Answer:
Banks make money by; A) charging interest
Explanation:
- Banks make their money through charging interest on the money they loan out.
- Banks get the money they loan out from the deposits their customers make and also from loans from other banks.
- It is this money that they then trade out in different ways including loaning for interests in order to make profit.
- Other that interests from loans, banks also get money through investing their capital in assets that generate revenue, one such asset is; investing in real estate.
A big increase in government spending is an example of a positive demand shock.
A demand shock is a sudden event that increases or decreases demand for goods or services temporarily. A positive demand shock increases aggregate demand and a negative demand shock decreases aggregate demand. Therefore there will be an initial inflation with the shock but since demand shocks are temporary and the central bank commits to an inflation rate target, then over time inflation will fall back down to the inflation target.
Expansionary fiscal policy is an increase in government spending or a decrease in taxation, while contractionary fiscal policy is a decrease in government spending or an increase in taxes. Expansionary fiscal policy can be used by governments to stimulate the economy during a recession.
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Didn't they use the money to help their other Allie Britan?
The correct answer is option A "Could have caused a collision". A officer could suspend the driving license for anyone that made something risky, but he could not program a cite to a driver for something irrelevant. The risk of having a collision because of his or her imprudent behavior, should be proved In order to cite a driver.
