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Evgesh-ka [11]
3 years ago
9

Economists who believe in sound finance would say that in a recession, the government should:

Business
1 answer:
ZanzabumX [31]3 years ago
8 0

Answer:

The answer is: D) Maintain a balanced budget for political and moral reasons.

Explanation:

First of all, the Ricardian Equivalence Theorem is only hypothetically true with a lot of controversial assumptions and it has never been proven to work for extended periods of time. The notion that a government´s spending doesn´t affect people´s consumer and savings habits is not true.

Empirically whenever the government overspends and increases its deficit (usually by issuing bonds), savings from private citizens and companies tend to decrease.

The idea of sound finance tends to balance the government´s budget, not increase its deficit.

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Doing the right task is known in management as what
Tems11 [23]

Answer:

Doing the right task is known in management as performance.

Explanation:

Management ensures that the right tasks are performed by coordinating the various activities that help it to achieve goals.  It also plans the right tasks to be carried out in order to achieve set goals and objectives.  In doing all these, it also considers the cost and benefit to be incurred and derived respectively from executing its responsibilities.  Management is always interested in minimizing costs while maximizing benefits.  Management is also concerned with efficiency, by which it minimizes the wastage of resources (such as time, money, and efforts) and ensures optimum utilization of all its resources.

3 0
2 years ago
A standard "money demand" function used by macroeconomists has the form ln( ) = + ln( ) + m β , 0 β1 GDP β2R Where m is the quan
kvasek [131]

Answer:

1.The money demand will rise by 1.154%

2. The money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%

Explanation:

1. Money demand function

ln(m) = β0 +β1 ln(GDP)+β2R

Suppose β1 = 1.5 , β2 = −0.04 , GDP = $ 100 & R = 3%

ln(m) = 1.5 ln ($100) - 0.04 X 0.03

ln(m) = 6.91

m = 1002.247

Suppose the GDP increases by 1%; the new GDP will be = $ 101  

ln(m) = 1.5 ln ($101) - 0.04 X 0.03

ln(m) = 6.92

m = 1013.81

If the GDP increases by 1% ,the money demand will rise by 1.154%

2.

If the interest rate increases from 3% to 4%

ln(m) = 1.5 ln ($100) - 0.04 X 0.04  

ln(m) = 6.906155

m = $ 998.400

If the interest rate rises from 3% to 4% , the money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%

3 0
3 years ago
A healthy fast-casual restaurant that offers only vegetarian and vegan meals insists on portraying organic ingredients in its ad
Gelneren [198K]
The strategy that they use is <span>signaling value by targeting sophisticated buyers

This type of strategy could only work if the target market has specific preferences.
Even though the number of potential consumers for this market tend to be considerably small compared to another market, but the customers that obtained through this strategy tend to show higher level of loyalty.</span>
5 0
2 years ago
Oligopoly is a market structure that is characterized by a ________ number of ________ firms that produce ________ products.
vlabodo [156]

Answer: small, interdependent; identical or differentiated

Explanation:

This is from Economics 202.

4 0
2 years ago
Superstition Industries has a $2,000,000 asset investment and is subject to a 30% income tax rate. Cash inflows from the project
nekit [7.7K]

Answer:

12.25%

Explanation:

Calculation to determine what The company's after-tax accounting rate of return on this investment is:

Using this formula

After-tax accounting rate of return =Avarage income/Average investment

Let plug in the formula

After-tax accounting rate of return=($350,000*70%)/$2,000,000

(100%-30%=70%)

After-tax accounting rate of return=$245,000/$2,000,000

After-tax accounting rate of return=0.1225*100

After-tax accounting rate of return=12.25%

Therefore The company's after-tax accounting rate of return on this investment is:12.25%

6 0
3 years ago
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