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Alenkasestr [34]
3 years ago
10

The federal government tends to increase their spending to get the economy out of recessions. Explain the expected impact on eac

h of the components of aggregate demand due to this and the mechanism through which this operates.
Business
1 answer:
RoseWind [281]3 years ago
4 0

Answer:

Aggregate demand (AD) refers to the total demand for goods and services in an economy in an economy at a given price level.

Components of Aggregate Demand (AD); Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M).

During the recession, the government can affect aggregate demand by increasing their fiscal expenditures and reduce taxation which is known as Fiscal policy.

Expansionary fiscal policy affects aggregate demand through an increase in government spending and a reduction in taxation. Those factors influence employment and increase household income, which then impacts consumer spending and investment

Fiscal policy determines government spending and tax rates. Expansionary fiscal policy, usually enacted in response to recessions or employment shocks, increases government spending in areas such as infrastructure, education, and unemployment benefits.

Explanation:

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Answer:

The correct option is C. which is <em>assess how long a company with positive cash flows from financing activities can continue to operate</em>

Explanation:

<em>The ratio of cash to monthly cash expenses can be used to make assessment of a company whether how long it can determine without additional financing and positive cash flows generated from operations.</em>

The formula of The ratio of cash to monthly cash expenses

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3 0
3 years ago
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gogolik [260]

The correct statement is that in the <u>spreadsheet </u>below, a <u>financial plan</u> for<u> </u><u>protecting assets </u>is missing. So, the correct option is C.

A financial plan for protection of assets seems to be missing, as there is no payment of premium of insurances in cash outflow columns.

<h3>Financial Plan </h3>

A financial plan refers to as the estimation and strategy making of the cash flows that an individual or an organization is to manage.

In the example above, it can be seen that there are a lot of cash outflows, but not a single dollar is spent on protecting the assets by way of payment of insurance premium.

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Hence, the correct option is C that in the spreadsheet below, a financial plan for protecting assets is missing as there is no payment towards insurance premiums in the cash outflows.

Learn more about Financial Plan here:

brainly.com/question/1323646

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I believe the answer is -A!



Have a Warm and Wonderful Day!!
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