1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex17521 [72]
3 years ago
6

The new classical critique of activist fiscal policy is theoretically different from the crowding-out critique. Crowding-out occ

urs when private spending __________ in response to government spending. Under the new classical critique, increased government spending leads people to __________ their current savings in order to help pay for higher taxes in the future.
A. decreases; decrease
B. increases; increase
C. decreases; increase
D. increases; decrease
Business
1 answer:
Alik [6]3 years ago
6 0

Answer:

C. decreases; increase

Explanation:

Although both the crowding-out critique and the classical critique both argue that more public spending (activist fiscal policy) will lead to less private spending (thus less-than-expected increase in demand for the economy to grow), the reasons they put forward are subtly different.

Crowding-out happens because government spending reduces the money supply (hence raise interest rate - the price of money) or investment opportunities to the private sector, making it <em>difficult for the private sector to spend</em> , hence there's less private spending.

The classical critique argues that because people anticipate that goverment will increase tax in the future to cover for the fiscal deficit, <em>they will save more to pay for tax</em>, also leading to less private spending.

You might be interested in
An important use of customer lifetime value data is: a. All of these are correct. b. as a replacement for market segmentation. c
maria [59]

          An important use of customers' lifetime value data (CLVD) is all of the options. Option A is correct.

<h3>What is customer lifetime value data?</h3>

Customer lifetime value (CLV) is amongst the most important metrics to measure as a component of a customer experience journey. Customer lifetime value (CLV) is a metric for determining how important a client is to your business, not just for a single transaction, but for the entire relationship.

It's a crucial measure since keeping existing customers costs less than acquiring new ones, thus boosting the quality of your existing customers is a fantastic method to generate growth.

Knowing the Customer lifetime value (CLV) may help organizations establish strategies for:

  • Acquiring new consumers and
  • Retaining existing ones,

While keeping profit margins intact.

Learn more about Customer lifetime value (CLV) here:

brainly.com/question/22684208

4 0
2 years ago
I need help on number 8 9 and 10 please help
elena55 [62]

Answer:

8. The opportunity cost is c. wearing the shoes

9. To gain the most satisfaction possible

10. A new toy is less exciting to a child with many toys

Explanation:

3 0
2 years ago
Which quality of an asset makes it more appropriate for the fair value principle rather than the historical cost principle?
Alchen [17]

Answer and Explanation:

Fair value refers to the current market price of the asset while historical cost is the cost at which the asset was acquired. Fair market value will always be higher than historical cost so it reflects the actual worth of the asset.

One of the qualities that makes valuing current assets at fair value rather than historical cost is the availability and reliability of current market price or fair value of current assets.

8 0
3 years ago
he following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending
Serhud [2]

Answer:

Purchases= $1,091,000

Explanation:

Giving the following information:

Beginning Raw materials inventory = $549,000

Ending Raw materials inventory= $612,000

The raw materials used in production= $1,028,000.

<u>To calculate the raw material purchased, we need to use the following formula:</u>

Purchases= production + ending inventory - beginning inventory

Purchases= 1,028,000 + 612,000 - 549,000

Purchases= $1,091,000

4 0
3 years ago
Q3. List three factors that are an impediment to traditional Barter System in papua New Guinea<br>​
Butoxors [25]

Answer:

The biggest challenge is PNG

4 0
2 years ago
Other questions:
  • Using a large value for order k in the moving averages method is effective in
    5·1 answer
  • You respond to a local lake where a diver complains of difficulty breathing that occurred immediately after rapidly ascending fr
    11·1 answer
  • If a company makes three entries into the cash receipts journal for cash received from customers paying on account of $500, $750
    10·2 answers
  • For higher levels of management, responsibility accounting reports:
    13·1 answer
  • Thornton Universal Sales' cost of goods sold (COGS) average $2,000,000 per month, and it keeps inventory equal to 50% of its mon
    7·1 answer
  • How do current events impact market performance and how does this influence policy decisions?
    8·1 answer
  • During the month of July, Clanton Industries issued a check in the amount of $767 to a supplier on account. The check did not cl
    13·1 answer
  • Beauty salon opportunities and threats
    10·1 answer
  • Problem 1, The following data pertain to a single department for the month of October for ABC Company.
    11·1 answer
  • A company purchased factory equipment on April 1, 2022 for $69600. It is estimated that the equipment will have a $12000 salvage
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!