Answer:
Contractionary fiscal policy to prevent real gdp from rising above potential real gdp would cause the inflation rate to be <u>LOWER</u> and real gdp to be <u>LOWER</u>.
Explanation:
A government engages in contractionary fiscal policy when it decreases spending or increases taxes. This is done to lower the economy's inflation rate, but it also decreases aggregate income which will decrease aggregate supply, resulting in a lower real gross domestic product.
Answer:
The correct answer is both the compensation for inflation as well as the real rate of interest.
Explanation:
Nominal rate of interest is the one which is described as the rate of interest before taking or considering the inflation into the account. The nominal could also defined as to advertised or state the rate of interest on the loan, without considering the account of any fees or any interest which is compounding.
So, the nominal rate of interest is the one which involve or comprise of the compensation for inflation and the real interest rate of the interest.
A Pay-Survey is a report based on research of compensation rates for workers performing similar jobs in other organisations.
Hi The type of insurance is called Bodily injury coverage
Answer:
expectations theory
Explanation:
Expectations theory is defined as the prediction of what short-term interest rates will amount to in future based on the current long-term interest rates on an investment.
The theory suggests or states that "an investor will earn the same amount of interest by investing in two consecutive one-year bond investments that in one two-year bond investment".
Simply put, the theory say that one can invest twice in a one year bond and still make the same interest rate as investing once in a two-year bond.
This theory helps investors to make profits faster and even higher through multiple investments on bonds.
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