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3 years ago

Which of the following fiscal policy action would cause the economy to contract?

1 answer:

4 0

This is a tricky question, because most of the answers provided are correct. For instance, by raising taxes, the government drops down the demand rates, as well as by decreasing the money supply (in that case, it also prevents economy from falling into an inflating situation). As for balancing the budget, this economical move entails decreasing the public expenditure and, therefore, contracting the demanding economical figures too.

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Company X's current assets increased by $40 million from 2007 to 2008, while the company's current liabilities increased by $25

Virty [35]

Answer:

b. An increase of $15 million

Explanation:

The computation of the cash impact of the change in working capital is shown below:

As we know that

Working capital = Current assets - current liabilities

So, the change in working capital is

= Increase in current assets - increased in current liabilities

= $40 million - $25 million

= $15 million

Hence, the b option is correct

7 0

3 years ago

Since lower-income people spend a larger proportion of their incomes on groceries than do higher-income people, if grocery store

Mamont248 [21]

Answer:

d. regressive tax.

Explanation:

Because as we can see on the given statements that lower income people come to buy grocery than the higher income people, so the 10-cent fee for disposable bags will come under regressive tax, as we know that regressive tax is a tax in which is taken or collected largely from the lower income people than the higher income people.

So, the correct option will be OPTION (d).

6 0

3 years ago

20. The consumer price index was 120 in 2013 and 126 in 2014. The nominal interest rate during this period was 8 percent. What w

Stella [2.4K]

Answer: 3%

Explanation:

To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:

= [(126-120)/120] × 100

= 6/120 × 100

= 5%

Real interest rate will now be:

= Nominal Rate - Inflation Rate

= 8% - 5%

= 3%

5 0

3 years ago

Zumba classes sell all 20 participant spots at a price of $4.50 each. When the instructor raised the prices to $5.50, 10 people

Ugo [173]

Answer:

Zumba classes sell all 20 participant spots at a price of $4.50 each. When the instructor raised the prices to $5.50, 10 people attended the class. From the midpoint method, the price elasticity of demand for Zumba is:

0.286

Explanation:

20 at $4.50= $90

10 at $5.50= $55

price elasticity= change in quantity demand/ change in price

20-10= 10 change in quantity demand

$90-$55= $35

10/35=0.286

8 0

3 years ago

The __________ is the combination of media used and the frequency of advertising in each medium. Question 34 options: media plan

Kryger [21]

The media mix is the combination of media used and the frequency of advertising in each medium.

5 0

3 years ago