I would say that if the manager was consulted on the budget then he/she couldn't complain that it was unrealistic and impossible to meet and if they had any problems with it then they should have spoken up when the budget was being formulated.
Answer:
a. $1,600.
Explanation:
The computation of the amount of the dividend that should be paid to the preference shareholder in the second year is shown below:
Annual dividend is
= 1,500 shares × 7% × $10
= $1,050
Now the dividend that should be paid to the next year
= $1,050 + $1,050 - $500
= $1,600
Hence, the mount of the dividend that should be paid to the preference shareholder in the second year is $1,600
The combination of fiscal policy actions that would be most contractionary for an economy experiencing severe demand-pull inflation is an increase in taxes and decrease in government spending.
<h3>What is a
demand-pull inflation?</h3>
Basically, an inflation refers to a general rise in the price of goods in an economy. The demand-pull inflation causes am upward pressure on prices due to shortages in supply, a condition which the economists describe as "too many dollars chasing too few goods." As well, an increase in the aggregate demand can also lead to this type of inflation.
In Keynesian economics, the increase in an aggregate demand may be caused by a rise in employment, as companies need to hire more people to increase their output. A strict labor market means a higher wages, which translates into greater demand. The demand-pull inflation can be compared with cost-push inflation.
In conclusion, the appropriate fiscal policy for an economy experiencing severe demand-pull inflation are to reduce government expenditure, increase taxes, or implement both.
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