Answer:
The correct answer is: the slope of the aggregate-demand curve.
Explanation:
The aggregate demand comprises consumption spending, investment expenditure, government purchases, and net exports. The aggregate demand curve is a downward-sloping curve indicating that the aggregate demand will be higher at lower prices.
The aggregate demand curve is downward sloping because of the wealth effect, interest-rate effect and exchange rate effect.
When the price level decreases, the real value of wealth held by individuals will increase. This will cause consumer spending and hence aggregate demand to increase. This is called the wealth effect.
At lower price levels, the demand for money will also be lower as less money will be required to pay in exchange for goods and services. This decrease in the demand for money will shift the money demand curve to the left decreasing the interest rate. At lower interest rate investment expenditure will be higher. This will cause the aggregate demand to increase, this is called the interest-rate effect.
A decrease in price will make goods cheaper for foreign consumers as well as domestic consumers. So at a lower price, the exports will be higher and the imports will be lower. The net exports will thus increase. This will further increase aggregate demand. This is called the exchange rate effect.
The costs of the federal government have exceeded the benefits offered.
Answer:
b
Explanation:
Without a collage education, workers will actually lose money in the long run.
I cant see it Ooooooooooooooo
Answer:
$30,000 decrease in the net income of Fletcher Inc.
Explanation:
Product G contribution margin = Sales - Variable cost = $210,000 - $180,000 = $30,000.
Since the discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H, that means the fixed cost of $50,000 on product G will continue to be incurred while Product G contribution margin of $30,000 which is currently being contributed to the net income will be lost.
Therefore, the amount of change in net income for the current year that will result from the discontinuance of Product G is a $30,000 decrease in the net income of Fletcher Inc.