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Neko [114]
3 years ago
7

Suppose that Congress enacts a major tax increase. At the same time, the Federal Reserve uses monetary policy in such a way that

the combined effect of the tax increase and the monetary policy is that GDP does not change at all. Based on this information, explain clearly what the overall (short-run) effect?
Business
1 answer:
boyakko [2]3 years ago
5 0

Answer:

Since GDP does not change, it means that Federal Reserve System undertook expansionary monetary policy to counteract the contractionary fiscal policy.

a. <u><em>Investment </em></u><em> </em>- Expansionary monetary policy means fall in interest rate, so investment would rise.

b. The net effect would be that AD curve would not have changed (since output is constant), so price level remains the same.

c. Government would get surplus as government spending is same but tax revenue rose.

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A sustainable society would emphasize A) maintaining the current rates of energy flow and resource use B) converting the world's
MrRissso [65]

It should be noted that a sustainable society would emphasize using energy efficiently and reusing and recycling matter.

<h3>What is a sustainable society?</h3>

A sustainable society can be regarded as a society that based her source of energy on resuable source.

This source can be solar because it is resuable unlike crude oil , therefore using energy efficiently and reusing and recycling matter should be a target.

Learn more about sustainable society at;

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8 0
2 years ago
Assuming that the direct materials used are $1520000, compute the total manufacturing costs using the following information. Raw
guapka [62]

Answer: $‭2,880,000‬

Explanation:

= Direct costs + Indirect costs

= Direct labor + Direct materials + Indirect labor + factory utilities + factory depreciation

= 760,000 + 1,520,000 + 50,000 + 150,000 + 400,000

= $‭2,880,000‬

5 0
3 years ago
If there is no written designated agency relationship, a client of Meramac Realty has what kind of relationship with Meramac
LuckyWell [14K]

Answer: c. A nonagency relationship with everyone in the office.

Explanation:

For an agency relationship to exist in the eyes of the law, there must be a contract with a written designated agency relationship between the client and Meramac Realty.

With no such contract in existence, the law recognizes no agency relationship between Meramac and any of its affiliates with the client. There is therefore a non-agency relationship with everyone in Meramac.

5 0
3 years ago
The new line of sunscreen products marketed by Radiance has allegedly been developed after using large-scale animal testing proc
Anna35 [415]

Answer:

Food, Drug, and Cosmetic Act is the correct answer.

Explanation:

3 0
3 years ago
In good years, dailey industries often loans cash to other companies, but in difficult years, they have to borrow cash from othe
MrRissso [65]

Any sort of funds used In financing a firm is recorded in the Financing activities while the loans cash will be recorded in the Financing activities of the statement of cash flows as well.

<h3>What is the Financing activities of cash flows?</h3>

This part of cash flows record the financing activities such as raising money through lending or issuing a bond as well as paying back to the investors.

Therefore, both transactions will be recorded in the financing activities of cash flows.

Read more about financing activities

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#SPJ1

4 0
2 years ago
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