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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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The fiscal year-end 2016 financial statements for Walt Disney Co. report revenues of $55,632 million, net operating profit after
fredd [130]

Answer:

Option (C) is correct.

Explanation:

Given that,

Revenues = $55,632 million

Net operating profit after tax = $9,954 million

Net operating assets at fiscal year-end 2016 = $58,603 million

Net operating assets at fiscal year-end 2015 = $59,079 million

Net operating profit margin is determined by dividing the net operating profit after tax by the total amount of revenues during a fiscal year.

Net operating profit margin:

= (Net operating profit after tax ÷ Revenues) × 100

= ($9,954 ÷ $55,632) × 100

= 0.1789 × 100

= 17.89%

7 0
3 years ago
A Michigan State University student spends his summer months in his hometown, where he works for a local micro-brewery during th
murzikaleks [220]

Answer: Expectancy theory

Explanation:

The theory that suggests that the student will only work as hard as necessary to earn a "C" grade is the expectancy theory.

Expectancy theory states that an individual will act in a particular way due to the fact of what they believe will be the result of the behavior that they selected and thereby will select a particular behavior above orhers.

Here, the student simply selects his work above the school grade because he believes that a C is enough for him. Therefore, the answer will be expectancy theory.

6 0
2 years ago
ANSWER ONLY IF YOU KNOW
leva [86]
Answer:
True

Monetary policy is the control of the quantity of money available in an economy and the channels by which new money is supplied
3 0
2 years ago
The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder
tigry1 [53]

Answer:

The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.

This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).

The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.

This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.

When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.

When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.

Explanation:

8 0
3 years ago
A graph titled Change in U S Unemployment and Inflation from 1971 to 2001 has the year on the x-axis and percentage change on th
disa [49]

Answer:

falling unemployment and rising inflation.

Explanation:

Stagflation means that both the inflation and unemployment rate are rising. Before the 1970s, classical economists stated that an inverse relationship existed between the inflation rate and the unemployment rate. This means that when the inflation rate was increasing, the unemployment rate should be decreasing. But reality does not follow theoretical rules.

5 0
3 years ago
Read 2 more answers
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