Answer:
The choice of fiscal policy measures is between ___increased_____________ government spending and a ____decrease___________ in taxes. Since I am in favor of bigger government, I choose a(n) ____increase_____________ in ____governmental spending_____________.
Explanation:
Government employ two fiscal measures to drive the economy toward stability. They are taxation and government expenditure. Depending on the desired outcome and the prevailing circumstances, an increase in taxation reduces the propensity to consume, thus fueling increased savings and investments. Increased government expenditure galvanizes the economy to grow and the increased expenditure acts as a stimulus to economic activities. But fiscal policy measures are not used in isolation. They are complemented by monetary policies by the Federal Reserve.
Answer:
The correct answer is option a.
Explanation:
The price elasticity of demand shows the responsiveness of quantity demanded to change in price. It is measured by the ratio of proportionate change in quantity demanded and proportionate change in price.
Unit price elastic means that the price elasticity of the good is 1. This implies that the percentage change in quantity demanded must be equal to the percentage change in price.
I don't see a statement but if the investment was $210,000 and the future cash flows was $225,000 the net revenue would be 225,000-210,000 = 15000 and 15000/210,000=7.1% so the company's desired rate of return would not be met.
The factors that can impact the elasticity of demand are:
necessity versus luxury
availability of substitutes
<h3>What is the elasticity of demand?</h3>
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
The more close substitutes a good has, the more elastic its demand. This is because if price is increased, consumers can easily shift to the consumption of an alternative product.
Goods that are deemed as necessities usually have an inelastic demand. While goods that are deemed a luxury usually have elastic demand.
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