Government increases its spending when the economy is expanding, automatic stabilizers increase the government spending multiplier.
Automatic stabilizers offset fluctuations in economic interest without direct intervention by policymakers. when incomes are excessive, tax liabilities rise and eligibility for authorities blessings falls, with no trade in the tax code or other legislation.
All through a monetary increase, automated stabilizers enable the government to chill off expansion or even fight inflation. while earnings fall, the identical stabilizers can position cash returned in the machine by means of tax refunds, welfare assessments, and other strategies to permit huge quantities of government spending.
Learn more about the government stabilizers here:brainly.com/question/25558588
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Answer:
Jones is liable to pay.
He is liable to pay to the tune of $1000. This may be negotiated however if it is not fair.
Explanation:
See the following points
- The question above is an example of Implied At-law contracts. (We will get to the definition of this in a bit).
- A contract is a legally binding agreement that recognises and governs the rights and duties of the parties to the agreement. A contract is legally enforceable because it meets the requirements and approval of<u> the Law</u>. From the above definition it is clear that two people may actually be engaging in a contract without knowing it.
- The law defines that a contract is.
- Contracts may be Express or Implied.
- Express contracts are simply contracts that are stated expressly, or openly, in either writing or orally, at the time of contract formation.
- Implied contracts are created when two or more parties have no written contract.
- There are two types of implied contracts:
- Implied In-Fact Contracts: these are contracts which create an obligation between the parties based on the facts of the situation. For example, assume your neighbor hires you to wash his car every Friday for the entire holidays. You wash your neighbor’s car for the first four weekends of the holidays and get paid on Friday morning each time. The fifth Friday you wash the car and when you arrive at your neighbor’s house for your pay, your neighbor refuses to pay you. The law will infer that there is a contract between you and your neighbor, even though you never put anything in writing. This is an implied in-fact contract.
2. The other type of Implied contract is that which is Implied At-Law
In the case between Jones and Smith, the law imposes a duty to perform a contract, and will enforce such a contract even against a person’s will, where the situation is such that without this legal intervention, one party would be <u>unfairly enriched</u> or advantaged by another party’s action.
- In the question above, Smith is a CPA. He is qualified in every respect to carry out Professional Tax services. His services may be relied upon with a great degree of confidence.
- If Jones had not filed those tax returns, he probably would have lost monies that should have accrued to him from the government.
This type of agreement is also considered a quasi-contract. A quasi-contract occurs where the law imposes an obligation upon the parties where in fact the parties did not intend to enter into a contract and made no promise to perform.
However, because one party would be unjustly enriched by another party’s action, the beneficiary of those actions must make restitution or pay fair value for the services provided, even though there was never any intention to enter into an agreement.
Cheers!
Answer:
The Hi-Stakes Company
a. If the direct exchange rate increases, the dollar strengthens relative to the other currency.
b. If the indirect exchange rate increases, the dollar also strengthens relative to the other currency.
Explanation:
When the exchange rate increases, it means that more of the other currency is required in order to embark on importing and exporting transactions. However, the increases will weaken the ability of the importing currency to afford the dollar-based goods, which have then being made more expensive.
Answer:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company.
b.Equity Multiplier or P/E ratio=Market value per share/Earning per share.
Explanation:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company. The Debt Equity ratio can be calculated using the Market value of debt or equity. It can also be calculated using the book values of debt or equity which are included in the balance sheet of the company.
b. Equity multiplier is also known as price /earning ratio. A price/earnings ratio or P/E ratio is the ratio of the market value of a share to the annual earnings per share. For every company whose shares are traded on a stock market, there is a P/E ratio. For private companies (companies whose
shares are not traded on a stock market) a suitable P/E ratio can be selected and used to derive a valuation for the shares.
Equity Multiplier or P/E ratio=Market value per share/Earning per share.
