Answer:
The answer is D) will raise disposable income and raise spending
Explanation:
When taxes are cut disposable income increases as there is less income used to pay taxes. If there is a higher amount of disposable income available then spending will increase as well as spending appetite.
Cutting taxes is a easy way to stimulate spending in an economy.
The correct answer is therefore D) will raise disposable income and raise spending.
Cutting taxes can also increase aggregate demand which can lead to higher economic growth as well.
$42.25
- trade prices that are shown on the tape DO NOT include commission.
Answer: False
Explanation:
The real interest rate is the nominal interest rate adjusted for inflation.
If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.
For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:
= 8 - 4 = 4%
If inflation is instead 2%, real rate would be:
= 8 - 2 = 6%
Real rate would be higher than anticipated.
Answer:
C. phase out all trade and tariff barriers among Canada, Mexico, and the U.S
Explanation:
The North American Free Trade Agreement (NAFTA)
This agreement creates a bloc of trade for the region, Canada, Mexico and the US.
As state on "C" It result in the elimination or reduction of barriers to trade and investment between the countries.
It will be replaced in the following year by the United States–Mexico–Canada Agreement (USMCA)
But NAFTA will keep working until this new agreement is finished.
