Answer:
A, B and D
Explanation:
Expanding the money supply is an exercise of expansionary monetary policy.
This decision will first allow our tech startup to acquire cheaper loans and expand our operations, this expansion in operations will result in new employment opportunities and hence as a result, unemployment will be reduced assuming this is a general trend in the economy.
This decision also directly reflects an increased investment and hence the GDP on the whole and the investment part of GDP would both increase,
GDP = C + I + G + (X - M), where I = investment.
This change in macro economy will increase aggregate demand due to expansionary effects. Increase in imports is not conclusive as it may or may not happen depending upon the demand state.
Hope this helps.
Answer:
False
Explanation:
An economic agent should specialise in the production of the good for which it has a comparative advantage in its production.
An economic agent has a comparative advantage in production if it produces at a lower opportunity cost when compared with other economic agents.
Anne's opportunity cost in pie production = 4/3=1.33
Anne's opportunity cost in shirt production = 3/4 = 0.75
Mary's opportunity cost in pie production = 5/2 = 2.5
Mary's opportunity cost in shirt production = 2/5 = 0.4
Anne has a comparative advantage in the production of pies and Mary has a comparative advantage in the production of shirts.
Anne should specialise in pie production and Mary should specialise in shirt production.
I hope my answer helps you
Answer:
$171,000
Explanation:
The company psid $950,000 for office furniture, building and land
The market value of the assets is
Office furniture= $190,000
Building= $740,000
Land= $132,000
Therefore the cost that should be allocated to the office furniture can be calculated as follows
= 18/100 × 950,000
= 0.18×950,000
= 171,000
