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kirill115 [55]
3 years ago
12

What are the criticisms of fiscal policy

Business
1 answer:
vesna_86 [32]3 years ago
4 0

Answer:

Fiscal policy is the adjustment of tax rate and government spending that is used to handle current economic situation.

There are several of criticism that usually found on fiscal policies.

- Time Lags.

The effect of fiscal policies could only be felt years after the policies are made. Often times, this goes unnoticed by the citizens of the country, making it look like that the government took no action to handle their economic issues.

- Strengthening foreign influence

One of the things that the government can do to reduce the inflation is by selling government bonds to the public. These bonds can be bought by companies from another countries. This will strengthen that country's influence over US economy.

- It could create a budget deficit for the next government officials.

Government in United States were reshuffled between 2-4 years. While the effect of fiscal policies could need more than 10 years before it actually can be felt.  Sometimes, fiscal policies taken by previous government could create a deficit that had to be handled by the next government after the election.

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If the capital stock is fixed and something happens to raise the marginal product of capital (MPK) for any given quantity of cap
nadezda [96]

Answer:

D. rise

Explanation:

D. As per the study, marginal product theory suggests that, as the marginal product of capital (MPK) increases even if the capital stock is fixed or unchanged, the real rental will also be changed the same way i.e.  it will rise in this given scenario.

5 0
3 years ago
What makes the demand for u. s. dollars change? in world demand for u. s. exports ______ the demand for u. s. dollars. a in the
stich3 [128]

Increasing world demand for U.S. exports increases the demand for U.S. dollars. A rise in the U.S. interest rate differential​ increases the demand for U.S. dollars.

The official money of the United States of America is the USD (United States dollar). One hundred cents make up one dollar, often known as the U.S. dollar. It is distinguished from other currencies based on the dollar by the symbol $ or US$.

A country's currency will be in great demand if its exports exceed its imports since more people will want to buy its products. According to supply and demand economics, prices increase and the value of the currency increases when demand is high. Generally speaking, a country's currency will appreciate at higher interest rates. Higher interest rates frequently draw foreign investment, which raises both demand for and the value of the currency of the host nation.

To know more about U.S. dollars refer to:  brainly.com/question/26958108

#SPJ1

5 0
2 years ago
At the end of 2017, Grouper Company has accounts receivable of $916,100 and an allowance for doubtful accounts of $42,400. On Ja
Gennadij [26K]

Answer:

Since the debt has already been provided for by Debiting bad debt expense $42,400 and Crediting Allowance for doubtful debt $42,400, the entries required to write off the debt from Ramirez Company of $6,330 will be

Debit Allowance for doubtful debt $6,330

Credit Accounts receivable $6,330

Being entries to writeoff debt due Ramirez Company of $6,330

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

8 0
3 years ago
Which of the following holds a company liable for negligence in the production, design, sale, or use of products the firm market
matrenka [14]

Answer:

Product liability

Explanation:

Product liability is when manufacturing company is held responsible for the quality of products they release for sale.

So for a product that is defective the company is liable and will bear the cost of product defects.

When defective products cause harm to the consumer, they can sue the company court.

Product liability law is considered as a type of personal injury law.

4 0
3 years ago
Scubapro Corporation currently has 500,000 shares of common stock outstanding and plans to issue 200,000 more shares in a season
Oduvanchick [21]

Answer:

the answer is : the shareholder can buy as many he wants to owned

Explanation:

for a investment company when they offers a new shares , and the shareholders who has been buying every time with the same company they get a benefits from new shareholders , that is why any one them can buy any share without limit.

6 0
3 years ago
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