Business, 17.06.2020 00:57 dantwanlarosa85

Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. 1. Which of the following are arguments in favor of active stabilization policy by the government?
A. Businesses make investment plans many months in advance.
B. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
C. The current tax system acts as an automatic stabilizer.
D. Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president.
2.Which of the following are examples of automatic stabilizers?
A. The federal funds rate.
B. Unemployment insurance benefits.
C. Corporate income taxes.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 06:10

Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) wacc %

Answers: 2

Answer

Business, 22.06.2019 07:30

Why has the free enterprise system been modified to include some government intervention?

Answers: 1

Answer

Business, 22.06.2019 20:40

Robert owns a life insurance policy that he purchased when he first graduated college. it has a $100,000 death benefit and robert pays premiums for it every month out of his checking account. the insurance robert has is most likely da. permanent life insurance o b. term life insurance o c. group life insurance o d. individual life insurance

Answers: 1

Answer

Business, 22.06.2019 21:00

After hearing a knock at your front door, you are surprised to see the prize patrol from a large, well-known magazine subscription company. it has arrived with the good news that you are the big winner, having won $21 million. you have three options.(a) receive $1.05 million per year for the next 20 years.(b) have $8.25 million today.(c) have $2.25 million today and receive $750,000 for each of the next 20 years.your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.

Answers: 3

Answer

You know the right answer?

Using policy to stabilize the economy The government has the ability to influence the level of outpu...

Questions