"Preannounced, stable policies to achieve a low and constant money supply growth and a balanced federal budget are therefore the best way to lower the inflation rate." This statement best illustrates the: a. Keynesian theory. b. incomes policy. c. supply-side theory. d. rational expectations theory.

Answers

Answer 1
Answer:

Answer:

D) rational expectations theory.

Explanation:

The rational expectations economic theory states that the expectations of the population about how the economy is working, will actually influence the economy in a way that these expectations tend to become a reality.

For example, if people expect that the economy is going to fall into a recession they will try to save money and spend less. Because the population starts to save money and spend less the economy will slip into a recession.

The same applies the other way around, if the population is happy and confident about how the economy is doing, they will increase their spending and keep the economy growing.

We have to remember that almost 70% of the economy is private consumption and any small change in private consumption can lift or sink an economy.


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Recently, the price of gasoline dropped to just under $3.50/gallon. Economic analysts currently are focusing on questions concerning the likely impacts of this price decrease on the demand for gasoline. The branch of economics that deals with these questions is called: (a) normative economics (b) positive economics (c) microeconomics (d) macroeconomics

Having a savings account can contribute to a person s overall financial well-being. Which one of the following is NOT a benefit of maintaining a savings account?a. A savings account provides security in tough financial times
b. With a savings account, you can invest when the opportunity presents itself
c. Having a savings account gives individuals the ability to borrow money from members in the community
d. A savings account allows an individual to fulfill life long dreams

Answers

c. Having a savings account gives individuals the ability to borrow money from members in the community.

What are the benefits of a savings account?

Maintaining a savings account offers numerous benefits, but one advantage it does not provide is the ability to borrow money from members in the community.

Savings accounts are designed for individuals to deposit and save their money, not to facilitate borrowing from others. Instead, this type of borrowing is typically facilitated through lending institutions like banks, credit unions, or peer-to-peer lending platforms.

Option C is correct

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Letter C. Keyword borrowing

Changes in the value of a firm's stocks and bonds offer important information for a firm's managers. If the price is increasing investors are _______ and are providing information that indicates the firm's managers might want to _________ the business. a) more optimistic, expand b) more optimistic, contract c) more pessimistic, contract d) more pessimistic, expand

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Answer: Option A

Explanation: In simple words, firms stock refers to the securities that a company has issued for gaining funds for operations. Prices of such securities are highly fluctuating and changes as per the prospects and existing economical conditions.

A rise in prices of the stock indicates that the returns for the stock will be going to increase in future and thus can happen only if the investors are expecting high profits in coming period.

An expansion of business opens new opportunities for the firm in market and increasing their profits proportionately leading to increase in stock prices.

Hence the correct option is A .

Ryan started a tutoring website. After a few months, a publishing company filed a lawsuit against his company for copyright infringement. Ryan had to shut down his business and lost all his personal assets in the process. What type of business is this?

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Answer:

The correct answer is: Sole Proprietorship.

Explanation:

A Sole Proprietorship is the type of business where there is a single owner who is the same individual in charge of the operations and is fully liable for debt and responsibilities derived from the business transactions. Sole proprietorships are not considered entities in the U.S. and because they have few regulations to cover they are easy to form and dismantle.

Market economies operate on the principle of supply and demand.

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I think that the stament given above is true, as this principle lets business survive or fail without much interaction from the government.

Which of the following fiscal policies would mostly likely reduce unemployment?Increasing funding for local grants

Lowering reserve requirements

Raising taxes on small business

Selling more government securities

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Answer: lowering reserve requirements

By lowering reserve ratio, commercial banks hold less cash, which means that they have more money available to make loans to businesses and consumers. Incresaing loans drives to more production and consumption, which leads to economic growth and employment increase.  

A developer buys the last five vacant lots in a subdivision and constructs a large, expensive home on each lot. The homes sell for what are record-setting high prices for the area. The owners of the older, lesser-valued houses in the neighborhood may find that the values of their homes are affected by what principle

Answers

Answer:

Progression

Explanation:

Progression in real estate occurs when the property in a given area improves in value as a result of more expensive property bring built in the area.

This is one major way real estate appreciates in value. Some property owners wait for others to develop the area and naturally their own property appreciates in value.

In this scenario the developer buys the last five vacant lots in a subdivision and constructs a large, expensive home on each lot. The homes sell for what are record-setting high prices for the area.