Assume that congress and the president make tax and spending decisions without a balanced-budget amendment or any other deficit targeting measure. In the event of a negative demand shock,
A. the deficit would increase, worsening the decrease in AD caused by the shock.
B. the deficit would decrease, worsening the decrease in AD caused by the shock.
C. the deficit would increase, lessening the decrease in AD caused by the shock.
D. the deficit would decrease, lessening the decrease in AD caused by the shock.
Answers
A. The deficit would increase, worsening the decrease in aggregate demand (AD) caused by the shock.
In the event of a negative demand shock, if Congress and the president make tax and spending decisions without a balanced-budget amendment or any other deficit targeting measure.
When there is a negative demand shock, it means that there is a significant decline in overall spending and economic activity. To counteract this decline and stimulate the economy, policymakers often implement expansionary fiscal policies, such as reducing taxes or increasing government spending. These policies result in increased government expenditures and reduced tax revenues, leading to a larger budget deficit.
By increasing the deficit, policymakers inject more money into the economy, which can help offset the decrease in aggregate demand caused by the negative shock. This additional government spending can stimulate consumption and investment, thereby lessening the impact of the shock on overall economic activity.
However, it is important to note that the effectiveness of deficit spending in mitigating the negative effects of a demand shock depends on various factors, such as the size and timing of the fiscal stimulus, the responsiveness of consumers and businesses to the stimulus, and the overall health of the economy.
In summary, in the absence of deficit targeting measures, an increase in the deficit would likely occur in response to a negative demand shock, aiming to lessen the decrease in aggregate demand and stimulate economic activity.
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Related Questions
what is the single most important element of apple’s global tax strategy?
Answers
The single most important element of Apple's global tax strategy is their use of offshore tax havens, such as Ireland and the Caribbean, to minimize their tax liabilities.
By shifting profits to these jurisdictions, Apple is able to take advantage of lower tax rates and avoid paying taxes in countries where they do business. This strategy has been criticized by lawmakers and regulators around the world, leading to investigations and fines in countries such as France and Italy.
However, Apple maintains that they abide by all tax laws and regulations in the countries where they operate. Despite these controversies, Apple's tax strategy has been instrumental in their ability to maintain high profits and shareholder returns.
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Someone help me find 2161965 please.
Answers
michael is a manager whose subordinates have moderate readiness. according to the hersey and blanchard model of leadership, michael should use which of the following styles? a. telling b. situational c. selling d. participating e. delegating
Answers
According to the Hersey and Blanchard model of leadership, the most appropriate leadership style for a manager with subordinates who have moderate readiness is the Selling style.
This style involves a high level of directive behavior, where the leader provides specific instructions and closely supervises the work of the subordinates. At the same time, the leader also uses a supportive style, providing encouragement, feedback, and recognition to build the confidence and skills of the subordinates.
This style is effective when the subordinates have moderate readiness because they have some skills and experience but still need guidance and direction. The Selling style helps the leader to balance the directive and supportive behaviors and provide the right level of leadership to develop the subordinates' competence and commitment.
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Is marketing hard? and it is stressful or can give you an anxiety?
Answers
Answer:
yes yes yes yes yes
Explanation:
There is so much pressure and things at stake that sometimes you feel like everything's gonna go wrong.
what is business and what is occupation
Answers
Answer:
Business:
A person's regular occupation, profession, or trade.
Occupation:
A job or profession.
Explanation:
I looked them up in a dictionary.
Please mark me brainliest! I need it! Please!
When marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers, they are engaging in ________.
Answers
When marketers evaluate the attractiveness of each potential segment and decide in which of these groups, they are engaging in targeting.
A serviceable obtainable market also known as a target market, can be defined as a group of customers within a business's serviceable available market at which a business aims its marketing efforts and resources. A serviceable obtainable market is a subset of the total market for a service or product. Target market used to helps increase the effectivity of the campaign.
There are 5 different types of targeting, such as:
Behavioral Targeting Contextual TargetingSearch RetargetingSite RetargetingPredictive TargetingLearn more about target marketing here https://brainly.com/question/13363009
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What type of Interests pays interest on interest?
O Compound Interest
O Simple Interest
Answers
Answer:
Compound interest
Explanation:
Petty cash fund entries journalize the entries to record the following: check no. 12-375 is issued to establish a petty cash fund of $1,200. the amount of cash in the petty cash fund is now $396. check no. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $466; miscellaneous selling expense, $193; miscellaneous administrative expense, $121. (because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.) question content area a. journalize the entry to establish the petty cash fund. if an amount box does not require an entry, leave it blank. blankaccountdebitcredit blank - select - - select - - select - - select - question content area b. journalize the entry to replenish the petty cash fund. for a compound transaction, if an amount box does not require an entry, leave it blank.
Answers
The journal entries to establish and replenish the petty cash fund would be: Debit: Petty Cash Fund 500, Cash 476, Cash Short and Over 24; Credit: Cash 500, Petty Cash Fund 500, Office Supplies 212, Miscellaneous Selling Expense 156, Miscellaneous Administrative Expense 61.
a. Establish Petty Cash Fund:
Debit: Petty Cash Fund 500
Credit: Cash 500
b. Replenish Petty Cash Fund:
Debit: Cash 476
Debit: Cash Short and Over 24
Credit: Petty Cash Fund 500
Credit: Office Supplies 212
Credit: Miscellaneous Selling Expense 156
Credit: Miscellaneous Administrative Expense 61
a. The initial sum of money placed in the petty cash fund is recorded in the journal entry used to create it. The full $500 is deducted from the petty cash pool, and the same amount is credited to cash.
b. The extra money added to the petty cash fund is noted in the diary entry to replenish it. The full $476 from the replenishment check is debited to the cash account.
The $24 discrepancy between the replenishment check and the fund's value is deducted from the Cash Short and Over account.
The full $500 is credited to the Petty Cash Fund. The sums shown in the summary of receipts are all credited to the accounts for office supplies, other selling expenses, and other administrative expenses.
Complete Question:
Petty Cash Fund Entries
Journalize the entries to record the following:
Check No. 12-375 is issued to establish a petty cash fund of $500.
The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)
a. Journalize the entry to establish the petty cash fund. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to replenish the petty cash fund. If an amount box does not require an entry, leave it blank.
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Insurance can help with ???
Answers
Answer:
B. In an emergency
Explanation:
Insurance is purchased to protect things that you own
The Axiomatic Approach to the expected utility principle is based on the law of large numbers
True
False
Answers
The statement is false. The Axiomatic Approach to the expected utility principle is not based on the law of large numbers.
The axiomatic approach is a mathematical representation for representing preferences about uncertainty. It is basically about a set of axioms that gives information about decision making behavior. These axioms include independence, continuity and completeness.
The law of large numbers states that as the number of independent trials increases, the average of the outcomes approaches the expected value. It is not related to axiomatic approach to expected utility theory.
Thus, the Axiomatic Approach to the expected utility principle is not based on the law of large numbers.
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One reason the ad curve is downward sloping is the __________ effect
Answers
price level falls, purchasing power rises effect is the reasons the ad curve is downward slopinging
Who wants to buy me?⊇·⊆
Answers
Answer:
how much
Explanation:
lol jk
4941551496 p.a.ssw.ord yaP2D2
CO.ME FA.ST ON ZO.O.M
Answers
Answer:
WHY FAST?
Explanation:
Beginning work-in-process inventory was 50% complete for direct materials and direct labor costs. Ending work-inprocess inventory was 75% complete for direct materials and direct labor costs. Direct material work-in-process inventory on January 1 was $50,000. Direct material costs added during the quarter were $720,000. What is the total value of material costs in ending work-in-process inventory using the weighted-average unit cost inventory valuation method
Answers
Answer:
WIP ending inventory= $180,000
Explanation:
First, we need to calculate the equivalent units of production for direct materials in ending inventory.
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 720,000*0.75
Equivalent units of production= $540,000
Now, work in process ending inventory:
WIP ending inventory= 720,000 - 540,000
WIP ending inventory= $180,000
What is the difference between a total and a subtotal?
Answers
Explanation:
SUB-TOTAL:
The total for a part of a list of numbers being summed.
TOTAL:
An amount obtained by addition of smaller amounts.
Answer:
subtotal is all the different parts being added together from different list.
total is the all items being added together plus tax.
Explanation:
Education required for an animator
Answers
Answer: A bachelor's degree in an art related field
Explanation: Like most art related careers, you need a strong art portfolio to getting an art related job.
The par value per share of common stock represents the:.
Answers
Which difference between your bank statement and your records is most
likely to indicate fraud?
Answers
The process of comparing your bank statement to your accounting records is known as bank statement reconciliation. This is how it goes. Transactions involving checks and cash are often recorded in a check register, which is a component of your general ledger. A similar record of your company checking account is kept by the bank.
What is accounting?The process of gathering, compiling and reporting information on business and financial transactions. also: this system's guidelines and practices. as a first-year student, I studied accounting: work done in accounting or by accountants.
In order to prevent and detect fraud, bank reconciliations are a crucial internal control tool. By explaining the discrepancies between the cash balances in the accounting record and the bank balance position according to the bank statement, they also assist in identifying accounting and banking problems.
Therefore, The statement to your accounting records is known
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What were the two main opposing views of Adam Smith and Karl Marx?
Answers
Answer:
Adam Smith, author of "The Wealth of Nations", was a staunch believer in the free market and private property. Karl Marx, on the other hand, believed that the free market was destroying the world and leading to the "exploitation" of the middle class and the poor.
To examine
the weekly payroll of all employees, one would look at the:
Answers
To examine the weekly payroll of all employees, one would look at the: d. payroll register.
What is the payroll register?The payroll register is a book or record that is used to fill in the details of all the employees and their payment logs. A record of this register is often kept in good condition in case of any future discrepancies that will have to be resolved.
A person who wants to examine the weekly payroll of all employees in an organization must be able to look at the payroll register to know what is obtainable. There, he would find the names of the employees, their job roles and payment record.
Options:
a. W-4
b. employee earnings record
c. W-2
d. payroll register.
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If my revenue is one million and my expenses are 1,386,000, what's my profit in percentage
Answers
The profit in percentage given the revenue and the expenses is -38.60%
What is the profit in percentage?Percentage is the fraction of a number expressed as a value out of 100. The sign that is used to represent percentage is %. In order to convert a number to percentage, multiply by 100.
Profit is the difference between revenue and expenses. Revenue is the total income earned by a company before any deductions are made. Expenses include all the cost incurred in running a business.
Profit = revenue - expenses
1,000,000 - 1,386,000 = -386,000
Profit in percentage = (profit / revenue) x 100
(-386,000 / 1,000,000) x 100 = -38.6%
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Which is the preferred method of payment for making a hotel room reservation?
Answers
When using credit, the purchase amount becomes what once the payment agreement is made?.
Answers
Explanation:
Credit allows for purchases without cash. Credit agreements are not legally binding. Credit is free.
Helpmeeeeeeeeeeeeeee
Answers
Answer:
18. b : most economic decisions are made by buyer and sellers
19. b : federal income tax
Explanation:
Matt works part-time and is paid $6.75 per hour. Determine Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours. Round your answer to the hundredths place.
Answers
Answer:
Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours is equal to $136.69
Explanation:
Per hour amount paid to Matt = $6.75
Total number of hours worked by Matt = 20.25
To find Gross pay, multiply hours worked and hourly rate of pay.
Therefore,
Matt's gross pay (hours worked × hourly rate of pay) for last week when he worked 20.25 hours \(=20.25(6.75)=\$136.6875\) ≈ $136.69
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the price the investor receives when the stock is sold. The final price includes the original price paid plus an expected capital gain. The actions of the marginal investor determine the equilibrium stock price. Market equilibrium occurs when the stock's price is -Select- its intrinsic value. If the stock market is reasonably efficient, differences between the stock price and intrinsic value should not be very large and they should not persist for very long. When investing in common stocks, an investor's goal is to purchase stocks that are undervalued (the price is -Select- the stock's intrinsic value) and avoid stocks that are overvalued. The value of a stock today can be calculated as the present value of -Select- stream of dividends:
Answers
Answer:
marginal investor
equal
less
infinite
Explanation:
the value of a stock depends on the sum of the value of the dividend yield and capital gains yield
dividend yield = dividend / price of the stock
capital gains yield is a change in the value of the stock as a result of appreciation in the value of the stock.
The intrinsic value of a stock can be calculated using various dividend models. some of them include :
The Gordon constant growth dividend model The two stage dividend growth model The H-model The three stage dividend growth modelThe market is in equilibrium when price equal intrinsic value
a stock is undervalued when the price of the stock is less than its intrinsic value
A stock is overvalued when the price of the stock is greater than its intrinsic value.
An investor would want to purchase a stock that is undervalued so that they can take advantage of increase in the value of the stock
Th dividend used to calculate the intrinsic value is infinite. This is because dividends are paid infinitely as long as the investor holds the stock and the company exists
Dota inc stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return and a 25% chance producing a 18%. What is the firm expected rate return?
Answers
The question is incomplete. Here is the complete question.
Dota inc stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return and a 25% chance producing a -18%. What is the firm expected rate return?
Answer:
9%
Explanation:
Dora incorporation stock has a 25% chance of producing a 30% return
50% chance of producing a 12% return
25% chance of producing a -18% return
Therefore the firm's expected rate of return can be calculated as follows
= 25/100(30) + 50/100(12) + 25/100(-18)
= 0.25(30) + 0.50(12) + 0.25(-18)
= 7.5% + 6% - 4.5%
= 9%
Hence the firm's expected rate of return is 9%
what is the shape of curve for all cooperative processes?
Answers
Cooperative processes can be described by a variety of different curves depending on the specific process in question. However, one general characteristic of cooperative processes is that they exhibit sigmoidal, or S-shaped, curves. This sigmoidal curve can be described mathematically by a logistic function, which is commonly used to model the growth of populations, the spread of disease, and the uptake of drugs or other substances.
The sigmoidal curve typically consists of an initial phase of slow growth, followed by a period of rapid growth, and then a final phase of saturation or plateau. This pattern reflects the fact that cooperative processes often require some threshold level of cooperation before they can start to take off, but once that threshold is reached, they can quickly accelerate and become self-reinforcing.
Examples of cooperative processes that exhibit sigmoidal curves include the formation of protein complexes, the spread of cultural memes, the adoption of new technologies, and the emergence of collective action in social movements. By understanding the shape of these curves and the underlying mechanisms that drive them, we can better predict and influence the behavior of complex systems in a wide range of fields.
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consider the following: days' sales in inventory is 55 days, average collection period 20 days, and average payment period is 10. what is the operating conversion cycle?
Answers
The operating conversion cycle c. 75
The operating cycle is calculated by adding the days' sales in inventory (DSI) to the average collection period (ACP). It represents the time it takes for a company to convert its resources (inventory) into cash through sales and collection.
In this case, the DSI is 55 days, and the ACP is 20 days. Therefore, the operating cycle is:
Operating Cycle = DSI + ACP
= 55 + 20
= 75
It's worth noting that the average payment period (the time it takes for the company to pay its suppliers) is not required to calculate the operating cycle in this case.
The operating cycle specifically focuses on the time it takes to convert inventory into cash and does not involve payment to suppliers.
Therefore, the correct answer is c. 75.
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Your question is incomplete, but probably the complete is:
Consider the following: Days' sales in inventory is 55 days, Average collection period 20 days, and Average payment period is 10. What is the operating cycle?
a. 25
b. 65
c. 75
d. 95
identify two ways to deposit money into and withdraw money out of your checking account.
Answers
Answer:
There are two ways to make deposits and withdrawals from a checking account: by going to a bank branch and working with a bank teller, or by using the nearest ATM.
Explanation: