All categories

2 years ago

How does the budget process make fiscal policy difficult to implement? (lo32-3)?

1 answer:

7 0

The budget process makes fiscal policy difficult to implement because
---The budget process begins a year and a half before the budget is implemented, and this will make it difficult to know what type of fiscal policy will be needed because it requires us to predict the problem and opportunities that arise during the operation.
---Many budget decisions are made for political reasons , because many politicians was appointed by interest groups that controlled by big companies.
---Nearly two-thirds of the budget is mandated by federal programs and cannot be easily changed, even if it could be changed, the cost could outweihgt the benefit.

You might be interested in

A particular stock has a dividend yield of 1.5 percent. Last year, the stock price fell from $82 to $68. What was the return for

alexandr1967 [171]

Answer:

The return for the year is -15.57%.

Explanation:

We have the formula to calculate Return for the year as:

* Return for the year = Dividend yield + Capital Gain/(Loss).

in which:

* Dividend yield is given at 1.5%;

* Capital Gain/(Loss) = Price at year end/ Price at the beginning of the year - 1 = 68/82 -1 = - 17.07%;

So we have:

* Return for the year = Dividend yield + Capital (Loss) = 1.5% - 17.07% = -15.57%.

Thus, the answer is -15.57%.

7 0

2 years ago

In order for private bargaining to result in the efficient outcome,A) an injunction must be requestedB) property rights must be

lianna [129]

Answer:

The correct answer is letter "B": property rights must be clearly assigned to the parties involved in the dispute.

Explanation:

Named after British lawyer and economist Ronald Coase (1910-2013) the Coase Theorem states when there are competitive markets and no transaction costs bargaining will lead to an efficient and mutually beneficial outcome. The theorem affirms that when property rights are defined and divided, parties will gravitate to the most efficient and beneficial outcome.

3 0

2 years ago

In a given amount of time John can produce either 40 pounds of vegetables or 10 pounds of chicken. In the same amount of time Ge

aleksandrvk [35]

Answer:

Ten pounds of chicken to trade for at least 40 pounds of vegetables but not more than 50 pounds of vegetables

Explanation:

Vegetables Chicken Trade Off Ratio

John 40 10 4:1 (40/10) or 1:0.25 (10/40)

George 25 5 5:1 (25/5) or 1:0.20 (5/25)

John has comparative advantage in Chicken and George has comparative advantage in Veggies because :

John's chicken opportunity cost, in veggies < George (4<5). George's veggies opportunity cost, in chicken < John (0.20<0.25).
George is more (5X) productive in veggies than chicken, than John (4X). John is less unproductive in chicken than veggies (1/4th), compared to George (1/5th).

So, John will sell Chicken to George & George will sell veggies to John. Gains from trade are when each get trade ratio better than their their own trade off ratio.

It implies: John gets >' 4 pounds veggies per chicken pound' and George gets > '0.20 pound chicken per veggie pound'.
Unitary method:- '1chicken : 4veggies' = '10chickens : 40veggies' and '0.20chicken : 1veggie' = '10chickens : 50 veggies' .

7 0

2 years ago

Which one of the following statements best defines the efficient market hypothesis? A. Efficient markets limit competition. B. S

lubasha [3.4K]

Answer:

The correct answer is letter "D": All securities in an efficient market are zero net present value investments.

Explanation:

The Efficient Market Hypothesis (EMH) states that neither public or insider information cannot help in an attempt to beat the market because stocks already show all available information possible. Thus, neither using technical or fundamental analysis could be useful to predict future stock price movement.

In other words, in a market under EMH all stocks are zero Net Present Value (present value inflows minus present value outflows) investment vehicles.

5 0

2 years ago

Ted purchased an annuity today that will pay $1,000 a month for five years. He received his first monthly payment today. Allison

victus00 [196]

Answer:

The correct option is E,Ted's annuity has a higher present value than Allison's

Explanation:

Both annuities do not have equal amount today as $1000 received today is higher in value terms than $1000 receivable in a month's time since cash receivable earlier is much more valued than the one receivable later.

Ted's annuity is an annuity due not an ordinary annuity

Allison's annuity is an ordinary annuity not annuity due

Allison's annuity has a lower present value than Ted's and not the other way round.

The only correct statement is option E,since Ted is expected to receive $1000 today, his annuity has a higher present value compared to Allison's

7 0

3 years ago