in discretionary fiscal policy (e.g., taxes) and automatic stabilizer ployment insurance benefits) can have significant unintended eff e following except * entive to spend. centive to save
Q: Which of the following statement is true? O a. Sunk cost is not relevant in capital…
A: Capital budgeting decisions are used to evaluate new projects, opportunities, and investments such…
Q: nked. The investment returns used are for illustrative The returns are likely to change during the…
A: An annuity that is payable at the start of each period is known as an annuity due.An standard…
Q: ncome statement helps to ascertain the ________________ of the concern. a. Cash flow b. Gross Profit…
A: Income statement shows the financial results such as gross profit/ loss and Net profit or loss. Any…
Q: Identify the incorrect statement in connection to working capital management: A.…
A: A business organization needs to manage its working capital for the smooth functioning of its…
Q: “Capital budgeting has the same focus as accrual accounting.” Do you agree? Explain.
A:
Q: Another implication of fiscal deficit is
A: Following is the answer to the question
Q: Depreciation is a non-cash charge, it doesn’t affect the results of cash budget analysis. True…
A: Depreciation is charged as reduction or decrease in value of fixed assets over the period of time.…
Q: How is the compressed adjusted present value (APV) model different from the Modigliani and Miller…
A: Here is the Answer:
Q: What is the main disadvantage of discountedpayback? Is the payback method of any realusefulness in…
A: The discounted payback method is a method of evaluating the payback period of the investment carried…
Q: Which of the following does not affect the measurement of the defined benefit obligation? A.…
A: A defined benefit plan is a type of retirement savings plan which provides pension to employees…
Q: Is capital budgeting decisions can be reversed
A: In capital budgeting we review different projects to determine their financial feasibility and…
Q: Which statement is true? * General borrowings may earn investment income deductible against general…
A: Business may borrow funds for the purpose of business. These borrowings can be general borrowings or…
Q: Explain why the Public-Choice view supports the deficit budget rule by using one of the voter’s…
A: The question is based on the concept of public opinion about the budget , which is based on the…
Q: With a decrease in time preference, the supply of loanable funds will increase. Select one: True…
A: Loanable funds includes all forms of credit, such as loans, bonds, or savings deposits. There is an…
Q: The static GAP focuses on monitoring net interest income in the long term. Select one: True…
A: The Static GAP focuses on monitoring net interest income in the short term but it can be calculated…
Q: In order to overcome the differences in the preferences of surplus units and deficit usnits, it may…
A: The large institution takes funds from the small investors and they prepare large amount of funds…
Q: each of the characteristics apply to large deductible plans. A. Degree of loss sensitivity B. Cash…
A: Large deductible plans : It is an employee compensation insurance plan. It is an insurance plan for…
Q: Which of the following should not be included as an application of the rate of return concept? rate…
A: As per the guidelines, only one question is allowed to be answered so, I am answering question no.…
Q: What is a federal budget deficit or surplus? How does this affectinterest rates?
A: The question is based on the concept of federal budget position and its impact on the prevailing…
Q: How will a decrease in time preferences affect the loanable funds market? A. There will be an…
A: Decrease in time preferences tells us that individuals in the economy are more patient and more…
Q: hat is the current market view on AUD/USD? (Will it appreciate and which depreciate? and why
A: The exchange rate depends on the interest rate in the market and inflation in the market and goes up…
Q: Which of the following decision measures should capital budgeting decision makers consider? Select…
A: Solution:- Capital budgeting means investment decision. It involves various methods and techniques…
Q: Each of the following are true of relevant information except O different alternatives can be…
A: Accounting is the process of recording, classifying, summarising and reporting accounting…
Q: Expansionary monetary policy is aimed at ________ the federal funds rate and ________ the aggregate…
A: The basic purpose of expansionary policy is to raise aggregate demand for meeting the shortfalls…
Q: In general, what is true of people's risk aversion for changes in income that are marginal (i.e.,…
A: Risk Aversion: It is the propensity of individuals to favor results with low vulnerability to those…
Q: Define and explain the agency problem in terms of differences in ability to diversify risk by…
A: Agency problem occurs when there is a conflict of interest when manager is in dilemma to serve the…
Q: Explain the differences between Restricted investment account (RIA) and Unrestricted investment…
A: Islamic accounting can be defined as the process of accounting based on Islamic law that is…
Q: Why are accruals called spontaneous sources of funds, what are their costs, and why don’tfirms use…
A: Spontaneous source of funds means source through which funds can be arises from daily business…
Q: Short term investment decisions are also called as Select one: O a. Liquidity decision b. Finance…
A: Investment decisions can be both short term and long term
Q: Are the use of non-GAAP financial measures ethical?
A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…
Q: Identify which one of the following is not the importance of capital market? a. Effective…
A: Capital markets are very important for countries to grow business and mobilize money.
Q: explain deficit finance
A: Financing refers to the process where funds are provided to various investors or an individual for…
Q: measures how large a spread between interest revenues and interest costs management has been able to…
A: Financial institution receive the interest on the loans and pay interest to depositors.
Q: advantages of negative interest rate policies?
A: There are pros and cons of negative interest rate policies. In fact, in my opinion negative interest…
Q: The following reason out the use of projected salaries as the base of computing the projected…
A: A projected benefit obligation is nothing but an actuarial measurement of present value of future…
Q: finance
A: Public Finance can be defined as managing the debt, revenue & other expenditure of the country…
Q: Which of the following statements is correct? The General Fund, Special Revenue, and Debt Service…
A: The accrual basis is a technique of accounting that records revenue as it is earned and expenses as…
Q: ___________ is the possible loss of revenue resulting mainly from a decline in the revenue base.…
A: There are various risks
Q: The funds requirement can be forecasted by theforecasted financial statement approach, but youcould…
A: Additional funds required (AFN) is that the quantity of cash a corporation should raise from…
Q: The following are discounting techniques in capital budgeting, except? discounted payback…
A: Solution:- Definition:- Capital budgeting is useful for making investment decisions in long term…
Q: BIP can be used in capital budgeting decisions to determine whether to invest a certain amount. O…
A: Capital Budgeting :- It is an process of deciding or choosing best amoung different alternatives…
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- Short run vs. Long Run a.Why on the long run, fiscal and monetary policies are not effective?Which explanation BEST describes John Maynard Keynes' "The Paradox of Thrift?" a. Individuals should reduce spending to cut debt. b. When an individual reduces her or his own spending, he or she reduces someone else's revenue. C. Individuals should borrow money during uncertain economic times. d. Individuals should only borrow money when times are good.What are two monetary policies that could be implemented by the central bank which would have the same impact as unemployment benefits? Which policy above including unemployment benefits would be most effective in boosting the economy due to a decrease in economic activity
- 3. Consider the monetary neutrality. Suppose that the central bank changed the money supply. According to economists’ assumption on monetary neutrality, could the change affect the employment in the short-run? How about in the long-run? Short-run: Long-run:Too much money in an economy with too little goods and services creates: a. None of the choices b. Disinflation O c. Inflation O d. DeflationWhy can an M&A fail? O a. Economies of scale O b. shortcomings of the due diligence process, problems not discovered O c. Higher debt taking capability O d. Tax allowances
- 1) Fiscal policy refers to a) making changes in private expenditures as a result of changes in government spending. b) making changes in the quantity of money to achieve particular economic goals. c) efforts to balance a government's budget. d) making changes to government budgets to achieve particular economic goals. 2) The economy suffers a positive supply shock. As a result, in the short run Real GDP will and the price level will a) fall; fall b) fall; rise c) fall; remain constant d) rise; fall 3) A change in Real GDP in the short run can be brought about by a change in a) labor productivity. b) wealth. c) All of the options available d) the exchange rate. 4) An expansionary fiscal policy will a) never result in a budget surplus. b) always result in a budget deficit. c) sometimes result in a budget deficit. d) always result in a budget surplus.Subsidy on inputs (A) increase inflation(B) decrease inflation(C) does not directly affect economic growth or cannot be determinedWhen the economy is weak, money is spent freely on needs and wants. True False
- Which one of the following is not the goals of Monetary policy? a. Low inflation O b. Low employment O c. Economic growth d. None e. Balance of Payment Clear my choiceFinance ethics is important because misconducts and their causes often leave economies with negative after effects. Discuss three (3) misconducts and their causes that justify the need for finance ethicsIs capital rationing always a bad thing? Explain