Answer:
the government impact the economy in four different ways by producing goods and services ,including roads and national defense .less than half of federal spending is devoted to the production of goods and services
Answer:
- <u>B. decreasing foreign expenses</u>
Explanation:
<em>Economic exposure</em> is the risk derived from the variation in the foreign revenues and expenses of the firm due to <em>exchange rate movements.</em>
If the<em> expenses are more sensitive to exchange rate movements than revenue</em>, means that a depreciation of the Mexican Peso would cause the expenses to increase more than revenue,
That means that the expenses would increase more than the revenue affecting the financial situation of the firm.
Hence, <em>to reduce the economic exposur</em>e, Old Main Co. should reduce its foreing expenses.
Answer:
The correct answer is B. Help offset changes in GDP.
Explanation:
In addition to the discretionary fiscal policies, through which the authorities actively decide to adjust spending or income in response to changes in the economic cycle, the variations that occur in these items must be taken into account without the need for governments Make new decisions. In the latter case, the changes respond to the role of automatic stabilizers.
Automatic stabilizers are those items of public budgets that are automatically altered, hence their denomination, as a result of changes in the level of economic activity. On the income side, it is worth pointing out the main stabilizers are the taxes that tax corporate profits, the income of workers or the consumption of goods and services; On the expense side, unemployment benefits, which support the income of families in times of increased unemployment, are one of the most relevant stabilizers.
Answer:
Although consumer and producer surplus changes are the same under quotas and tariffs, tariffs are preferable because the government can redistribute the tariff revenue to offset most of the deadweight loss.
Explanation:
