<span>Based
on the graph, the expansionary fiscal policies affect the economy by letter B; the
government increases spending to raise output of goods and services and create
jobs in the short term. Expansionary fiscal policies are considered useful
strategy amidst recession. The raise in the demands of goods and services may
result to the increase of production thus, generate more jobs to people. Since
people are now employed, then, more people will spend for the goods and
service, and the cycle continues.</span>
Answer:
The market for lettuce would be impacted in three ways: labor supply would increase, meaning that lettuce producers can now hire more workers for a lower price.
This cheaper labor would likely increase supply, because more producers would try to enter the market to take advantage of the cheap workers.
Finally, the lower labor costs, and the higer supply, would reduce the price of lettuce, meaning that consumers will be able to buy more lettuce for less money.
Because the analyst is compelled to make assumptions for model inputs, valuation research is primarily based on science with a small amount of art. Bond and stock valuation are a few further uses, along with capital budgeting. The concept that its future earnings potential, a sum of money, is worth more today than it will be later.
What is valuation analysis?
A technique called valuation analysis is used to determine the approximate value or worth of any kind of asset, including businesses, stocks, fixed-income securities, commodities, real estate, and other assets.
Because the analyst must make assumptions for model inputs, valuation analysis is primarily a scientific process but also involves certain artistic elements. An asset's worth is essentially the sum of its present value (PV) for all anticipated future cash flows.
The time value of money is used in various financial contexts, such as capital planning, bond and stock valuation. Finding what a current investment will increase to in the future is the process of determining future worth. Compounding is the term for this.
Hence, the significance of the valuation analysis is aforementioned.
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Proponents of a fixed exchange rate system point out that a major drawback of a floating exchange rate is that it <u>C. leads to uncertainty</u> about the value of goods traded internationally.
<h3>What is a floating exchange rate?</h3>
A floating exchange rate refers to the foreign exchange rate as determined by the forex market based on supply and demand relative to other currencies.
A floating exchange rate system gives the government more scope to use monetary and fiscal policies to achieve domestic economic stability, unlike a fixed exchange rate regime.
Thus, proponents of a fixed exchange rate system point out that a major drawback of a floating exchange rate is that it <u>C. leads to uncertainty</u> about the value of goods traded internationally.
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