Result of active fiscal policy : there may be stimulation of the economy in the short run, but there will be harmful effects to the economy in the long run.
Explanation:
Active fiscal policy implies that Congress and the President are actively attempting to shift the trajectory of the economy by adjustments in taxes and/or government expenditure.
In an open market, monetary policy often influences the rate of exchange and trade balance.
Moreover, in the long term, the development of international debt, which stems from large government expenditures, can lead investors to mistrust US assets which may trigger the exchange rate to fall.
Answer:
Market interest rate is also known as nominal interest rate. The nominal interest rate is sum of real interest rate and inflation rate. Fed try to control the monetary condition and real interest rates by manipulating money supply. These interest rates also affect the demand of money in market.
Part (a)
When commission of brokers decreases then buying and selling of stocks becomes easier and cheaper and people would transact in more and more stocks which will decrease the demand of money as liquidity of stock has increased.
Part (b)
When grocery store starts accepting credit cards then people would need to carry less cash and demand of money will decrease.
Part (c)
As financial investors are now worried about riskiness of stocks so they will decrease their investment in stocks and prefer holding more money so demand of money will increase.
Answer:
option. C. $50
Explanation:
Your loss is limited to $50 if you notify your financial institution within two business days after learning of the theft.
I believe the answer would be the mechanical solution.
The correct option is: For each unit of the good that is sold, buyers bear <u>one-half of the tax burden and sellers bear one-half of the tax burden.</u>
<u>Explanation</u>:
Incidence of tax is a term referred in economics which deals with division of taxes. Tax incidence refers to division of tax among the buyer and seller for a product. The tax incidence is related to the price elasticity of supply and demand.
When a product is sold, the buyer of the product is charged with one-half of the tax burden and the seller of the product bears the other-half of the tax burden.
The incidence of tax can be observed in two ways:
i) Formal incidence
ii) Effective incidence
