Suppose that the real money demand depends only on income, not on the nominal interest rate. Assuming all the remaining features of the model of chapter 7 considered in lectures being the same,
(i) Discuss the shape of the LM curve for this case and explain your answer in detail.
(ii) Discuss whether scal policies can be used to stabilize the economy under this case.
Answers
(i) Shape of LM curve: The LM curve illustrates the relationship between interest rates and income, assuming that the money market is in equilibrium.
(ii) The real money demand is only affected by income, therefore, fiscal policies would be effective in stabilizing the economy in this case.
(i) If the real money demand is only determined by income, the LM curve will be a vertical line since the nominal interest rate has no impact on the equilibrium in the money market. As a result, shifts in the IS curve will not influence the interest rate, but will simply impact income.
(ii) By increasing government spending or lowering taxes, the government can stimulate economic growth, which will increase income and, as a result, real money demand. This will lead to an increase in the equilibrium interest rate and a reduction in output.
If the government reduces government spending or increases taxes, the reverse will occur, lowering income and real money demand and decreasing the equilibrium interest rate, resulting in an increase in output. Fiscal policy, as a result, may be used to stabilize the economy in this case.
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Related Questions
I am Stuck Please Help
Interview five family members or friends. Ask them how many vegetable snack packs they would buy in a seven-day week at these prices: $2.75, $3.25, $4.75, $5.25, and $6.00. Make a table to record the quantities of snack packs they would purchase at each price. Give at least two reasons why you think the price of a product might vary.
Give at least two reasons why a consumer might buy more or less of something depending on the price. Write two paragraphs discussing the relationships between price and demand, and supply and demand.
Ask at least five people of various ages the following questions: Do you believe the economy is in dire straits? Why or why not? What do you see as the outcome of the current downturn? How are you directly affected, and what worries you about the state of the economy? Do you believe it can be "fixed"? If so, how?
Answers
Answer:
Explanation:
In other words, the higher the price, the lower the quantity demanded. The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good.
____ are examples of public goods provided by the government. They are accessible to all (even those
who do not pay to use them) and can be used by many people at once.
Roads, mail delivery, and education
Your computer, house, and car
Getting a haircut, eating out, and clothes
Answers
Roads, mail delivery, and education
are examples of public goods provided by the government.
In a two-state world, where there are only two possible payoffs on a share of stock at the end of a year, the stock payoffs can be exactly duplicated using a combination of a call option on the stock and _____.
Answers
"In a two-state world, where there are only two possible payoffs on a share of stock at the end of a year, the stock payoffs can be exactly duplicated using a combination of a call option on the stock and risk-free asset."
A risk-free asset is one with a guaranteed future return and almost little chance of loss.
Bonds, notes, and particularly Treasury bills are issued by the U.S. Department of the Treasury.
These are regarded as risk-free investments because they are backed by the "full faith and credit" of the American government.
The return on risk-free assets is very close to the present interest rate because they are so safe.
Therefore "In a two-state world, where there are only two possible payoffs on a share of stock at the end of a year, the stock payoffs can be exactly duplicated using a combination of a call option on the stock and risk-free asset."
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in providing a legal framework, the government multiple choice usually avoids implementing a patent system. expands the size of the criminal justice system. discourages publishers of textbooks from applying for copyrights. protects the ownership of private property to encourage the private sector.
Answers
In providing a legal framework, the government Protects the ownership of private property to encourage the private sector.
What is Government?Government is the ruling party of a country, government plays a vital role in the economic situation of a country.
The government encourages the private sector to ensure more investments from individuals, and that is why the government protects the rights of private property and as a result invites more investment in the economy of the country.
Government have the power and can enforce the rights of individuals issuing legal framework. It is highly recommended to encourage the private individuals for rapid growth of the economy.
There are some countries in the world where even the government organizations are privatized to sustain.
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you own 100 shares in each of three companies, each company pays a dividend. gillete pays 1.15 per share in dividends, general electric pays .79 per share in dividends and hersheys food pays .84 per share in dividends how much do you collect from all 3 companies in dividend
Answers
Answer:
$278
Explanation:
100 * 1.15 = $115
100 * .79 = $79
100 * .84 = $84
$278
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The following cost curves show the costs for a firm's t-shirt production. ... firm's breakeven point is at a price of______. a.)$20 b.)$14 c.)$26 d.)$24.
Answers
The cost curves show the costs for a firm's t-shirt production. firm's breakeven point is at a price of $24 .
Economic responsibility is the ___________ responsibility of a business enterprise as it relates to production of goods and services according to the needs and wants of the society.Immersive Reader
(1 Point)
Sole
Primary
Secondary
Last
Answers
Answer:
primary
Explanation:
as it relates to the prime factors of business and means of production
can anybody help me please i will mark brainlyest
Answers
and electrical light
Explanation:
telephone: it allowed for instant
communication, communication by voice,
and it paved the way for future inovations
in telephone technology.
engine: it was powered by gas and air,
which made it impractical for widespread
public use.
light: Electric lights allowed factories to stay
open longer and produce more goods.
DATA - All Single Tax Filers Employee A earned $35,700 for the year (2020). Employee B earned $75,700 for the year (2020). Employee C earned $199,000 for the year (2020). Employee D earned $224,600 for the year (2020).
Answers
The total tax would be $50,285.88. Therefore, Employee A would pay $4,206.50 in taxes for the year, Employee B would pay $12,554.74 in taxes for the year, Employee C would pay $41,831.72 in taxes for the year, and Employee D would pay $50,285.88 in taxes for the year.
When we say "single tax filers", we are referring to people who have no dependents and are not married.
Tax is a mandatory financial contribution that citizens make to the government. It's used to fund public services such as healthcare, education, infrastructure, and others.
In the United States, the amount of tax that a person owes is determined by their income and filing status.
The tax rates range from 10% to 37%.
Here's how the tax would be calculated for each employee based on their income in 2020:
Employee A earned $35,700. The first $9,875 is taxed at 10%, which equals $987.50.
The next $9,876 to $40,125 is taxed at 12%, which equals $3,219.
The total tax would be $4,206.50.
Employee B earned $75,700.
The first $9,875 is taxed at 10%, which equals $987.50.
The next $9,876 to $40,125 is taxed at 12%, which equals $3,219.
The next $40,126 to $75,700 is taxed at 22%, which equals $8,347.24.
The total tax would be $12,554.74.
Employee C earned $199,000.
The first $9,875 is taxed at 10%, which equals $987.50.
The next $9,876 to $40,125 is taxed at 12%, which equals $3,219.
The next $40,126 to $85,525 is taxed at 22%, which equals $9,341.98.
The next $85,526 to $163,300 is taxed at 24%, which equals $18,138.24.
The next $163,301 to $199,000 is taxed at 32%, which equals $10,144.
The total tax would be $41,831.72.
Employee D earned $224,600.
The first $9,875 is taxed at 10%, which equals $987.50.
The next $9,876 to $40,125 is taxed at 12%, which equals $3,219.
The next $40,126 to $85,525 is taxed at 22%, which equals $9,341.98.
The next $85,526 to $163,300 is taxed at 24%, which equals $18,138.24.
The next $163,301 to $207,350 is taxed at 32%, which equals $13,104.16.
The next $207,351 to $224,600 is taxed at 35%, which equals $5,495.
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Which of the following is NOT part of an ethnographic approach to customer observation?
a. Learn from observation. b. Explain what was observed. c. Develop a plan. d. Test the theory. e. Develop a hypothesis
Answers
The correct option is option (c) Develop a plan. Develop a plan is not part of an ethnographic approach to customer observation.
An ethnographic approach to customer observation involves observing customers in their natural environment, learning from those observations, developing a hypothesis, testing the theory, and explaining what was observed. The focus is on understanding customer behavior, attitudes, and motivations. Developing a plan is not necessarily a part of this approach as the goal is to capture real-world behavior rather than imposing a preconceived plan or design. Ethnographic research is an important tool for businesses to gain insight into customer needs and preferences, and it can lead to the development of more effective marketing strategies, products, and services. By observing customers in their natural environment, businesses can gain a deeper understanding of how their products or services fit into customers' lives and how they can better meet their needs.
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which characteristic is found in a perfectly competitive market?
Answers
The characteristic found in a perfectly competitive market is "homogeneous products."
A perfectly competitive market is characterized by the presence of homogeneous products, where all firms in the market produce identical or indistinguishable goods or services.
In a perfectly competitive market, all sellers offer products that are essentially the same in terms of quality, features, and performance. This characteristic implies that consumers perceive no difference between the products offered by different sellers. They are considered perfect substitutes for one another.
The presence of homogeneous products in a perfectly competitive market has several implications.
1. Price Taking Behavior: Since the products are identical, buyers have no reason to prefer one seller over another based on product differentiation. As a result, buyers become price takers, meaning they accept the prevailing market price determined by the overall supply and demand conditions. Individual sellers do not influence the market price and must accept it as given.
2. Perfect Information: Buyers have perfect information about prices and product characteristics in a perfectly competitive market. They are aware of all available options and can easily compare prices and make informed decisions. Perfect information allows buyers to make rational choices based solely on price, leading to efficient allocation of resources.
3. Ease of Entry and Exit: Homogeneous products also facilitate easy entry and exit of firms in the market. Since there are no product differentiation barriers, new firms can enter the market and offer the same product as existing firms. Similarly, if firms are making losses or facing unfavorable market conditions, they can exit the market without any significant barriers.
4. Intense Price Competition: With homogeneous products, firms in a perfectly competitive market cannot differentiate their products based on quality or features. As a result, the primary basis for competition becomes price. Firms strive to offer the lowest possible price to attract buyers and gain a competitive edge. This intense price competition helps ensure that prices in the market are driven down to the minimum efficiency level.
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The two major benefits that arise from the market system's restriction of business risk to owners and investors are:________
Answers
The key advantage of risk management for those involved is that it makes it possible for the project to run smoothly. The possibility of achieving desired results is raised, decision-making is facilitated, and responsibility is distributed to risk owners.
Greater emphasis on regulatory outcomes, resources, and actions across the entire organization. Greater adaptability to changing circumstances increased transparency through accountability and transparent results.
Risk stakeholders are the individuals who are (or believe they are) impacted by a choice, course of action, tactic, or procedure. A stakeholder may change at any point during the process and might be an individual, an organization, or a grouping within an organization, such as the management.
The two major benefits that arise from the market system's restriction of business risk to owners and investors are Risk Management
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Which collection instrument do businesses generally use to conduct surveys? Businesses usually use a collection instrument such as a BLANK to collect market research data through surveys.
Answers
Answer:
questionnaire
Explanation:
A questionnaire is basically a survey, only that it is a much fancier term. Surveys and questionnaires are basically synonyms, and are both used to gather primary information, i.e. first hand information directly form the source. They are the most commonly used research tools.
Why are 8th-grade girls in Fremont so foul? bet no one knows.
Answers
Answer:they moody teens who think everything is about them and so rude
Explanation:
Answer:
abcdefghhijklmnopqrstuvwxyz
PLEASE GIVE BRAINLIEST PLESAE I NEED PLESAEEEEEEEEEEEEEEEE
Quantities of products manufacturers are willing to sell at different prices is known as.
Answers
Quantities of products that manufacturers are willing to sell at different prices is known as supply, which has an inversely proportional weight in establishing the price.
Law of offerIn economics, the law of supply is directly influenced by demand, so the greater the supply, the lower the price.
The supply curve is graphically represented by a positive slope, in the price and quantity relationship, because the higher the price of a product or service, the greater the quantity produced, therefore, there is a constancy in the supply curve.
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John wants to purchase a car through an online auction site. The auction site offers buyer protection if the transaction begins and ends on the site itself, and if payment is made through the site. However, the seller says that he is in the military and often does not have internet access, so he instructs John to mail him gift cards that cover the total purchase price. John pays, but the car never arrives. Is this fraud? Why or why not? What should John do?
Answers
Yes, it's probably fraud. The seller's request for gift cards as payment for the vehicle is highly suspicious and is not an accepted method of payment.
Although John pays, the car never shows up. Is this a scam? If not, why not? What ought John to do?Additionally, any buyer protection that John may have had is nullified because the transaction was carried out outside of the auction site's platform. It is crucial to always carry out transactions through a reliable and trustworthy platform and to never send payments using unconventional means. John must notify the customer support staff of the auction site right away and provide all pertinent information, including the seller's contact information and any correspondence that may have taken place between them. He should also get in touch with the company that issued the gift cards to see if there is any way to get his money back.
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Which of these scenarios would lead to an industry requiring more productive workers?
A. Supply of goods increases, and demand for goods decreases
B. Supply of good decreases, and demand for goods increases
C. Supply of goods increases, and demand for goods remains the same
D. Supply of goods decreases,and demand for goods remains the same
Answers
Answer:
B- Supply of goods decreases, and demand for goods increases.
Explanation:
I took the quiz
Answer:
Supply of goods decreases, and demand for goods increases.
do any product sub-categories have sales over $75,000, but are not bringing in positive profits? show a quick filter to filter through each category.
Answers
By applying these filters, you can easily identify the product sub-categories with sales over $75,000 that are not bringing in positive profits.
To determine if any product sub-categories have sales over $75,000 but are not bringing in positive profits, you can create a quick filter in a data analysis tool like Excel or Tableau. First, import your data containing product sub-categories, sales, and profits information.
To create a quick filter, follow these steps:
1. Sort the data by sales in descending order to focus on the sub-categories with sales over $75,000.
2. Apply a filter on sales column with criteria "> $75,000" to display only sub-categories with sales exceeding $75,000.
3. Apply another filter on profits column with criteria "< 0" to display only sub-categories with negative profits.
By applying these filters, you can easily identify the product sub-categories with sales over $75,000 that are not bringing in positive profits. Analyzing this filtered data will help you pinpoint areas for improvement and optimize the product portfolio for better profitability.
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In which period of industrial revolution industries experienced the need of selling function
Answers
Answer:
Industrial revolution industries experienced the need of selling function is explained below in details.
Explanation:
The Industrial Revolution converted economics that had been based on cultivation and craftsmanship into markets based on large-scale manufacturing, mechanized production, and industry arrangement. New instruments, new energy sources, and new forms of creating a product made present industries more fruitful and effective.
John from sales has just sent you an e-mail. He needs a decision made on the Johnson account as soon as possible. You can make the decision, but you feel like you’d like to ask your boss for her advice. Unfortunately, she is in a business meeting, and the decision needs to be made very soon. You decide to take the initiative and ______.
a.
Interrupt your boss to make the decision
b.
Ask a coworker to make the decision
c.
Wait to make the decision
d.
Make the decision
Answers
Answer:
D. Make the decision
Explanation:
The decision needs to be made as soon as possible. Answers B and C both require extra time, which is not an option here. That leaves A and D as possibilities. Answer A makes the least sense of the 4 options (as it would be extremely unprofessional to interrupt a meeting), leaving D as the only reasonable choice.
Cathy, Don, and Ethel are partners in Fruit Orchard Farms. Cathy gives notice to quit the firm, which otherwise continues to do business. This is
Answers
When a partner does what Cathy did and the partnership continues regardless, this is known as a Dissociation.
A Dissociation in a partnership:
Means that a partner no longer wishes to be part of a partnership The partner loses their management rights Might not absolve the partner of partnership liabilitiesBecause the business kept going even after Cathy gave notice to quit, this is known as a dissociation and not a dissolution which would have ended the partnership.
In conclusion, this is a dissociation.
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An auditor ordinarily sends a standard confirmation request to all banks with which the entity has done business during the year under audit, regardless of the year-end balance. One purpose of this procedure is to:
A. seek information about loans from the banks.
B. detect kiting activities that may otherwise not be discovered.
C. request that a cutoff bank statement and related checks be sent to the auditor.
D. provide the data necessary to prepare a proof of cash.
Answers
Answer:
A. seek information about loans from the banks.
Explanation:
A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.
Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.
An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.
An auditor ordinarily sends a standard confirmation request to all banks with which the entity it is auditing has done business during the year under audit, regardless of the year-end balance. One purpose of this procedure is to seek information about loans from the banks so as to examine and verify the amount that was loaned by the bank to the business entity, as well as comparing the figures (values) to that on the balance sheet.
Under what temperature will the volume of the gas at 0°C double itself if
the pressure is kept constant?
Answers
Let the volume of the gas at 0°C = Vml.
over who has prionty of tha car. Whict of the following is true aeder Article 9 of the t/C C ? a The crectilor will have pricrap of the car only it the credior has a ta. The crctitor will have peicerity or the car even if the cralitir eoly has The wour was sill bave
Answers
According to Article 9 of the Uniform Commercial Code (UCC), the creditor has priority over the car when the debtor has not paid the loan or borrowed money, and the car is used as collateral.
The creditor will have a security interest in the car in the event of default by the borrower. In other words, if the borrower fails to repay the loan, the creditor has the right to seize the car and sell it to recover the outstanding balance. Even if the debtor still owes money to the lender, the creditor has priority over the car.
In summary, the creditor will have priority over the car if the debtor fails to pay back the loan and the car is used as collateral. In this scenario, the creditor has a security interest in the car that gives them the right to seize and sell it in the event of a default by the borrower.
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4,900 what was the balance in work in process inventory on january 1 if this was the only unfinished job?
Answers
To determine the balance in work in process inventory on January 1, we need more information. Specifically, we need to know the costs associated with the unfinished job, such as direct materials, direct labor, and manufacturing overhead.
Without this information, we cannot calculate the exact balance in work in process inventory.
The provided content seems to be incomplete. It mentions the number "4,900" but doesn't provide any context or further information to understand its significance. Additionally, it refers to a work in process inventory and an unfinished job, but no specific details or calculations are given to determine the balance in work in process inventory on January 1.
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What ethical dilemmas do you think professionals in the marketing and advertising industry face? Explain.
Answers
Answer:
knowing how to play on emotions but also not make people feel like terrible human beings?
Explanation:
To address inconsistencies and weaknesses, a comprehensive revenue recognition model was developed entitled theA) Revenue Recognition Principle.B) Principle-based Revenue Accounting.C) Rules-based Revenue Accounting.D) Revenue from Contracts with Customers.
Answers
A thorough revenue recognition model known as the Revenue from Contracts with Customers was designed to overcome shortcomings and inconsistencies. Therefore, D) Revenue from Contracts with Customers is the right answer.
The accrual accounting concept of revenue recognition states that rather than when cash is received, revenues must be recognised when they are generated and realised.
Revenue recognition is a type of generally accepted accounting principle (GAAP) that outlines the specific conditions for when and how to record revenue. Revenue is often realised when an important event happens, and the firm can easily measure the financial amount. Revenue is the cornerstone of every corporate performance. The cornerstone is the sale. Regulators are aware of how enticing it may be for companies to stray from what is considered to be income, particularly when not full payment is made until the job is complete.
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What is location analysis
Answers
Answer:
Location analysis is a technique for discovering, assessing and specifying the optimal placement of an organization's people, information, activities, and materials.Location models are key in performing location analysis by providing a well-documented common vision of current and desired location arrangements.
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Answers
Answer:
A. Traditional model
Explanation:
The strategic planning model refers to methods used by companies in setting goals, making decisions and implementing them within their organizations. The traditional or basic model is used by companies with no clearly defined methods of operation. They begin by defining the mission and vision of the company and develop ways to achieve these goals.
They monitor the goals they have set overtime to evaluate the progress they have so far made. The organizations adopting this model might have never done extensive projects before.
explain the effect of climate change in the economy of nepal
Answers
Nepal suffers excessive monetary expenses because of modern weather variability and extremes: the envisioned direct cost of those influences is equal to 1.5–2% of modern GDP/year. This is excessive via way of means of global levels.
What is the climate of Nepal?The weather in Nepal varies from subtropical withinside the lowlands to chilly excessive-altitude weather withinside the mountains.
The country reports five unique seasons: summer, monsoon, autumn, iciness, and spring. During iciness, the Himalayas block the cold air, inflicting it to be pretty heat south of the Himalayas.
Therefore, Nepal suffers a huge economic loss due to the climatic conditions prevailing in the country.
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