3 years ago

The price of imported oil rises. If the government wanted to stabilize output, which of the following could it do?

Business

2 answers:

tankabanditka [31]3 years ago

8 0

Answer:

The correct answer is letter "A": increase government expenditures or increase the money supply.

Explanation:

Fiscal policy refers to the joint governmental decisions concerning taxation and spending of a nation. The term was coined by the British economist John Maynard Keynes (1883-1946) who claimed that governments could control rates of macroeconomic growth by raising the rate of employment, battling inflation and flattening business cycles.

Whether increasing government expenses or money supply, the overall economy will be balanced as long as the prices are going up as well.

Ber [7]3 years ago

6 0

Answer:

b. increase government expenditures or decrease the money supply

Explanation:

If the government wanted to stabilize output, there are a couple of levers they could pull. These are fiscal policies and monetary policies, fiscal policy, is all about changing how much we spend, if government has more money to spend, they can better negotiate and also decide how money is spent to a degree. So, the theory is if the government spends more, that would increase total output. The second lever to pull is messing with the money supply, monetary policy, If maybe there's more money out there, lower interest rates, it might increase output however because we are dealing with the price of imported oil decreasing the money supply would be the move to make because by decreasing the money supply we can make our currency more valuable, it's important to remember that the price of imported oil would not be affected by domestic monetary policies. If the money supply were increased our currency would devalue which would be counterproductive because a weaker currency means we pay more for imports.

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Answer:

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2 years ago

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Explanation:

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3 years ago

This is the same as productivity, as it is quantity of goods or services produced in a given period, by a firm, industry, or cou

Kryger [21]

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2 years ago

Read 2 more answers

Which of these statements is true? Group of answer choices

Thepotemich [5.8K]

Answer:

In general, the higher the total asset turnover and the lower the capital intensity ratio, the more efficient the overall asset management of the firm will be.

Explanation:

Asset Turnover = Net Sales / Total Asset

Capital Intensity = Total Asset / Net Sales

According to the above formulas most efficient situation will be to increase the asset turnover and decrease the capital intesity ratio because they are reciprocal to each other, so thses will behave inversly with each other. Higher turnover means the higher sales using total asset and lower capital intensity ratio means asset are lower timesto the net sales which is an efficient use of asset.

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3 years ago

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tensa zangetsu [6.8K]

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