All categories

3 years ago

Fiscal policy proponents see fiscal as a superior strategy for market corrections.

Business

1 answer:

Arada [10]3 years ago

6 0

Answer: True

Explanation:

Fiscal policy refers to the government suing taxation and spending policies to influence the economy of a country. If the government wants to improve production, they reduce taxes and increase spending and if they want to reduce production, they increase taxes and reduce spending.

Fiscal policy proponents believe that the government is right to use fiscal policy to correct the market because its effect is more direct. John Maynard Keynes was one of the most famous proponent for Fiscal policy.

You might be interested in

The primary policy tool used by the fed to meet its monetary policy goals is.

Makovka662 [10]

The primary tool used by the Fed to achieve monetary policy goals is <u>Open Market Operations.</u>

<h3>What are Open Market Operations (OMO)?</h3>

This refers to the trading of securities by the fed.
Securities traded include bills, notes, and bonds.

When the fed wants to increase the money supply, they will buy these securities from the public. If it is a decrease they they seek, they will sell securities to the public.

In conclusion, this is Open Market Operations.

Find out more about Open Market Operations at brainly.com/question/14256204.

5 0

2 years ago

REM Real Estate received a check for $27,000 on July 1 which represents a 6 monthadvance payment of rent on a building it rents

ra1l [238]

Answer:

a. Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, $4,500

Explanation:

When the company receives the $27,000 check for six months of advance rent, it records the unearned revenue in a liability account named Unearned Rent Revenue. The resulting journal entry is:

(Dr) Cash, $27,000

(Cr) Unearned Rent Revenue, $27,000

With the passing of each month, the company <em>earns</em> one-sixth (1/6) of the unearned rent revenue (or $4,500), essentially reclassifying the revenue from unearned to earned. Therefore, after one month, the resulting journal entry is:

(Dr) Unearned Rent Revenue, $4,500

(Cr) Rent Revenue, $4,500

5 0

3 years ago

On October 1, 2009, the Nintendo Wii's Japanese price dropped from ¥25,000 to ¥20,000. In the three months after the price drop,

kykrilka [37]

Answer:

B) 0.7; inelastic

Explanation:

The computation of the absolute value of the price elasticity of demand is shown below:

Elasticity is

= [(Sales - prior sales) ÷ ( Sales + prior sales) ÷ 2] ÷ [(price - dropped price) ÷ (price - dropped price) ÷ 2

= [(1,040,000 - 890,000) ÷ (1,040,000 + 890,000) ÷ 2] ÷ [(25,000 - 20,000) ÷ (25,000 + 20,000) ÷ 2]

= (150,000 ÷ 965,000) ÷ (5,000 ÷ 22,500)

= 0.15 ÷ 0.22

= 0.7

It is less than one so the demand is inelastic

4 0

4 years ago

when restrictive government polocoes do not exist or when industries become deregulated, ther _ of entry is high.

Evgesh-ka [11]

Answer: threat

Explanation:

When restrictive government policies don't exist or when the industries become deregulated, then the threat of entry is high.

It should be noted that when there's entry of new competitors in an industry that offers same goods or services, then the competitive position of the company will be at risk. Therefore, the threat of new entrants refers to the ability of new companies to enter into an industry.

In such case, since there's no restriction of government policies, then the threat of entry will be high.

4 0

3 years ago

Pickett, inc. recorded its monthly transactions in the journal, but failed to record a transaction involving cash received from

Arlecino [84]

The transaction will not be transferred to the ledger, nor incorporated in the financial statements.

8 0

3 years ago