A marginal change is one that a. is not important for public policy. D Declaration of a cash dividend by the board of directors. 7) Which of the following does not shift the production possibilities frontier? It covered Brazil, China, Germany, Italy, the Republic of Korea, Russian Federation, South . 1. If the Federal Reserve causes a significant decrease in the quantity of money that is circulating in the economy, then which of the following will take place? Which of the following transactions would result in an increase in the current ratio? Twitter is a microblogging and social networking service owned by American company Twitter, Inc., on which users post and interact with messages known as "tweets". We use data from the IRS, partners, and the charities themselves to power our unbiased ratings so that you can give with confidence. Add your answer and earn points. 1) An increase in current assets increases working capital. The Sitemap must: Begin with an opening < urlset > tag and end with a closing </urlset> tag. a. global warming will stimulate crop growth. Price is greater than marginal cost. answered expert verified Which of the following changes to Earth's atmosphere would increase the greenhouse effect Select all that apply. Answer: The cut in current T will cause disposable income to rise and current C to rise. The aggregate demand curve is downward sloping because as the price level increases the. What strategies might you use to ensure you get the most services at low fees? This will depress both current C and I and, again, IS shifts to the left. This causes current C to increase and the IS curve to shift right. Suppose the Fed increases the money supply in the current period with no other policy change implemented or anticipated. The multiplier is now smaller because changes in current Y do not have as large an effect on current C. So, the mpc is smaller, the multiplier smaller, and the IS curve steeper. Price is equal to marginal revenue. When this occurs, the discounted present value of future profits is higher causing I to increase. c. Firms make positive economic profits. 82. Physical Capital and the Firm's Investment Decision, What Happens When Things Change? I. an increase in the expected future interest rate and an increase in expected future output. A smartphone is a portable computer device that combines mobile telephone and computing functions into one unit. With increase in temperature, volume will increase & then molarity will decrease. An increase in which of the following would cause the aggregate demand curve to shift to the left? The reduction in the future expected rate will also cause an increase in the present value of future profits. The IS curve shifts to the left where there is. Suppose there is an increase in expected future output. Adaptive expectations assumed that individuals formed expectations by looking at past changes in a variable. If a company borrows $50,000 and agrees to repay the loan in 90 days, the company's working capital is unchanged. Also assume that the unemployment rate has greater than the natural rate of unemployment for a number of years. Aggregate demand will decrease because the demand for United States exports decreases. A $100 decrease in the cash outflow each year for three years. We have recently announced exciting next steps for the programme following the increase announced at Budget and Spending Review last year. Correct answer. Explain how the credibility of the central bank might influence the effectiveness of this monetary policy action and announcement of a future monetary policy action. This will cause which of the following to occur? c. Increasing current amplitude will increase the number of nerve fibers stimulated Which of the following changes to an electrical stimulation current will most effectively increase the number of APs generated? Include online banks. For each of the following events, explain the short-run and long-run effects on output and the price level, assuming policymakers take no action. A $100 increase in disposal value at the end of four years. If the effects of the higher future interest rates dominate the other effects, current demand could fall causing current Y to fall. Which of the following statements best describes the impact of a decrease in Japanese income on aggregate demand in the United States? a reduction in expected future real interest rates. When firms decrease their investment spending, which of the following will take place? That $160,000 is then used by your local . a. Consumption will change as a result of this lower expected future interest rate because of its effects on which of the following? does not influence incentives. A weighted Code-to-Test (CODTEF) attribute table correlates code changes to tests. A permanent increase in the money supply, with no other policy change implemented or anticipated, will most likely cause. This will cause an increase in investment and another rightward shift in the IS curve. Increasing the rise time b. Answer: A reduction in Ye will cause human wealth to be higher. 1 point May increase or decrease the interest rate depending on the exchange rate Increase the interest rate No change in the interest rate Decrease the interest rate Lower bond prices Previous c. higher levels of carbon dioxide in the atmosphere will have no effect. A) the IS curve to shift left in the current period. c. A technological improvement raises productivity. Explain what effect a reduction in future expected output will have on the IS curve and LM curve in the current period. The price level II. Increased evaporation will result in more frequent and intense storms, but will also contribute to drying over some land areas. a) Photo-current increases with intensity of light b) Photo-current is proportional to the applied voltage c) Current in photocell increases with increasing frequency d) Stopping potential increases with increase of incident light Correct answer is option 'A'. The present value of a bond 's payments. d. The company's stock price hits a new low. A 1.5 kg ball is dropped so that is is traveling at a velocity of -27 m/s when it hits the ground. The Sitemap protocol format consists of XML tags. (check all that apply) 1 / 1 point Decrease in the interest rate Present value is inversely related to the interest rate (r) and the number of periods (n), so a decrease in the interest rate and the number of periods would increase the PV. The lower future Y will do the same. A. This will have no effect on the LM curve. d. A recession overseas causes foreigners to buy fewer U.S. goods. Answer: In the current period, the LM curve will shift up causing r to rise and Y to fall. Answer: If individuals do not believe the Fed, we will observe the downward shift in the LM curve causing current rates to fall and current output to rise (with no shift in the IS curve). Why can market failures be caused by externalities? (a) What are the two ways that households and firms interact in the factor market? Providing excellent care to your patients is demanding enough without having to deal with all of the administrative and logistical tasks that come with running your . Explain the three channels economists have identified through which quantitative or credit easing may affect the economy. Which of the following will cause aggregate private spending to increase? A. Given this information, individuals will expect. Option - Decrease in Tax Expenses is the correct Option: Explaination: Sustainable Growth Rate = Return on Equity (ROE) * Retention Rate, therefore , Increase in Dividend payout is not true as more the dividend payount, less will . A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the . The higher future rates will decrease current C and current I. There are several factors that determine the size of the slope of the IS curve: the multiplier and the interest rate sensitivity of investment. The higher future Y will do the same. at is the change in momentum of the ball? The federal government increases spending on national defense. Increasing resistance B. Decreasing power C. Increasing voltage D. Increasing volume Thankssss Advertisement AJaY47 is waiting for your help. an ambiguous effect on the position of the IS curve in the current period. This will increase both current C and I and, again, IS shifts to the right. A reduction in which of the following variables will cause an increase in the amount of money individuals wish to hold in the current period? This will cause which of the following to occur? "Over the past 20 years, people have consistently under-predicted the inflation rate". Use the IS-LM model to illustrate graphically and explain the effects of this policy on current output and the current interest rate. If the load is added in. For Black Friday deals, you'll find 20% off all products and additional discounts using the coupon code BFCM2022. The greenhouse effect is essential to life on Earth, but human-made emissions in the atmosphere are trapping and slowing heat loss to space. According to the aggregate demand curve, when the aggregate price level _____, the quantity of ______. As I increases, the IS curve shifts right. 3) An increase in current liabilities decreases working capital. Cyber Monday comes right after Black Friday, and Smoke Cartel is offering 20% off the whole site with the coupon code BFCM2022. Answer: The increase in current T will cause disposable income to fall and current C to fall. Suppose there is a simultaneous reduction in expected future output and reduction in the future expected interest rate. [8]. When answering this question, assume individuals consider only the medium-run effects of changes in future variables when forming expectations of future output and future interest rates Suppose policy makers announce a reduction in future government spending. In what direction? Current = (voltage) divided by (resistance) . Use the IS-LM model to illustrate graphically and explain the effects of this policy on current output and the current interest rate. b. even the moderate projections on global warming will cause devastation. This procedure is known as: If you lose your income and as a result you buy more of a product, what is that type of product called? Suppose there is an increase in the expected future interest rate. b. Look up the current sales and use tax rate by address. Any long-lasting tool that people use to produce goods and services is called a. a product b. machinery c. capital d. equipment e. labor assistance, Physical Capital and the Firm's Investment Decision 2. An increase in Ye will also cause firms to increase their expectations of future expected profits. The formula for the current through the circuit is . If the ball rebounds upward with the same speed, wh If the percentage increase in the quantity supplied equals the percentage increase in the price, the supply: most governments would more likely place a tax on an elastic item. I hope you can see from this fraction that DE creasing the voltage or IN creasing the resistance will both decrease the current. A. The LM curve will not be affected. Suppose fiscal policy makers pass a budget that cuts taxes in the current period and are expected to cut taxes in the future. Located in the Amador Valley, it is a suburb in the East Bay region of the San Francisco Bay Area. For the Black Friday and Cyber Monday winddown sale, expect 15% off sitewide with the code LASTCHANCE. So, A is a function of current income, future expected income, current taxes, future expected taxes, current interest rates, and future expected interest rates. All data values in a Sitemap must be entity-escaped. Suppose the central bank implements a monetary expansion in the current period and is expected to continue this monetary expansion in the future. Answer: Current output could fall. Answer: A reduction in the future expected interest rate will cause an increase in the present value of future disposable income and, therefore, human wealth. Kim deposits $200 in currency in a checking account at a bank. comes to a complete stop in a distan . This will cause which of the following to occur? B . The higher future Y will do the same. If government taxes increase, how will aggregate demand and unemployment change? We get it. For many years the price in the industry has changed infrequently , and all the firms in the industry charge the same price. (c) How might the introduction of government into the circular flow model affect your business? Apr 19, 2013 #4 DarioC 255 19 Five key greenhouse gases are CO 2, nitrous oxide, methane, chlorofluorocarbons, and . As future T is raised, future Y will fall. Suppose the government removes a tax on buyers of a good and levies a tax of the same size on sellers of the good. The file itself must be UTF-8 encoded. Answer: In short, yes. 4) An increase in current liabilities increases working capital Home Bachelor of Business Administration (BBA) Advanced Financial Management 2 Various forms of life exist, such as plants, animals, fungi, protists, archaea, and bacteria. B. The LM curve will not be affected. Make a list of ways to "shop around" for the best bank for your needs. Individuals will reduce their current consumption and the IS curve will shift left. Users interact with Twitter through browser or mobile frontend software, or programmatically via its APIs. Answer: 1) When arbitrage fails, credit easing can work. The accounting equation is a way of understanding the balance between assets, liabilities and equity. This will have no effect on the LM curve. Answer: An increase in the future expected interest rate will cause a reduction in the present value of future disposable income and, therefore, human wealth. Explain what effect a reduction in the future expected interest rate will have on the IS curve and LM curve in the current period. Data Last Updated: 4/1 . When this occurs, the discounted present value of future profits is lower causing I to decrease. Explain why the new IS curve that takes into account expectations is likely steeper than the original IS curve that ignored expectations. 9) For this question, assume that the expected rate of inflation is a function of past year's inflation. Which of the following will shift the aggregate demand curve to the right? Explain what effect an increase in the future expected interest rate will have on the IS curve and LM curve in the current period. You cannot access byjus.com. These include detailed underlying measures that rely on double-entry accounting.By design, such accounting makes the totals on both sides of an account equal even though they each measure different characteristics, for . The expectation that this will continue will cause individuals to expect lower future rates and higher future output. answered 8 POINTS EASY MULTIPLE CHOICE, BRAINLIST FOR CORRECT ANSWER: Which of the following changes will increase current? The COVID-19 pandemic has forever changed online shopping behaviours, according to a survey of about 3,700 consumers in nine emerging and developed economies. The increase in future rates, however, will cause current demand to fall and shift the current IS curve to the left. ANSWER: ACD As indicated by the equation in the introduction to this part, the current flowing through an inductor is related to the amount of electrical potential energy stored in the inductor. The lower future rates will increase current C and current I. Suppose individuals expect future interest rates to decrease. Suppose there is a simultaneous reduction in the expected future interest rate and increase in future expected output. In other words, for every $1 in debt, your company has $1.25 in corresponding assets. The increase in future interest rates will have the opposite effect on C and I causing the IS curve to shift left. If no other expenses are incurred, working capital will increase by $20,000. The principal reason why the chain index for GDP and the CPI both overstate actual changes in prices is that: A production possibilities frontier will shift outward when. | The Investment Curve, Predicting Stock Prices: Fundamental Analysis, The Economist's View: Efficient Markets Theory, B PTS: 1 DIF: 3 LOC: Using economic models, E PTS: 1 DIF: 2 LOC: Markets for financial assets, A PTS: 1 DIF: 2 LOC: Markets for financial assets, C PTS: 1 DIF: 2 LOC: Markets for financial assets, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams. The cost of all inputs II only When consumers become more optimistic about the economy, which of the following will take place in the short run? AD curve will not shift; movement will be up the AD curve. Compare the following three ways to model expectations: animal spirits, adaptive expectations, and rational expectations. an unknown effect on the current interest rate. The aggregate demand curve would shift to the left for all the following reasons except: If the stock of physical capital is high, the aggregate demand curve will: The U.S. dollar has become stronger relative to the Euro. d. Firms produce at the minimum of average total cost. The survey, entitled "COVID-19 and E-commerce", examined how the pandemic has changed the way consumers use e-commerce and digital solutions. AACSB: Reflective Thinking Skills Blooms: Understanding Difficulty: 2 Medium . For a list of your current and historical rates, go to the California City & County Sales & Use Tax Rates webpage. increasing the concentration of CO2 increasing the number of N, molecules decreasing the concentration of CH4 decreasing the amount of water vapor 2 See answers Advertisement adeoladokun31 A) an increase in importsB) an increase in the amount of money the U.S. sends in foreign aid to other countries C) an increase in exports D) an increase in the amount of income U.S. companies pay out to foreigners who own investments in the United States.Answer: C A ) an increase in imports The This paper describe the "change-driven" method, associated tools and experiences for automated, intelligent software build verification. Get Started. The additional revenue a firm obtains from employing one more unit of capital is called the a. marginal revenue product of capital b. If aggregate demand increases (AD curve shifts to the right), then the price level, output, and the unemployment rate are most likely to change in which of the following ways? Suppose there is a reduction in the expected future interest rate. c. makes an outcome inefficient. a. A change in which of the following will cause the aggregate demand curve to shift? Suppose individuals expect future taxes to decrease. Which of the following would be a violation of the rational expectations assumption? the IS curve to shift right in the current period. Suppose individuals expect future government spending to decrease. In the U.S., this will cause, the aggregate demand curve shifts to the left, Alexander Holmes, Barbara Illowsky, Susan Dean, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams. All other factors have the opposite effect. We are not permitting internet traffic to Byjus website from countries within European Union at this time. Use the IS-LM model to illustrate graphically and explain the effects of this policy on current output and the current interest rate. The increase in future expected taxes will, all else fixed, decrease human wealth and current consumption. An increase in government spending on education B. Use the IS-LM model to illustrate graphically and explain the effects of this policy on current output and the current interest rate. Increasing the ramp-up time c. Decreasing the ramp-up time d. Increasing the frequencY d. Answer: Animal spirits assumed that expectations were simply random. Expert Answer. Government spending III. Solution: Answer 11. AJaY47 is waiting for your help. When plant is acquired on account the fixed asset would increase and there would be increase in the creditors amount, hence the current ratio would decrease. 2) Quantitative easing may affect expectations of future nominal interest rates. A decrease in which of the following will increase aggregate demand? What is true of a monopolistically competitive market in long-run equilibrium? The increase in the future expected rate will also cause a reduction in the present value of future profits. 3) Quantitative easing may affect expectations of inflation. Capital Budgeting Which of the following changes would result in the highest present value? 3.0 (2 reviews) Changes in future expected interest rates can affect current consumption. A $100 decrease in taxes each year for four years. In theory, the effects on current output are ambiguous. 39. All other factors have the opposite effect. What are some disadvantages of centrally planned economies? Suppose there is a fiscal expansion in the current period. C. Firms in the industry build into their products unnecessary features that make it hard for consumers to switch from one company's products to another 's. This will cause which of the following to occur? This will cause a reduction in investment and another leftward shift in the IS curve. A. You have control over both of these: The voltage depends on how many batteries or the size of the power supply you use. a. The aggregate demand curve shows the relationship between the aggregate price level and: the aggregate quantity of output demanded by households, businesses, the government, and the rest of the world. 8 POINTS EASY MULTIPLE CHOICE, BRAINLIST FOR CORRECT ANSWER: Which of the following changes will increase current? If these effects dominate (or if the Fed is expected to contract in the future), Y could fall in the current period. way? Answer: In the current period, the LM curve will shift down causing r to fall and Y to rise. No tracking or performance measurement cookies were served with this page. Given this information, individuals will expect. Force is rate of change of energy with separation so for an identical situation doubling the magnetic field strength gives four times the energy, giving four times the force. Changes in price coincide with changes in the catalog. Suppose individuals expect future interest rates to decrease. 2) An increase in current assets decreases working capital. This will cause which of the following to occur? business accounting q&a library bubbles corporation's account balances during the year showed the following changes: increase (decrease) current assets 278,000 non-current assets (97,000) current liabilities 54,000 non-current liabilities (20,000) ordinary shares 60,000 additional paid-in capital 12,000 revaluation surplus 50,000 treasury shares An increase in Ye will cause human wealth to be higher. So, we will also see a rightward shift in the current IS curve. As future T is cut, future Y will rise. Suppose the central bank reduces the money supply. Given this information, in which of the following cases will output in the current period be more likely to increase? Refresh the page or contact the site owner to request access. National accounts or national account systems (NAS) are the implementation of complete and consistent accounting techniques for measuring the economic activity of a nation. Can you explain this answer? b. e. An increase in costs incurred when filing for bankruptcy. The Causes of Climate Change. This reduction in expected future taxes will cause which of the following to occur in the current period? 27. b. This will also cause the IS curve to shift right. If there is a significant increase in government spending, which of the following will take place? We have an opportunity to scale our support to the sector over the next 3 years and are growing the product community within the team with the addition of two new Product Manager roles. If the price level increases, which of the following would take place? Answer: E E ) increases in the inflation rate . This fiscal expansion will tend to cause a smaller increase in current output when. Aggregate demand may be measured by adding, consumption, investment, government spending, and net exports. Increase spending by businesses on computers. As I decreases, the IS curve shifts left. c. higher levels of carbon dioxide in the atmosphere will have no effect. They are distinguished from feature phones by their stronger hardware capabilities and extensive mobile operating systems, which facilitate wider software, internet (including web browsing over mobile broadband), and multimedia functionality (including music, video, cameras, and . Ohm's Law says Voltage = Current x Resistance With constant voltage, an increase in resistance decreases the current. This will tend to increase the current r and current Y as well. a reduction in the expected future interest rate and no change in expected future output, Assume individuals consider only the long run effects of changes in future macro variables when forming expectations of future output and future interest rates. Which of the following statements is correct? When the current flowing through a wire reverses direction, the magnetic field around the wire Does not change Increases Disappears Reverses direction The bulk magnetic properties of matter derive primarily from Protons Neutrons Electrons Whole nuclei If the current in a wire doubles, the induced magnetic field Doubles Quadruples Remains the same The expectation that this will continue will cause individuals to expect lower future rates and higher future output. This will also cause the IS curve to shift left. In theory, the effects on current output are ambiguous. Individuals will increase their current consumption and the IS curve will shift right. You can use Charity Navigator to find and support thousands of charities that align with your passions and values. Changes in future expected interest rates can affect current consumption. The population was 79,871 at the 2020 census. Rational expectations assumed that individuals form expectations by using all currently available information and an understanding of the model and policy. Suppose fiscal policy makers pass a budget that increases taxes in the current period and are expected to raise taxes in the future. When consumers become more optimistic about the economy, which of the following will take place in the short run? In the original IS-LM model, changes in Y and the interest rate were implicitly assumed permanent. . Individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates. Which of the following will not cause aggregate private spending to decrease? a reduction in the expected future interest rate and an increase in expected future output. If your company has $10 million in assets and $8 million in debts, its current ratio is 10/8 or 1.25. But when we increase the temperature for a gaseous solute then its molecules will gain more kinetic energy due to which they collide more rapidly. An increase in the corporate tax rate. List the approaches to resolving a deadlock between a union and a company's management. This will tend to increase the current r and current Y as well. Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Identify the following resources. Double the magnetic field strength give four times the magnetic field energy. What is the velocity of a 1.2 kg ball rolling with a momentum of 15.6 kg m/s? This document describes the XML schema for the Sitemap protocol. an increase in the current interest rate causes an increase in expected future interest rates. D. Firms meet yearly to discuss their annual sales forecasts. This will cause the IS curve to shift right. Given the money demand curve, an increase in money supply will cause which of the following changes? An exceptional patient experience from onboarding to ongoing care increases patient satisfaction and retention. Solution The correct option is B This will cause which of the following to occur? The drop in future interest rates will have the opposite effect on C and I causing the IS curve to shift right. The reason is that the current asset Cash increased by $50,000 and the current liability Loans Payable increased by $50,000.
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