BUSINESS COLLEGE

Categorize the scenarios as either a discretionary act or the result of automatic stabilizers.a. Economic growth increases personal and corporate income, increasing tax payments.
b. A recession increases the number of recipients of unemployment benefits.
c. Legislators increase tbc generosity of unemployment benefits.
d. A law is enacted that increases government spending on health-care programs

1. Discretionary spending
2. Automatic stabilizers

Answers

Answer 1
Answer:

Answer:

a. automatic stabilizers.

b. automatic stabilizers.

Discretionary spending

Discretionary spending

Explanation:

Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments

In an expansion, progressive tax increases the tax paid and this reduces disposable income

In a contraction, tax paid is reduced and this increases disposable income

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

Discretionary fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes

Related Questions

Ian, a senior employee, has been assigned a task by his manager, Miranda. He has been asked to monitor the activities of some new employees in the team and report to her if he finds them engaged in activities that are not work related. Ian finds that the new employees were spending far too much time on social networking sites at work. However, instead of reporting this to Miranda straightaway, he advises the new employees to refrain from using those sites in the future. Moreover, he tells Miranda that the new employees were doing their work effectively. In this scenario, Ian has engaged in __________.
Centurion Alarms recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Centurion's balance sheet was: ​ Common stock (100,000 shares outstanding, $1 par value) $100,000 Additional paid-in capital 60,000 Retained earnings 90,000 Total common shareholders' equity $250,000 ​ Centurion's stock currently sells for $4 per share. After the stock dividend is paid, the amount in the Common stock account should be _______ and the amount in the Retained earnings account should be ______. $110,000; $50,000 $100,000; $90,000 $140,000; $50,000 $100,000; $50,000 $90,000; $110,000
Which relationship BEST illustrates a comparison of absolute advantage and comparative advantage? A) A country with an absolute advantage will always have a comparative advantage in producing products. B) A country with a comparative advantage can produce a greater output of a products than a country with an absolute advantage. C) A country with an absolute advantage can produce a product at a lower opportunity cost than a country with a comparative advantage in producing all products. D) A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.
An inferior good is Multiple Choice A. one whose demand curve will shift rightward as incomes rise. B. not accurately defined by any of these statements. C. one that has not been approved by the Federal Food and Drug Administration. D. one whose price and quantity demanded vary directly.
A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Now refer to the Income Statement in Chester's Annual Report. The direct labor costs for Chester were $32,680. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the productivity index for Chester that led to such savings?

In the context of web marketing the _____ is computed by dividing the number of clicks on an ad

Answers

The answer would be “click through rate.”

Part Three: Neighboring WSU dropped their tuition and fees by 14 percent and TTA saw enrollment fall from 8,400 to 7,400. What is the cross elasticity between the two schools.?

Answers

Answer:

0.85

Explanation:

Given that

Dropped percentage of tuition and fees = 14%

Enrollment fall from 8,400 to 7,400

So, the cross elasticity between the two schools is

= Percentage change in quantity demanded of one good ÷ Percentage change in price of another good

where,

Percentage change in quantity demanded of one good equals to

= ($7,400 - $8,400) ÷ ($8,400)

= -11.9%

And, the percentage change in price of another good is -14%

So, the cross elasticity is

= -11.9% ÷ -14%

= 0.85

Suppose a group of investors pooled $750,000 and founded Best National Bank in Rochester, NY. Best National Bank used $$75,000 of this to purchase shares in the New York Federal Reserve Bank. With the remaining $675,000, the bank manager purchased a building, furniture, and equipment for the bank.

Answers

Answer:

I have no idea to wat the answer is

Biochemical Corp. requires $720,000 in financing over the next three years. The firm can borrow the funds for three years at 10.20 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 8.50 percent interest in the first year, 12.90 percent interest in the second year, and 9.75 percent interest in the third year. Assume interest is paid in full at the end of each year.Required:
a. Determine the total interest cost under each plan.
b. Which plan is less costly?

i. Short-tem variable-rate plan
ii. Long-term fixed-rate plarn

Answers

Answer:

Long-term fixed-rate plan-$220,320.00  

Short-term variable-rate plan-$224,280.00  

The long-term fixed-rate plan is less costly as it has a lower interest expense

Explanation:

Total interest under the first plan=principal amount*interest rate*3 years

principal amount is $720,000

interest rate is 10.20%

total interest expense=$720,000*10.20%*3=$220,320.00  

Interest expense under second plan=($720,000*8.50%)+($720,000*12.90%)+($720,000*9.75%)=$224,280.00  

If the depreciable investment is $1,000,000 and the MACRS 5-Year class schedule is: Year-1: 20%; Year-2: 32%; Year-3: 19.2%; Year-4: 11.5%; Year-5: 11.5% and Year-6: 5.8% Calculate the depreciation tax shield for Year-2 using a tax rate of 30%:

Answers

Answer: C.$96,000

Explanation:

The Depreciation Tax Shield refers to how much in taxes are being saved by the company for depreciating an asset because Depreciation is tax deductible.

Depreciation Tax Shield = Tax Rate * Depreciation Amount for year

= 30% * ( 1,000,000 * 32%)

= 30% * 320,000

= $96,000

By claiming a Depreciation of $320,000 in Year 2, the depreciable asset saved the company $96,000 in taxes.

Maize Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,400 units at $30 each. Maize will incur additional costs of $3 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity.

Answers

Answer:

$37,800.00

Explanation:

Maize Company cost structure is such that $20 out of the $35 is a variable cost and the balance of $15 is a fixed cost.

So the fixed cost will always be incurred whether or the special order is accepted.

So he relevant cost of accept the special order from the foreign wholesaler

is the relevant variable cost which is the variable cost of production and the additional print logo cost

Also remember that whether or not the order is accepted the fixed cost will still be incurred and besides Maize still has excess capacity

A relevant variable cost is the future cash cost that would be incurred as a result of producing and selling a unit of the product.

Relevant cost =  $20 + $3

                   = $23

The increase in net income = (selling price - relevant cost)× unit sold

=( $30 - $23 ) × 5,400

$37,800.00

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