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sammy [17]
3 years ago
11

Which of the following statements is true in a capitalist economy?

Business
1 answer:
zepelin [54]3 years ago
6 0

The answer is: b. Markets motivate individual actors to make economic decisions.

In a capitalist economy, the government has very little influence to intervene in the economy. The market is solely controlled by the power of supply and demand. When a lot of people demanded a certain type of products, people who will gain the most profit would be those who are bale to make economic decisions to fulfill the demand in the market.

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When preparing her monthly budget, marge kent has a total spending allowance of $4,600. each month she pays $1,200 in rent, $60
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3 years ago
A two-step binomial tree is used to value an option on the Australian dollar (AUD). The strike price is 1.00 USD per AUD and the
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Answer:

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u = e0.06*square root of 0.25

u = 1.0305

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a = e0.025*0.25 = 1.0063

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p = 0.46

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3 0
3 years ago
Suppose that the federal administration plans to fight a deep, ongoing recession with a nationwide plan of increasing infrastruc
defon

Answer: Increase (+)

Explanation:

The Government component of the Aggregate Demand refers to money spent by the Government/ Public sector to provide certain needs for the economy such as Education, Defense and Healthcare.

When the government spends on infrastructural development such as the scenario described in the text, they are engaging in a form of spending known as Government Investment. This will increase the amount of G in the aggregate demand model.

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3 years ago
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