The expected result of a domestically directed expansion is increased revenue at AD, increased prices and production in the short term.
What would be the effects of a domestic-led expansion?The effects of a domestic-led expansion would be the following chain events:
1. Increase in income level.
2. Increase in AD.
3. Increase in the price level and production in the short term.
On the other hand, in the situation in which the government increases spending, the following effects would occur:
1. A budget deficit occurs.
2. The government borrows money from the open market.
3. The demand for loanable funds is increased.
4. The interest rate is increased.
5. Reduces or eliminates private investment.
6. Economic growth is negatively affected.
In another situation, when taxes are increased, effects such as:
1. Disposable income decreases because taxpayers' spending capacity decreases and their consumption decreases.
2. The decrease in consumption decreases the AD which decreases production and the price level which is unfavorable for the economy.
On the other hand, when government indebtedness increases, the GDP-Debt ratio increases and the government's responsibility to repay the loan in the future increases, and the government increases taxes to increase revenue to repay its loan.
This has long-term negative economic effects because the consumer's perception is changed due to fear of high taxes in the future.
Another negative effect occurs when the government increases purchases abroad because this stimulates imports and discourages net exports.
What are the effects of an export-led one?The effects of an export-led one occur when growth is driven by exports (due to a change in Y * or a currency devaluation); the effects of this would be:
1. Increase in AD
2. Increase in production and price level.
3. When exports increase, the demand for the national currency increases and strengthens the national currency.
What conclusion can be drawn from these dynamics?Based on the information above, it can be inferred that during a country-led expansion (due to a change in G or T), the central bank needs an expansionary monetary policy to decrease interest consumption to increase private investment spending. . On the other hand, a domestically driven expansion that is export driven (due to a change in Y* or a currency devaluation) increases AD and increases output and the price level.
So here the central bank adopts a contractionary monetary policy which decreases the money supply and controls inflation which rises due to the increase in price level.
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how to calculate absolute advantage
The capacity to use a given amount of inputs to generate the same number of units of an item or service as another producer (output).
What does a resource mean?
A inherent source of income or income, which is most often used in plural. A natural phenomena or trait that enhances the standard of human existence; frequently used in plural.
What purpose do resources serve?
For the reasons listed below, resources are essential for people: Human needs and comforts are met when resources are employed as a raw material. Agriculture depends on natural resources, which increases its economic significance. They also present chances for employment.
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Using the Base Case, calculate total depreciation expense for the year 2023E. Assume that depreciation expense on assets pre-2020E is $7,500 per year. Depreciation on capital expenditures made from 2020E-2024E assumes a 4-year useful life and a salvage value equal to 10% of the original cost.
The depreciation for the year that will be calculated for 2023E is $25500.
How to calculate the depreciation?Depreciation simply has to do with wear and tear of an asset. From the information the following can be deduced:
Capital expenditure = $20000
Salvage value = 10%
Useful life = 4 years
The salvage value will be:
= 10% × $20000
= $2000
The annual depreciation will be:
= Capital expenditure - Salvage value Useful life
= ($20000 - $2000) / 4
= $45000
Depreciation for 2023E will be:
= $7500 + ($4500 × 4)
= $25500
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What is the role of the individual in a mixed economy?
Private persons are permitted can own and control part (if not all) of the production components in a mixed system.
What exactly is an economy?A series of connected production and consuming activities that are generally referred to as the economy ultimately decide how resources are distributed within a society. The individuals who live nearby and do business there are satisfied by the production activities and consumption of items on a general level.
What do you call the current economic climate?The American economy seems diverse and has components of both capitalism and socialism. Such a capitalist market supports this same free market owing to the use of capital, but it also allows for government engagement for something like the greater good.
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Is it better for a country to have an absolute advantage or comparative advantage?
Absolute advantage is the ability to produce an increased number of goods and services at better quality than competitors. In contrast, Comparative Advantage signifies the ability to manufacture goods or services at a relatively lower opportunity cost.
competition is a rivalry wherein or extra parties try for a not unusual purpose which can't be shared: wherein one's advantage is the other's loss (an example of that's a 0-sum recreation).[1] opposition can get up among entities such as organisms, people, economic and social companies, and so on. The competition may be over attainment of any distinctive intention, which include popularity.
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What are 4 things you should consider before opening a checking account?
Four things you should consider before opening a checking account: Insurance, Minimum deposit requirements, Fees, and ATM network.
A bank account is a relatively liquid kind of transaction account with a bank or other monetary firm that permits the holder to make deposits and withdrawals. Checking debts are designed to be used daily, making an allowance for numerous deposits and withdrawals, in place of much less liquid financial savings or funding debts.
Checking account: A checking account offers clean get entry to your cash to your everyday transactional wishes and enables maintain your coins relaxed. customers can generally use a debit card or assessments to make purchases or pay bills. accounts may additionally have special alternatives to assist keep away from the month-to-month service fee.
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What is fixed expenses and variable expenses?
Rent, house payments, and auto payments are examples of fixed expenses that typically cost same amount per month, whereas variable expenses fluctuate from month to month.
What is meant by fixed expenses?Fixed costs are costs that do not alter depending on the activity level. These costs often don't change much more from month - to - month and are relatively constant. Advertising, dues, plan assets, insurance, and rent are a few examples of fixed expenses.
Where are the fixed expenses?Any expense that is constant throughout time, such as rent or mortgage payments, utility bills, including loan payments, is referred to as a fixed expense. Although the amounts might vary slightly—as with utilities—you are aware that they are regularly due.
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if argentina suffers from capital flight, argentinean domestic investment and argentinean net exports will both decline. a. true b. false
If Argentina suffers from capital flight, Argentinean domestic investment and Argentinean net exports will both decline is a false statement.
What happens to net exports when domestic income increases?The acquisition of all newly produced structures, changes in business inventories, and the purchase of equipment by businesses all constitute gross private domestic investment. Additionally, they rely on the real exchange rate: International demand for home goods declines as domestic goods become more expensive relative to foreign commodities.
Therefore, exports decline when real exchange rates rise. Exports rise in response to an increase in foreign income. A crucial aspect of calculating net exports is the foreign demand for a nation's goods and services, which varies with foreign earnings. Net exports and overall demand increase in countries with rising foreign incomes; in countries with declining foreign incomes, these two factors decrease.
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which costing method can be helpful to management in setting prices because it reflects full costs that sales must exceed for the company to be profitable?
The absorption cost data is helpful since it displays the total expenses that the firm must exceed in order to be profitable. Hence, the correct answer is absorption cost.
What does absorption costing mean?The total absorption costing accounting technique considers the overall cost of producing an item or providing a service. TAC includes all production overheads, whether "fixed" or "variable," in addition to material and labor expenses. Each cost center might be connected with both direct and indirect expenses. Direct costs may be easily found by using particular cost centers. In contrast, it is difficult to link a cost center to indirect expenses. The term "association" refers to how overhead is distributed among departments. Primary apportionment, often known as distribution, is a mechanism for allocating overheads to production and service divisions.
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When price and quantity move the same direction it is the law of ?
Quantity and price move along one track in a similar direction, in accordance with the law of supply.
The Law of Supply: What Is It?This law of supply is indeed a microeconomic principle that asserts, with all other things being equal, that if the cost of an item or service rises, suppliers will offer more of those goods or services, and vice versa. The supply-and-demand curve that Alfred Marshall created in 1890 for his Principles of Economics is still used to show the point where the market is in equilibrium.
What makes the law of supply crucial?It offers the key price determination model used during economic theory, According to this economic theory, in a market that is competitive, if all other parameters remain constant. The interplay between the amount of a particular commodity that is supplied and the amount that is wanted will decide the price.
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Which type of biomass energy can be produced from garbage heaps?
A.
ethanol
B.
biodiesel
C.
methane
D.
gasoline
According to the research, the correct answer is Option C. The type of biomass energy that can be produced from garbage heaps is Methane.
What is Methane?It is a molecule found in the earth's atmosphere, being the main component of natural gas and used mainly to produce light and heat.
In this sense, organic waste creates methane by decomposing in garbage heaps and can be introduced into the atmosphere by natural processes, retaining the heat generated by solar radiation and raising the temperature of the atmosphere.
Therefore, we can conclude that according to the research, methane under normal conditions of temperature and pressure appears as a gas and is produced by the decomposition of organic matter.
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What is the name of the international institution that governs more than 80% of world trade membership and can enforce its provisions?
Governments and municipal territories that make up the World Commerce Organization (WTO) establish, implement, and uphold the international standards for trade among themselves.
What does provision provide as a means of?A provision is money set aside in the accounts to pay for any liabilities in the future. A provision is used to account for costs that may, to some measure, be compensated for in the current or preceding financial year, improving the accuracy of the balance for the current year.
What preparations should be made?A lease agreement known as a "business make good term" demands that the tenant hand the keys to the house in the same state that she or he found it.
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Suppose that unusually hot weather causes the demand curve for ice cream to shift to the right. Why
will the price of ice cream rise to a new market clearing level?
The price of the ice cream would lead to the new clearing ground due to the fact that increased demand would bring about the raise in price of the good.
How does demand cause price to increase?Although the impact on the equilibrium quantity cannot be determined, a rise in demand and a decrease in supply will result in an increase in the equilibrium price. 1. Consumers now place a higher value on goods, and producers must charge a higher price to offer the goods; as a result, prices will rise for all quantities.
According to the rule of supply and demand, prices are likely to increase when there is a greater demand than there is for an item or service. In these situations, suppliers frequently produce more in order to meet demand and seize margin possibilities.
When demand is constant, there is an inverse relationship between supply and prices of products and services.
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What 5 steps would you take to open a bank account for a client?
Steps for opening a bank Account:
choose a financial institution.
visit the financial institution or its website.
pick out our banking product.
provide our records and files.
conform to phrases and conditions.
Banks also can require us to finish a utility for a brand new account. This means offering extra records along with our physical address, smartphone quantity, and electronic mail cope with in case we are beginning a joint account, that individual additionally has to offer their identity and Social safety range.
When we open our account, make certain we have got a government-issued id to prove our identity. We will additionally want our Social safety range or personal taxpayer identification number, together with something that has our cop on it, such as a utility or cable bill.
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if a company uses a strategy of coordinating all media and messages focused at the consumer to provide a clear and persuasive message this is called?
If a company uses a strategy of coordinating all media and messages focused at the consumer to provide a clear and persuasive message this is called Integrated marketing communications.
What is meant by integrated marketing?The IMC is a "branded interaction meant to ensure that all brand contact a customer or prospect receives about a product, service, or organization is relevant to that individual and consistent across time," according to the American Marketing Association. defined as the process of planning. For the purpose of narrating stories and disseminating ideas, we use several media types, or channels. An excellent TV advertisement can serve as the launchpad for an integrated marketing effort.
To provide a seamless, customer-focused experience, integrated marketing combines all aspects of marketing communications, including public relations, social media, and advertising. This implies that your message should appear the same and sound the same across all platforms.
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what is the importance of international trade
International commerce enables countries to expand their markets and get access to commodities and services that might otherwise be unavailable locally.
The market has become more competitive as a result of international commerce. This ultimately leads to more competitive pricing and a lower-cost product for the consumer.
Trade is a growth engine that creates employment, lowers poverty, and expands economic opportunity. The World Bank Group assists its clients in improving their access to developed-country markets and increasing their engagement in the global economy.
Trade helps to improve global efficiency. When a country opens up to commerce, capital and manpower flow to businesses that make better use of them. This movement raises the standard of living in society. These impacts, however, are only a portion of the narrative.
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What is the direct financing?
Direct financing occurs when you request for a loan from the same lender—typically a bank or other financial institutions.
If you choose direct financing, the dealership will provide you with information on your specific loan or interest rate as well as the total amount you must pay there. Two of the key advantages of direct finance are its versatility and customizability. You can fill out as many loan applications as you'd like, either before or after shopping. Plus, you have total control over the process when dealing with a lender directly.
One disadvantage of direct funding is that it often takes more time. You should also do some research to determine your best possibilities.
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What is the 14th 15th and 16th Amendments?
Answer:
The 13th Amendment abolished slavery. The 14th Amendment gave citizenship to all people born in the US. The 15th Amendment gave Black Americans the right to vote.
Explanation:
if the government purchases multiplier is 4.5 and a change in government spending leads to a $18.5 million decrease in aggregate demand, we can conclude that
Given the government purchases multiplier and the change in government spending, we can conclude that the government reduced purchasing by $4.11 million.
What does the government purchases multiplier show?The government purchases multiplier is used to determine how much aggregate demand will change if there is a change in government spending.
The formula from which to get the government purchases multiplier is:
Change in aggregate demand = Government purchases multiplier x Change in government purchases
If the government purchases multiplier is 4.5 and the change in aggregate demand is - $18.5 million, then the change in government purchases is:
= - 18.5 million / 4.5
= - $4.11 million
This is a decrease in government purchases.
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When a country can produce a good more efficiently than another nation this is called _____?
Absolute advantage occurs whenever one country produces a good more effectively than another.
What is an example of an absolute advantage?Consider California and Mexico as two nations that produce tequila and wine, respectively. Off to the right, a list of the goods that each country can create is presented. As you can see, California has a clear edge in creating both items because it can produce more of everything.
How is absolute advantage determined?Low-cost production enables the achievement of an absolute advantage. In other senses, it describes a person, business, or nation that has cheaper production costs. When (in comparison to rivals): Fewer materials are required to make a product, such an advantage is developed.
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which of the following statements best describes how productivity relates to activity?
The statement "Productivity is an activity that leads to making progress." best describes how productivity is related to activity.
Give a brief account on productivity.Productivity in economics can be regarded as the ratio of output to input, which might include labor, capital, or any other kind of resource. The economy is typically measured as a ratio of hours worked to gross domestic product (GDP). By further subdividing labor productivity, it is feasible to investigate trends in wage levels, salary growth, and technological development. An increase in productivity has a direct impact on business profits and shareholder returns.
Productivity is a gauge of a company's internal manufacturing process effectiveness. It is determined by dividing the quantity generated by the number of units produced or by dividing the company's net sales by the number of employee labor hours. Productivity is the primary force behind economic growth and competitiveness.
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The complete question is mentioned below :
Which of the following statements best describes how productivity relates to activity?
A. Productivity is the opposite of activity.
B. Productivity and activity are identical.
C. Productivity is an activity that can be replicated by other people.
D. Productivity is an activity that leads to making progress.
Is assessed value same as fair value?
Although assessed value is frequently based on a portion of fair market value (what the property could sell for), it is not the same as this figure.
What is fair value?The projected price at which an object is purchased or sold when the buyer and seller voluntarily agree on a price is known as fair value. The fair value of an asset can be calculated by comparing the item's present market worth, growth potential, and replacement cost. Fair value is an objective and logical estimation of the potential market price of a good, service, or asset. It is used in accounting and by the majority of schools of economic thought.
How do you calculate the fair value and how you determine it?Here, cash represents the security's current value, r the broker's current interest rate, x the number of days remaining in the contract, and dividends the amount of dividends the investor will get prior to the expiration date. Cash [1 + r(x/360)] = Fair Value the dividends
The same underlying assumptions and asset or liability characteristics are used to calculate it as market participants would. These features include the asset's state, location, and any limitations on use or sale.
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Does high inflation mean bad economy?
What is fiscal policy provide an example?
The two main tools for implementing fiscal policy are taxes and spending. By establishing spending requirements for the government and the general public, taxes have an impact on the economy.
To promote consumer spending, the government can, for instance, decrease taxes. Governments might, for instance, lower taxes and increase expenditure to boost the economy if necessary; typically, they invest in infrastructure and social programmes that create jobs and income. Alternatively, a government may decide to reduce spending while increasing taxes if the economy is doing well. Public spending and taxation are used in fiscal policy to influence the economy, particularly macroeconomic conditions.
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What are examples of regulatory issues?
The examples of regulatory issues are given below:
1. Data privacy laws such as the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) in the US.
2. Environmental regulations such as the Clean Air Act, the Clean Water Act, and the Endangered Species Act.
3. Antitrust laws that seek to prevent monopolies and promote competition.
4. Financial regulations such as the Dodd-Frank Wall Street Reform and Consumer Protection Act.
5. Labor regulations such as minimum wage laws and workplace safety standards.
6. Intellectual property laws such as copyright, trademark, and patent laws.
What is regulatory?
Something like this that holds you to a rules is referred to as regulatory. The same applies to other forms of punishment, including detention. Your mother is being controlling when she forbids you from running through the house. You'll see that the word regulate is mostly in the regulatory form. This is due to the fact that everything that is regulated is regulated. Another word that comes to mind is probably "regular." Regulations, such as being required to stay inside during recess, are put in place to maintain order, which includes not breaking any laws or regulations. Regulations are put in place to prevent you from acting inappropriately.
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dollar diplomacy examples
Dollar diplomacy sought to bolster the suffering economies of Latin American and East Asian international locations at the same time as additionally expanding U.S. commercial pursuits in one area. U.S. interference in Nicaragua, China, and Mexico as a way to shield American hobbies are examples of dollar diplomacy in action.
Dollar diplomacy relations, foreign coverage created by means of U.S. Pres. William Howard Taft (served 1909–13) and his secretary of the kingdom, Philander C. Knox, to make certain the economic balance of a location whilst defensive and extending U.S. business and financial hobbies there.
From 1909 to 1913, President William Howard Taft and Secretary of kingdom Philander C. Knox accompanied an overseas coverage characterized as "dollar diplomacy". It become a policy wherein Americans have an impact on what could be exerted mostly by means of American banks and economic interests, supported in part by means of diplomats.
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Do interest rates matter for credit cards?
Credit cards can cost you money if you don't pay your bills on time because the interest rates charged by lending organisations have a significant negative influence on both your personal finances and credit score.
The best credit card APR is one that is around 10%, but you might need to visit your neighbourhood bank or credit union to discover one. An APR that is lower than the average would also be regarded favourably by the Federal Reserve, which monitors credit card interest rates. If you settle your bill in whole each month, APR is irrelevant. It doesn't matter whether your credit card has a 10 percent or 25 percent interest rate.
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What is the difference between retail and consumer banking?
In contrast to corporate banking, which is the area of the banking sector that serves corporate clients, retail banking refers to the portion of a bank that actually deals with retail consumers.
An illustration of a banking group ?
Commercial banks, which provide a broad variety of consumer banking services, are one form of retail bank. Deposit certificates (CDs), saving and savings account, debit and credit cards, and other common services are just a few examples.
Differences between retail and business banking ?
Individuals can manage their daily finances with the help of retail banks, which offer loans, checking and term deposits, and other services. However, commercial banks provide services including bank deposits, financing, credit lines payment systems, and more to assist businesses in starting, running, and expanding.
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What happens when money supply changes?
Lower interest rates are often a result of increased money supply, which leads to more investment and more money in consumers' hands, which in turn boosts consumption.
In response, companies place larger orders for raw materials and boost output. The need for workers increases as economic activity increases. The opposite can happen if the money supply decreases or if its expansion pace slows. For a very long time, it has been believed that changes in the money supply are a significant factor in macroeconomic performance and business cycles.
Monetarism, Austrian Business Cycle Theory, and Irving Fisher's Quantity Theory of Money are three macroeconomic schools of thought that place a strong emphasis on the role of the money supply.
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What are the causes of business cycle?
The business cycle is caused by the forces of supply and demand—the movement of the gross domestic product GDP—the availability of capital, and expectations about the future. This cycle is generally separated into four distinct segments: expansion, peak, contraction, and trough.
Every nation's financial system fluctuates among intervals of enlargement and contraction. These modifications are brought on by ranges of employment, productivity, and the full call for and deliver of the nation's items and services.
In the short run, those modifications cause intervals of enlargement and recession. There are essentially crucial stages in a commercial enterprise cycle which can be prosperity and depression. The different stages which can be enlargement, peak, trough and recovery are middleman stages.
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scope of collective bargaining
The goal of unionisation is to reach an agreement on pay or other terms and circumstances of the employment contract between the employer and a team of people, or perhaps the entire workforce.
What serves as a means for provision?A provision is cash saved in the funds to cover any liabilities that may arise in the future. To improve the accuracy of something like the current year's balance, a provision is utilized to allow for costs that could, in some cases, be offset with in current or prior financial year.
Which preparations are required?A "business make better term" lease clause stipulates that the tenant must return the doors to the home in the same condition that they found it.
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