Discretionary fiscal policy is defined as fiscal policy triggered by the state of the economy.
<h3>What is discretionary fiscal policy?</h3>
This refers to the decision of the federal government to increase or decrease taxes. Here, the changes in taxes are subject to the president and congress approval.
Hence, discretionary fiscal policy is defined as fiscal policy triggered by the state of the economy.
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Answer and explanation:
The Deceptive Trade Practices Act (DTPA) of 1973 protects consumers from misleading information provided during the sale of a good or service. If a defendant is found liable in a DTPA lawsuit, the plaintiff is entitled to <em>monetary damages for the recovery of economic damages, anguish damages, discretionary damages, </em>and <em>attorney's fees</em>.
Usually to support a cause for a good reason hope this helps!
Answer:
b. Reducing the minimum wage and the time and cost to open a business would shift the long-run aggregate supply curve to the right
Explanation:
Minimum wage is a wage set by the government, to pay for laborers. Wages below this is illegal. Wages are also a major cost to any firm. When they have been reduced, cost of production is likely to fall. Cost of production is a factor affecting supply. When cost of production falls, supply shifts right.
This is explained as that when cost of production falls, businesses can now make higher profits. This acts as a motivation for many other firms to also enter into the market. Therefore, supply is likely to rise in the long-run, shifting the supply curve to the right.
Time and cost to open a business is another factor affecting supply. When the time and cost is high, it discourages new firms because they do not want to undergo the hassle of submitting many legal documents or may not have enough funds to pay for all the costs. However, when the cost and time taken falls, more firms will be willing and able to enter into the market. Thus, the supply curve shifts right in the long run, increasing quantity supplied.
Answer:
The correct answer to the following question will be Option D (Financial distress and agency costs).
Explanation:
- A cost of an agency is a form of company's internal expense that comes from an employee working on behalf of action of the principle. Agency costs usually occur from core redundancies, confusion, and delays, such as shareholder and management conflicts of interest.
- Distress expense applies to the expenses that a financially distressed company faces beyond the business cost, such as increased capital expenses. Troubled companies tend to have a tougher time fulfilling their financial responsibilities, which turns into a higher chance of default.
- When evaluating the company's value as a feature of market structure, the present value of the tax shield gain is balanced by the current value of the anticipated financial distress and agency expenses, which results in an ideal internal market structure.
Therefore, Option C is the right answer.
