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3 years ago

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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You are 30 years old today and are considering studying for an MBA. You just received your annual salary of $50,000 and expect i

Liono4ka [1.6K]

Answer:

Yes, you should take the MBA because the NPV of taking the MBA is positive.

Explanation:

the total economic costs of taking the MBA program include the lost wages + the costs of taking the MBA and any interest you could have earned by investing it on something else = ($50,000 x 1.03) + ($50,000 x 1.03²) + (2 x $30,000 x 1.08) = $51,500 + $53,045 + $64,800 = $169,345

the present value of your total economic costs:

$51,500/1.08 + $53,045/1.08² + $32,400/1.08 + $32,400/1.08² = $47,685.19 + $45,477.54 + $30,000 + $27,777.78 = $150,940.51

if you continued to work, your salary at year 3 would be $54,636.35 and it would continue to increase by 3% every year. The salary that you can earn with an MBA is $80,000 and it will grow by 4% per year. I used an excel spreadsheet to calculate future salaries and the differential amount between them. Then I calculated the PV at the beginning of year 3 of the differential income.

The PV of the differential income today = $560,281.31 /1.08³ = $444,769.38

the NPV of taking an MBA = $444,769.38 - $150,940.51 = $293,828.87

6 0

3 years ago

the united states imports a lot of cars, despite having its own auto industry. each of the following statements are arguments so

Kipish [7]

Automotive Industry

The automotive industry includes all companies and activities involved in the production of motor vehicles, including the majority of components such as engines and bodywork but omitting tyres, batteries, and fuel.

Main Content

a) Anti-dumping legislation will prohibit unfair competition:

For selling cars in the country, foreign corporations employ the dumping method. As a result, the United States should enact anti-dumping legislation to prevent unfair competition in its market. As a result, the price of foreign cars will rise, reducing demand for foreign cars in the United States.

b). Protection can aid the development of new enterprises:

To prevent foreign businesses from selling their hybrid electric automobiles at low prices in the US, the US should levy a substantial tax on these international electric vehicles. As a result, protection can aid in the development of infant industries and encourage the production and distribution of small scale industries in the market.

c) Job losses can result from foreign competition:

When an economy consumes a lot of imported goods, indigenous firms face stiff competition. Domestic manufacturers' products will be less in demand, resulting in reduced production, which will harm the manufacturer and, as a result, job losses and mass unemployment.

To learn more about Automotive Industry

brainly.com/question/6624034

#SPJ4

5 0

1 year ago

In a Fox News Poll conducted in October 2011, 904 registered voters nationwide answered the following question: "Do you think il

fiasKO [112]

Answer:

The correct answer is Option B .

Explanation:

As per the data given in the question,

Eligible for legal citizenship = 63%

Error = 3%

Level of confidence = 95%

Here, the CI is 63% ± 3% , which means 60% to 66% and this indicates that with 95% confidence, the true proportion lies between this interval

This is shown by option B

Hence, option B is correct answer

8 0

3 years ago

Hakim set goals for his store that included satisfying his customers while making enough money to open a second store. Which com

anyanavicka [17]

Hakim Goals

Explanation:

Hakim set goals for his store that included satisfying his customers while making enough money to open a second store. Which component of a goal did Hakim leave out :

1.Hakim didn't leave anything out.

2. Hakim forgot to include the overall strategy or course of action he would use to fulfill his mission.

3. Hakim forgot to include a time frame in which the goal is to be achieved.

4. Hakim forgot to include exactly how much profit he wanted to make.

5. Hakim forgot to include what his store's purpose and basic philosophy are.

4 0

3 years ago

Which of the following statements is TRUE? A. By INCREASING the number of payments per year, you BOOST your total cash outflow

dolphi86 [110]

B I’ve seen the question before

6 0

3 years ago