Answer:
Contractionary Fiscal Policy is the correct answer.
Explanation:
It is a fiscal policy that includes increasing taxes and decreasing the expenditure to curb inflationary pressures. As the taxes are increased, households have less income to spend and the lower disposable income affects consumption. Tax increments also lead to less profit for businesses. GDP includes the consumption and private investment hence both of them fall as a result. The government tries to magnify the fall in GDP with the multiplier effect.
If the government decreases the expenditures then it would lead to a decrease in GDP, as the government expenditures are a part of GDP.
The statement that describes the expected outcome is: c. Supply of the shoes will increase, and market price will decrease.
<h3>What is supply?</h3>
Supply can be defined as the amount of goods or product produce that is available for buyers to buy or purchase.
If the cost of production is lower ,this will lead to increase in production as companies will be able to buy more materials and the outcome of this is that the market price of goods or product will reduce because the cost to manufactures has reduced.
Learn more about supply here:brainly.com/question/1222851
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Answer:
(a) $15
(b) $35
(c) 4
(d) $80
Explanation:
Given that,
Initial deposit = $20 bill
Required reserve ratio = 25%
(a) Money lend out by bank is as follows:
= Amount of deposit - Reserve requirement
= $20 - ($20 × 0.25)
= $20 - $5
= $15
(b) Money in the economy changed:
= Initial deposit + Amount of money lend out by bank
= $20 + $15
= $35
(c) Money multiplier:
= 1/ Required reserve ratio
= 1/ 0.25
= 4
(d) Money will eventually be created by the banking system:
= Change in deposits × Money multiplier
= $20 × 4
= $80
Answer:
The correct answer is E
Explanation:
Fee-commission combination is the term which is described as an agency which charges the fixed fee and it is charged on monthly basis for the services that is offered to the clients and the medial commissions earned are the one who are retained by the agency.
Therefore, the fee-commission combination is the kind of compensation contract where the agency charges the client a fixed monthly payment for the services.
