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Ira Lisetskai [31]
3 years ago
11

Assume that laws have been passed that require the federal government to run a balanced budget. During a recession, the governme

nt will want to implement _____________________ but may be unable to do so because such a policy would ____________________________.
Business
1 answer:
Gnom [1K]3 years ago
3 0

Answer:

Expansionary fiscal policy; lead to a budget deficit

Explanation:

A balanced budget is when the income of the government equals government's spending

A recession is when the GDP of a country for two consecutive quarters is negative. It is a period of slowdown in economic activities.

If there is a recession, the government would want to increase money supply by conducting an expansionary fiscal policy but would be prevented from doing so because of the balanced budget rule as an expansionary fiscal policy would lead to a budget deficit.

A budget deficit is when government spending exceeds income

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when your combining like terms and there is only a negative outside of the parethisis what do you do??
ruslelena [56]
You mutiply the outside number by the 1st number on the inside of the paranthesis
6 0
3 years ago
Read 2 more answers
Marble Construction estimates that its WACC is 10 percent ifequity comes from retained earnings. However, if the company issuesn
dedylja [7]

Answer:

Projects E,F and G should NOT be considered.

Optimal Capital  is $5,750,000

Explanation:

The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)

                                 Accept if        r>k

                                 Reject if         r<k

                                   Mayaccept if r = k

If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.

The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital).  Considering this projects E,F and G should NOT be considered.

And considering the sizes the Optimal Capital  is $5,750,000 (the addition of sizes of all projects)

8 0
2 years ago
Suppose you deposit​ $2000 in currency into your checking account at a branch of Bank of​ America, which we will assume has no r
Finger [1]

Answer: Please see answer in the explanation column

Explanation:  A T- account resembles a tshape that shows a representation for financial records using  double-entry bookkeeping, when it involves  different accounts like asserts and liabilities, debits to liabilities decrease the account while credits increase the account. The contrary is true for assets

first T-account

.a) <u>Assets              |         Liabilities</u>

Reserve: +$2000        Deposit: +$2000

b)

<u>Assets                |        Liabilities</u>

Reserve $400        Deposit=+$2000

Loans: .+$1600         

Where required reserve ratio is 20% ie 0.02 x 2000= $400

The bank will keep $400 as reserve and can only loan out $1600

Deposited in another bank as

<u>Assets                |        Liabilities</u>

Reserve $1600        Deposit=$1600

4 0
3 years ago
"Which of the following is a support activity in a firm's value chain? A) Inbound logistics B) Operations C) Sales and marketing
Pepsi [2]

Answer:

The technology is a support activity in a firm's value chain.

Explanation:

Value chain analysis means the analysis which adds the value to the organization. It can be categorized in two activities - primary activities and support activities. This value chain analysis is propounded by Porter.

The primary activities includes inbound & outbound logistics, operations, Marketing & sales and service whereas support activities includes firm infrastructure, human resource management, technology , and procurement.

Thus,  the technology is a support activity in a firm's value chain.

4 0
3 years ago
Propound on why a library is said to be the memory of the human race?
Sonja [21]
Let's look at the phrase "<span>the memory of the human race?".

Memories are usually belonging to one specific human, and stored in their brain. The human race doesn't literally have a memory, so this must be  a metaphor.

This metaphor might mean what the human race, as a total, can remember and have access to.

So just like we remember what happened last Tuesday, the human race can find the information in a library about what happened in 1912- in this way, a library and a memory are similar, so a library is truly a memory of the human race.
</span>
3 0
3 years ago
Read 2 more answers
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