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MrMuchimi
3 years ago
9

Clinton and Trump on fiscal policy In the 2016 Presidential election​ campaign, both Hillary Clinton and Donald Trump committed

to big government infrastructure spending and tax cuts. ​Source: The Wall Street Journal​, July​ 27, 2016 Consider an increase in infrastructure spending and a tax cut of the same magnitude. What policy will change aggregate demand the​ most: an increase in infrastructure spending or a cut in​ taxes?
Business
1 answer:
Marrrta [24]3 years ago
6 0

Answer:

Clinton and Trump on fiscal policy In the 2016 Presidential election​ campaign

The policy that will change aggregate demand (AD) the most is a cut in taxes.

Explanation:

Aggregate demand is fueled mostly by household consumption.  A cut in taxes increases the marginal propensity to consume (MPC) and reduces the marginal propensity to save (MPS), but at the same time fuels the marginal propensity to invest by firms trying to meet the new aggregate demand, thereby increasing the aggregate supply (AS) which is the real GDP output.

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Knight Company reports the following costs and expenses in May.
Marina86 [1]

Answer:

A. Consider all indirect manufacturing costs

B. Consider all manufacturing costs

C. Consider non manufacturing costs

Explanation:

A) Manufacturing overhead.

Consider all indirect manufacturing costs

B) Product costs.

Consider all manufacturing costs

C) Period costs.

Consider non manufacturing costs

4 0
2 years ago
You can spend $100 on either a new economics textbook or a new CD player. If you choose to buy the new economics textbook, the o
Fed [463]

Answer: Option (B) is correct.

Explanation:

Given that,

Cost of new economics textbook = $100

Cost of new CD player = $100

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

As the cost of both the products are identical, so the opportunity cost of buying new economics textbook is the enjoyment of the new CD player.

4 0
3 years ago
Capital Consulting Company had 390,000 shares of common stock outstanding on December 31, 2017. On that date, there were also 4,
Nina [5.8K]

Answer:

Basic earning per share = $3.69

Explanation:

Earning per share (EPS) = earnings available to ordinary shareholders/ number of ordinary shares

Number of ordinary shares = 390,000 × 2 = 780,000 units

Net income                                           2,900,000

Preferred dividend                               <u>  ( 24,000)</u>

Earnings available to shareholders     <u>2,876,000</u>

Number of ordinary shares                   780,000 units

Earnings per shares =   $2,876,000/780,000 units

                                  = $3.69

5 0
3 years ago
Suppose autos cost consumers $30,000 and trucks cost consumers $15,000. What contribution does the production of 200 autos and 2
alexgriva [62]

Answer:

the  contribution made to the production of 200 autos and 200 trucks is $9,000,000

Explanation:

The computation of the contribution made to the production of 200 autos and 200 trucks is shown below

Contribution to GDP is

= $30,000 × 200 + $15,000 × 200

= $6,000,000 + $3,000,000

= $9,000,000

Hence, the  contribution made to the production of 200 autos and 200 trucks is $9,000,000

6 0
3 years ago
Suppose a local hardware store has explicit costs of $2 million per year and implicit costs of $44,000 per year. If the store ea
Korolek [52]

Answer: $94,000

Explanation:

7 0
3 years ago
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