I believe the answer is: Economy
Economic growth in a country is measured with something called GDP (Gross Domestic Product) . GDP is calculated by counting all goods and services that produced by the nations in one year. Assuming that the market is in an equilibrium, the amount of GDP usually really close to people's purchasing power (ability to exchange money for goods and services.)
Answer and Explanation:
As we know that
Multiplier Effect = 1 ÷ Reserve Ratio
So,
Reserve ratio = 1 ÷ 0.2
= 5
Now this means that $1 million deposit result into increased by $5 million in the overall money supply
So the money supply should rise by $50 and it should be $10 of the government securities
Answer:
Investment income of $46,000 in its income statement
Explanation:
Calculation for the amount that Smith will report in the 2018 financial statements,
Investment income =Fair value of $594,000-Purchased $548,000
Investment income =$46,000
Therefore Smith will report investment income of $46000 in its 2018 financial statements,
Answer: C. Decrease government spending and increase taxes
Explanation:
The current GDP of this economy is $670 billion and this figure is higher than the $620 billion that the economy should be at.
This means that the economy is in danger of overheating and needs to be adjusted.
To do this one can use option C.
By REDUCING Government Expenditure, government purchases will drop which will aid in reducing the GDP.
By also INCREASING Taxes, the amount of money left for people to consume after they pay their taxes is less so that REDUCES Consumption as well leading to a smaller GDP.
Doing this is known as a CONTRACTIONARY FISCAL POLICY.
I think it's one and four but not so sure?
Did that help?
