If the government wants to expand aggregate demand, it can "rebate" government purchases or "cut" taxes.
<h3>What is aggregate demand?</h3>
The total quantity of demand for all finished products and services generated in an economy is measured as aggregate demand.
Some characteristics of aggregate demand are-
- The total amount of money spent on those goods and services at a particular price level and time is known as aggregate demand.
- The correlation between output and all prices can be seen on an aggregate demand curve.
- In the end, the aggregate demand curve slopes downward because it predicts a fall in real gross domestic product (GDP) as prices rise.
- Consumer spending, investment spending, government spending, and the difference between exports and imports are all added together to determine aggregate demand.
- When one of these variables changes but the overall supply stays unchanged, aggregate demand will alter.
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Answer:
8.7%
Explanation:
Given that,
Real risk free rate = 5%
Expected inflation:
This year = 3%
Next year = 3.5% and thereafter = 4%
Estimated maturity risk premium = 0.1 × (t - 1)%
t = number of years to maturity
Average inflation rate:
= (3% + 3.5% + 4%) ÷ 3
= 3.5%
Estimated maturity risk premium:
= 0.1 × (t - 1)%
= 0.1 × (3 - 1)%
= 0.2%
Therefore,
Yield on a 3 year treasury note:
= Real risk free rate + Average inflation rate + Estimated maturity risk premium
= 5% + 3.5% + 0.2%
= 8.7%
The correct answer is A. Quota.
Quota is an example of Trade regulation.
Quota is termed as the trade restriction of government imposed which limits monetary value or number of goods for a particular period which a country may either export or import.
The purpose of countries using quotas is to be able to regulate volume of trade. By restricting competition of foreign quotas it helps to boost domestic production.
Technically you could live in a tree house if you wanted to.
Strategic planning is an Analytical approach through which strategic choices can be assessed.