An expansionary fiscal policy will Question 4 options: always result in a budget deficit. always result in a budget surplus. sometimes result in a budget deficit. never result in a budget surplus. More information is necessary to answer this question.

Answers

Answer 1

Answer:

always result in a budget deficit.

Explanation:

Expansionary fiscal policy are policies undertaken by the government to increase the supply of money in the economy.

Tools of Expansionary fiscal policy are :

tax cuts

increased government spending

transfer payments.

A budget deficit occurs when government spending exceeds income.

If taxes are cut, revenue of the government would fall and this can lead to a budget deficit.

Also if the government increases its spending, spending can exceed income and this would lead to a deficit.

I hope my answer helps you


Related Questions

A new American graduate is contemplating buying a
Japanese, German, or an American car. No matter the type of car, he
plans to buy a new one at the end of 8 years.
The Japanese cars will cost $30,000 and have a fuel
usage of 23 Miles Per gallon (mpg) for the first 2 years and will
decrease by 3% per year thereafter. The repair cost will start at $700
per year, and increase by 3% per year. At the end of year 8, the
car can be sold for $5000. Insurance cost will be $700 for the
first year, increasing by 2% per year thereafter.
​A German car will cost $45,000 and have fuel usage
of 21mpg for the first 5 years, and decrease by 1% thereafter to
year 8. The repair cost will start at $1000 in year 1 and increase by
4% per year. It will have a salvage value of $7000 at the end of
year 8. Insurance cost will be $850 the first year, increasing by
2% per year thereafter.
The American car will cost $35,000 and have fuel
usage of 20mpg for the first 3 years and will decrease by 3% per
year thereafter. The repair cost will be $800 in year 1, increasing by
4% per year thereafter. Being an American, the graduate will price
the pride of owning an American car at $0.4 for every 20 miles
driven, increasing by 2% per year. Insurance costs will be $800 per
year increasing by 2.2% per year. The car can be sold for $5500 at
the end of year 8.
If the graduate anticipates driving 150000 miles by
the end of year 8 and the average interest rate is expected to
remain at 5% per year, which car is economically affordable based
on present worth analysis? Assume fuel cost will be $3 per gallon
in year 1 and increase by an average of 2% per year. Show all your
workings.​

Answers

Answer:

The best option is to buy Japanese Car.

Explanation:

Fuel usage per year is 150000/ 8 = 18750 miles per year

Fuel cost (year 1 -8) = $3.0, $3.06, $3.12, $3.18, $3.25, $3.312, $3.38, $3.5

Japanese Car:

Fuel usage 18750 / 23 = 815 * $3 = $2446

Fuel charges (year 1 -8) = $2445, $2494, $2623, $2758. $2900, $3050, $3207, $3372

Repair Cost (year 1 - 8) = $700, $721, $742, $764, $787, $811, $835, $860

Insurance cost (Year 1 - 8) = $700, $714, $728, $742, $757, $772, $788, $804

Present value of cost at 5% = 24674.07

Cost of car is $30,000

Total cost = $54674.07

American Car:

Cost $35,000

Fuel usage 18750/20 = 937.5 * $3 per gallon = $2812.5.

Fuel charges (year 1 -8) = $2812, $2913, $2986, $3011. $3098, $3124, $3176, $3208

Repair Cost (year 1 - 8) = $800, $894, $921, $978, $1109, $1176, $1207, $1301

Insurance cost (Year 1 - 8) = $800, $827, $876, $898, $908, $932, $954, $934

Present value of cost at 5% = 25302.18

Cost of car is $35,000

Total cost = $60302.

German Car:

Cost = $45,000

Fuel usage 18750 / 21 = 892 * $3 = $2678

Fuel charges (year 1 -8) = $2679, $2732, $2786, $2842. $2899, $2987, $3077, $3171

Repair Cost (year 1 - 8) = $1000, $1040, $1081, $1124, $1169, $1216, $1265, $1316

Insurance cost (Year 1 - 8) = $850, $867, $884, $902, $920, $938, $957, $976

Present value of cost at 5% = 27105.73

Cost of car is $45,000

Total cost = $72105.

Under SEC rules, internal controls over financial reporting (ICFR) are processes that provide reasonable assurance that financial reports are reliable. Which of the following is not assured by ICFR? A. Financial reports, records, and data are accurately maintained. B. Transactions are prepared according to GAAP rules and are properly recorded. C. Unauthorized acquisition or use of data or assets that could affect financial statements will be prevented or detected in a timely manner. D. IT controls that contain financial data are maintained.

Answers

Answer:

C. Unauthorized acquisition or use of data or assets that could affect financial statements will be prevented or detected in a timely manner.

Explanation:

Internal Control Financial Reporting is a framework designed to help companies manage their financial reporting and achieve the greater goals of risk assessment, control, information and communication, as well as monitoring. One of the weaknesses that could characterize ICFR is its inability to assure timely prevention and detection of unauthorized acquisition or use of data.

The scheme however ensures that financial records are maintained and that transactions are prepared according to GAAP rules. ICFR ensures that misstatements are detected in financial reporting.

Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $20,000 of legal services for a client. Hank typically requires his clients to pay his bills immediately upon receipt. Assume his marginal tax rate is 30 percent this year and will be 33 percent next year, and that he can earn an after-tax rate of return of 12 percent on his investments.a. What is the after-tax income if Hank sends his client the bill in December?After- tax income ?b. What is the after-tax income if Hank sends his client the bill in January? (Do not round intermediate calculations. Round "PV Factor" to 3 decimal places. Round your answer to 2 decimal places.)after-tax income ?c. Should Hank send his client the bill in December or January?DecemberJanuaryd. What is the after-tax income if Hank expects his marginal tax rate to be 25 percent next year and sends his client the bill in January? (Round "PV Factor" to 3 decimal places. Round your answer to 2 decimal places.)

Answers

Answer: a. $14,000

b. $14,106

c. January

2. $15,535

Explanation:

a. If Hank sends the bill in December.

Tax rate is 30% this year.

Amount is $20,000

After Tax Income = 20,000 * (1 - tax)

= 20,000 ( 1 - 30%)

= $14,000

b. If Hank pays Next year

Tax rate is 33%

After tax return rate of 12%

Amount is 20,000

Tax = 20,000 * 33%

= $6,600.

Because this is next year, the present value of the tax needs to be computed for better comparison.

With an after tax return of 12%, the PV will be,

= 6,600 * PV factor ( 12%, 1 period)

= 6,600 * 0.893

=  $5,894

The income therefore will be,

= $20,000 - 5,894

= $14,106

c. Hank should pay in January as he would make more income.

2. Tax rate is 25% next year and income is to be received next year.

Tax = 20,000 * 25%

= $5,000

PV of $5,000 = 5,000 * PV Factor (12%, 1 period)

= 5,000 * 0.893

= $4,465

After tax income = 20,000 - 4,465

= $15,535

Categories the following into Market economy and Non-market economy.
1. Prices are set by government agencies.
2. The invisible hand guides resources to their highest valued uses
3. Buyers and sellers are motivated by government directives.
4. Prices are set by supply and demand
5. Buyers and sellers are motivated by a sense of communal well- being.
6. Buyers and sellers are motivated by self-interest.

Answers

Answer:

Market economy:

2. The invisible hand guides resources to their highest valued uses

4. Prices are sey by supply and demand

6. Buyers and sellers are motivated by self-interest

Non-market economy:

1. Prices are set by government agencies

3. Buyers and sellers are motivated by government directives

5. Buyers and sellers are motivated by a sense of communal well-being

Explanation:

On the one hand, the concept of market economy refers to a type of economy system that basically indicates that the market will find the equilibrium and work properly without the help of the government and therefore it establishes that the economy does not need from the figure of the government and that this last one must worry only about the other issues that do not include the economy.

On the other hand, a non-market economy like its name indicates, it refers to the type of system that do consider that the presence of the government is very important for the correct system of the economy and all of its factors regarding the market. Therefore that this type of system approves the planning of the economy from the government without discussions.

Suppose the market for pizzas is unregulated. That is, pizza prices are free to adjust based on the forces of supply and demand.

If a shortage exists in the pizza market, then the current price must be.............than the equilibrium price. For the market to reach equilibrium, you would expect................

Answers

Answer:

Lower

Buyers would offer higher prices

Explanation:

When a shortage occurs when Demand exceeds supply. Excess demand occurs when price is below equilibrium price and as a result suppliers reduce quantity supplied.

As a result of the shortage, buyers would offer higher prices. As a result of the higher prices, the quantity supplied would increase and equilibrium would be restored.

I hope my answer helps you

Who is following the law when it comes to protecting investors’ funds?

Answers

Answer:

A mutual fund advisor who informs investors about risks is following the law when it comes to protecting investors’ funds

Explanation:

Answer:B (a mutual fund advisor who informs investors about risks)

Explanation:

A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $60; Second purchase $67; Third purchase $64. If the company sold two units for a total of $209 and used FIFO costing, the gross profit for the period would be

Answers

Answer:

$82

Explanation:

As company Uses FIFO system, it will sell first two products

The cost price =($60 + $67 = 127).

So Gross profit = Selling Price-Cost Price

Gross Profit = 209-127

= $82

The gross profit for the period is $82

Which best describes the role the applicants can fill in the company? Applicants 1 and 3 are best suited to work in network systems, while Applicant 2 could work in programming, information support, or interactive media. Applicants 2 and 3 are best suited to work in network systems, while Applicant 1 could work in programming, information support, or interactive media. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media. Applicant 3 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.

Answers

Incomplete question, however I made interferences from an employer perspective.

Answer:

Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.

Explanation:

From a performance point of view the programming, information support and interactive media roles of the company would be better handled by more than one individual since this roles involve more responsibilities that could not be handled by one individual.

The network systems role can better be managed by Applicant 1 only as it is a task that could be handled by a single employee.

Answer:

C. Applicant 1 is best suited to work in network systems, while Applicants 2 and 3 could work in programming, information support, or interactive media.

Explanation:

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