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WINSTONCH [101]
3 years ago
7

Suppose the governments of two different economies, economy A and economy B, implement a permanent tax cut of the same size. Inv

estment spending in economy A is more sensitive to changes in the interest rate than investment spending in economy B. The economies are identical in all other respects. The tax cut will have a smaller impact on aggregate demand in the economy with the
Business
1 answer:
timama [110]3 years ago
8 0

Available Options Are:

a) higher sensitivity to changes in the interest rate, or

b) lower sensitivity to changes in the interest rate

Answer:

Option A. Higher sensitivity to changes in the interest rate

Explanation:

The reason is that the tax cut will encourage foreign investment and this increase in Foreign Investment will increase the GDP but by small amount. However, the higher interest rate in an economy always raises additional money in an economy which companies invest to purchase the new GDP. Thus the GDP growth is highly sensitive to changes in interest rate.

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Crane Company acquired a tract of land containing an extractable natural resource. Crane is required by its purchase contract to
Fittoniya [83]

Answer:

$3.28 per ton

Explanation:

Total value = Land + Estimated restoration costs

                  = $7,440,000 + 1,440,000

                  = $8,880,000

Value for depletion = Total value - Salvage value

                                 = $8,880,000 - $940,000

                                 = $7,940,000

Per ton Depletion:

= Value for depletion ÷ Recoverable reserves

= $7,940,000 ÷ 2,420,000 tons

= $3.28 per ton

7 0
3 years ago
What effect might the government have on​ oligopolies? In​ oligopolies, the government might A. promote competition with a paten
fenix001 [56]

Answer:

C. impose barriers to entry with a​ copyright, which allows only the government to supply a good or service.

Explanation:

  • The oligopolies is a market or industry where there exist small but large sellers and hence form an market competition and hence lead to higher prices to the consumers. As they have their market structures. Entry barriers include high investment and strong consumer liabilities.'
  • Thus governments can set barriers to entry of these firm as to market only those goods and services that the government recommend fit for the sales
3 0
3 years ago
The Motorola team that developed the Razr cell phone was a good working team because they agreed on the objectives at hand and o
d1i1m1o1n [39]

Answer:

False

Explanation:

Groupthink is when a group of individuals reach a consensus without really weighing the matter, comsequences, or whether you can have other alternatives. Groupthink takes its cue from just desiring not to upset the balance of a group of people. This in no way does not describe the Motorola team that developed the Razr cell phone. They agreed on the objectives at hand and on the best approach to solve the problem.

6 0
3 years ago
Read 2 more answers
A project professional has just been assigned manager of a project to develop a new advertising campaign for an established prod
german

Answer:

<u>Establish project priorities</u>

Explanation:

<em>Remember</em>, we are told the project professional has been assigned to manage a project, therefore going by the guiding steps when defining a project, the next and second step he should take is to establish project priorities.

In other words, he should draft out what tasks should be done first, those for later, and so forth in other to successfully achieve/finish the project's objective.

4 0
3 years ago
The U.S. Securities and Exchange Commission periodically charges individuals with insider trading and claims those individuals h
Delicious77 [7]

Answer:

The correct answer is option d.

Explanation:

The effficent market hypothesis is an investment theory which advocates that the stock prices reflect all the available information. As a result, stocks are always traded at their fair value.

The strong form of efficient market says that stock prices reflect all information whether public or private.

This implies that investors cannot have more than normal profits. In the above example, the investors are able to make profit through insider information. This means that the market is less than strong form efficient.

6 0
4 years ago
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