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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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the body that determines how taxes will be used to support schools, what will or will not be taught, and the length of the schoo
DerKrebs [107]

The body that determines how taxes will be used to support schools, what will or will not be taught, and the length of the school day and year is the .  <u>state legislature.</u>

<u></u>

State Legislature is the frame that determines how taxes will be used to aid colleges, what is going to or will no longer learn, and the length of the college day and year.

The protection and control of public schools is essentially the duty of the state legislature. The formation, choice, and manage of the curricula, educational techniques, and substances used in schools are all relatively prompted with the aid of the states.

Learn more about State Legislature here:-brainly.com/question/24315255

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5 0
11 months ago
A customer invests 50000. 10 years later, the investment is worth 100000. the customers annual compouned rate of return is?
9966 [12]

<u>Answer:</u> The rate of interest is 7.18 %

<u>Explanation:</u>

To calculate the rate of interest, we use the equation used for the interest compounded monthly follows:

A=P(1+\frac{R}{n})^{nT}

A = Amount after time period 'T' = $100,000

P = Principal amount = $50,000

R = rate of interest = ?

n = Number of times interest applied per time period = 1   (annually)

T = time period = 10 years

Putting values in above equation, we get:

100,000=50,000(1+\frac{R}{1})^{1\times 10}\\\\R=0.0718

Calculating the rate of interest in percentage:

\Rightarrow R\times 100=0.0718\times 100=7.18\%

Hence, the rate of interest is 7.18 %

7 0
3 years ago
Killian has designed a new board game for kids. His company is now figuring out who the target market is going to be and where t
VashaNatasha [74]

The correct answer is product development.

In the product development stage the company will work on things like the positioning and marketing of the new board game. Their goal is to create a need for the game and make people want to buy it.

7 0
3 years ago
What will increase the current value of a stock?
GrogVix [38]
Increase in capital gains yield
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3 years ago
Physical or mental injuries caused by a crime are known as what?
maksim [4K]
Assault and battery because Battery is a criminal offense involving the unlawful physical acting upon a threat, distinct from assault which is the act of creating apprehension of such contact. In the United States, criminal battery, or simply battery, is the use of force against another, resulting in harmful, offensive or sexual contact.
5 0
3 years ago
Read 2 more answers
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