This will lead to increases in the fiscal deficits as the government earns less and may be spending more in forms of social protection i.e. unemployment benefits. These factors can be shown using the laffer curve, as tax rates increase tax
c. increases public saving but reduces national saving. d. reduces private saving, but increases national saving. 2. If the current market interest rate for loanable funds is below the equilibrium level, then there is a a. surplus of loanable funds and the interest rate will fall. b. shortage of loanable funds and the interest rate will fall.
When there is a larger demand for more expensive commodities, the demand for money increases and the cost to borrow follows. This is following the theory of money demand. (Sparknotes, 2013) It is true for a decrease in output. The fewer consumers are willing to buy, the lower the demand of money is creating lower interest rates. This can be seen in the housing market.
One of the functions of money is as a store of value. How does inflation affect money's ability to store value? (3-6 sentences. 2.0 points) As inflation increases it requires more and more dollars to buy the same thing. Hence, the dollar is worth less.
When this decrease occurs, the amount of consumer money within the bank increases, which rises the amount of funds available for loans. This decreases the cost and interest rates of loans. Aggregate supply analyzes the volume of goods and services produced by the economy at a given price level. This impacts the products and services offered at banks based on the current
To calculate the GDP of a certain x then one would input numeric values in the place where the letters are in the formula. Part 1: Assume that Country A has a population of 500,000 and only produces 1 good: cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more.
b) create more cash ﬂow than it uses. c) reduce its investment in ﬁxed assets since ﬁxed assets require the use of cash. d) avoid payments to the government so dividends can be increased. e) avoid the issuance of debt securities Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems 5. The primary goal of ﬁnancial management is to: a) maximize current dividends per share of the existing stock.
One of the functions of money is as a store of value. How does inflation affect money's ability to store value? (3-6 sentences. 2.0 points) Inflation makes the value of money go down. If there is an increase in inflation, the value of money goes down and vice versa if inflation decreases.
Proponents of the notion of a "political business cycle" suggest that: A. The standardized budget is a better indicator of the state of the economy than the actual budget B. Cyclical swings in the economy are produced by the inherent instability found in capitalist economies C. A possible cause of economic fluctuations is due to the use of fiscal policy for political purposes D. There is a tradeoff among goals that tends to make the economic policies of state and local governments procyclical 19. One of the timing problems with fiscal policy is an "operational lag" that occurs between the: A. Beginning of a recession and the time that it is recognized that the event is occurring B.
In the simulation for International Trade of Rodamia, I am the Trade Representative of the government of Rodamia. As chief advisor, negotiator and spokesperson on international trade and investment issues my job is to advise the President with recommendations for trade. The simulation provides some of the reasons that international trade may be necessary, the opportunity to explore which products to import and export as well as when to impose restrictions such as tariffs or quotas, or negotiate trade agreements. International trade has its advantages as well as limitations. Absolute advantage and comparative advantage plays a role in international trade.