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3 years ago

A goal of monetary policy and fiscal policy is to

Business

1 answer:

ioda3 years ago

8 0

Answer:

B. Offset shifts in aggregate demand and thereby stabilize the economy.

Explanation:

Firstly about Fiscal Policy:

-Monitoring and influence of government to national economy by adjusting its spending levels and tax rates

-Based on the Keynesian economics which opines that the increasing or decreasing taxes or the same about public spending will impact significantly on the economy of the country.

-Fiscal Policy is the regulator of the inflation rate (2%-3% is normal for every economy) and in turn, this increase the rate of employment

Secondly about Monetary Policy:

- In most countries, central banks or central boards take the actions of plan about controlling process of the money in the country or money supplying estimations.

-Monetary policy is the management of money supply or the interest rates

-Monetary policy is the controlling of inflation, consumption, growth and liquidity of money

The mutual goals of these policies aim to establish and construct the perfect economic environment with the stable and positive growth of economy and, stable and low inflation rates. Moreover, the aim is the elimination of booms or fluctuations on the economy and to keep it stable as possible as.

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Two of the characteristics of useful information are: a. flexibility and durability. b. clarity and confidentiality. c. redundan

charle [14.2K]

Answer:

The answer is D.

<h3>Relevance and timeliness</h3>

6 0

3 years ago

The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At th

juin [17]

Answer:

The question is not complete:

Here is the complete question:

The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At the end of the year, pension benefits paid by the trustee were $21 million and there were no pension-related other comprehensive income accounts requiring amortization. The actuaries discount rate was 5%. The actual return on plan assets was $24 million although it was expected to be only $23 million.

What was the pension expense for the year?

Here is the answer: The pension expense is $25 million.

Explanation:

Pension is the form of defined benefit contribution plan which require employers to make certain periodic contribution on behalf of employees. This contribution is reported as an expense in the income statement if even though the benefit has not been enjoyed by the employees. To determine the value of this expenses to be included in the income statement, the components of the pension expenses are relevant.

Components of pension expense are service cost, interest cost, return on plan asset, amortization of prior service costs and gain or loss from change in asset value.

Here is the determination of the pension expense as required by the question.

$`M

Service cost 25

Interest ($460,000,000*5%) 23

Expected return on plan asset (23)

Amortization of prior service costs -

Gain or loss in change in value <u> -</u>

Pension expense <u> 25</u>

4 0

3 years ago

A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Proje

aliina [53]

Answer:

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.

Explanation:

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.

4 0

3 years ago

The use of debt in the firm's capital structure will increase ROE if the firm:_____.

DIA [1.3K]

Answer: c. earns a higher return than the rate paid on debt.

Explanation:

If the debt that the company incurs leads to the company making more money than they are paying as interest for the debt, then more money will be available as net income which would increase the Return on Equity.

ROE is calculated by dividing the Net Income by Shareholder equity. Interest is an expense. If this expense is lower then the increase in net income as a result of the debt then it follows that net income would increase and so would ROE.

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3 years ago

Which of the following would be considered an example of rent seeking? A. lobbyists securing spending policies that benefit thei

maks197457 [2]

I think the correct answer would be politicians trading favors that do not benefit the mass populace of voters. Rent seeking is a practice that involves the use of public policy in order to get benefit from it like increasing their benefits in the expense of other. This oftentimes done by a number of politicians.

4 0

3 years ago