Explain some of the steps that a government would wish to adopt in an inflationary environment....

Explain some of the steps that a government would wish to adopt in an inflationary environment. Illustrate how these steps would affect the aggregate expenditure model and the AggD and AggS model.

Expert Solution

Rahul Sunny answered 1 year ago

1. Suppose the government cuts transfer payments in an economy with an inflationary gap. How would...

1. Suppose the government cuts transfer payments in an economy with an inflationary gap. How would this policy affect bond prices, interest rates, investment, the exchange rate, net exports, real GDP, and the price level? Show your results graphically.

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Please explain why some companies in the capital market tend to adopt a high dividend policy,...

Please explain why some companies in the capital market tend to adopt a high dividend policy, while others prefer a low dividend policy based on dividend policy theories. And indicate elements companies should consider when determining dividend policy.

Tom, Duck and Harry run a successful partnership conducting a retail business. They wish to adopt...

Tom, Duck and Harry run a successful partnership conducting a retail business. They wish to adopt a new business structure which offers them limited liability, the ability to manage the business and they also wish to keep their business affairs private. Explain what type of business structure should Tom, Duck and Harry adopt and the formalities that will be required.

In an inflationary environment, cash flows in future years will have less purchasing power than those...

In an inflationary environment, cash flows in future years will have less purchasing power than those in earlier years. Thus, a multiple-year cash-flow forecast is not a consistent measure of a property’s performance. How might this difficulty be addressed? Operating expenses cannot be estimated based on experience and are totally unrelated to revenue projections. Do you agree? Discuss. Give some examples where relative transfer costs have been altered enough to shift the competitive positions of properties in the area.

Long-answer: Please explain why some companies in the capital market tend to adopt a high dividend...

Long-answer: Please explain why some companies in the capital market tend to adopt a high dividend policy, while others prefer a low dividend policy based on dividend policy theories. And indicate elements companies should consider when determining dividend policy

Once you are in the Linux environment, perform the following steps: Set an environment variable for...

Once you are in the Linux environment, perform the following steps: Set an environment variable for USER that holds the value of your name. For this submission, you will write a BASH shell program that meets the following requirements: Clear the screen. Display to the user what the program will do and that the program is starting. Display to the user the string “Hello“ and the value of the USER environment variable. Output a blank line. Display to the user...

Assuming an inflationary environment where costs are always increasing, which cost flow assumption gives you the...

Assuming an inflationary environment where costs are always increasing, which cost flow assumption gives you the highest Net Income? (answer choices) A. FIFO B. Weighted Average C. Specific Identification D. LIFO

A certain market is in equilibrium with unemployment. The government decided to adopt a policy which...

A certain market is in equilibrium with unemployment. The government decided to adopt a policy which encourages imports. As a result: a. The interest rate declined, private consumption declined, and the change in investment cannot be determined. b. The interest rate declined, private consumption and investments declined. c. The interest rate rose, private consumption rose, and the change in investment cannot be determined. d. The change in the interest rate cannot be determined. e. All of the other answers are...

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