Question

In: Economics

Choose the correct answer. A.1. The paradox of sparing: A. occurs when the increase in savings...

Choose the correct answer.

A.1. The paradox of sparing:

A. occurs when the increase in savings leads to a reduction in total expenditure.

B. occurs when the increase in consumption leads to a reduction in total expenditure.

C. is a result of fiscal policy.

D. is a result of monetary policy.

A.2. The productive gap of the economy:

A. occurs when monetary policy is effective.

B. occurs when fiscal policy is effective.

C. is the deviation of real GDP from potential GDP.

D. is the deviation of nominal GDP from real GDP.

Answer True or False.

A.1 Average propensity for consumption indicates the change in consumption per unit of income change.

A.2 If in a period the demand is formed at unpredictably low levels, then this will lead to an unwanted accumulation of goods and, therefore, the investment made will be formed at lower than the desired levels.

Expert Solution

Choose the correct answer

Answer A1). occurs when the increase in savings leads to a reduction in total expenditure.

Paradox of sparing iss also called as pardox of thrift which occurs when at the time of recession people generally start to save more so as to spend in the future but this ultimately results in the overall scenario in the market and results in overall reduction in expenditure.

Answer A2). is the deviation of real GDP from potential GDP

Thi is economic analytical term which is basically used to denote the domastic or industrial production and the perceived/potential production. This is usually measured in terms of percentage of overall production capacity

True or False.

A1). False - Average propensity to consume implies that percentage of income which is spent insted of saving. While change in consumption per unit of income change.is marginal propensity to consume.

A2). True - If in some case the demand formed is lower than the expection. Thus the production in the economy will be in excess quantity and there will be extra supply in the econnomy. Therefore there will be less investment from the investors in the economy than desired level as there is no need to provide supply anymore due to lack of supply.

Rahul Sunny answered 2 years ago

True or false and explain 1. The paradox of thrift occurs when an increase in saving...

True or false and explain 1. The paradox of thrift occurs when an increase in saving leads to an increase in investment spending. 2. Suppose that the economy of Kennyland has an MPC of 0.8and an MPIM of 0.2. Currently, real GDP is $1800 and full-employment GDP is $2000. In this example, an increase in government spending of $40 will eliminate the GDP gap.

3) According to the paradox of thrift, an increase in planned savings _________ savings in equilibrium....

3) According to the paradox of thrift, an increase in planned savings _________ savings in equilibrium. A) increases B) decreases C) does not change D) cannot be determined

When ovulation occurs, what is released from the follicle? Choose all the correct options. a. Ovum...

When ovulation occurs, what is released from the follicle? Choose all the correct options. a. Ovum b. Cumulus oophorus c. Fluid from the antrum of the follicle d. Zona pellucida around the ovum

Choose the correct answer from the followings: a) In Wheatstone bridge, when it is balanced the...

Choose the correct answer from the followings: a) In Wheatstone bridge, when it is balanced the galvanometer reads 1. Inﬁnity 2. Zero 3. 5 mA 4. 10 mA b) In PMMC, dumping force helps ............. 1. To move the pointer to read our measurements correctly 2. To reset our readings back to zero 3. To stabilize the pointer during transition between readings 4. All the above c) A current transformers are used for: 1. For cost eﬀective measurement 2. For...

________ will ALL increase a company's capital dividend account. Choose the correct answer. A. Life insurance...

________ will ALL increase a company's capital dividend account. Choose the correct answer. A. Life insurance proceeds, net capital gains, and the additional refundable tax on investment income (ART) B. Stock dividends received from other corporations, non-taxable life insurance proceeds & non-taxable portion of capital gains C. Capital dividends received from other corporations, non-taxable life insurance proceeds & non-deductible portion of capital losses D. Capital dividends received from other corporations, non-taxable life insurance proceeds & non-taxable portion of capital gains

1) Economic growth occurs when there is an increase in the inflation rate. there is a...

1) Economic growth occurs when there is an increase in the inflation rate. there is a decrease in the unemployment rate. we discover a sleeping worker who is forced to go back to work. there is an increase in the amount of capital. 2) Saving is important for economic growth because it increases investment spending. because we increase our consumption immediately. because it reduces investment spending. because our standard of living will decrease. 3) The circular flow of income shows...

Choose the correct answer. 1. Which of the following is not a component of a Statement...

Choose the correct answer. 1. Which of the following is not a component of a Statement of Financial Position? Non-current assets Cash Cost of goods sold Retained earnings. 2. Under IFRS, how often should financial statements be prepared? At least annually No more than annually Monthly As often as the company requires. 3. Which sections of an annual report do IFRSs apply to? A- Management report B- Financial statements C- Auditors report D- Entire annual report 4. When a company...

Answer all the following questions: - I- Choose the best correct answer: 1- The ……………...

Answer all the following questions: - I- Choose the best correct answer: 1- The …………… defect is a ……………… defect which refers to the presence of a pair of vacant sites. A) Schottky, stoichiometric B) Schottky, non-stoichiometric C) Frenkel, non-stoichiometric D) Frenkel, stoichiometric 2- ……………….. is a powerful method for the determination of phase diagrams, especially in conjunction with other techniques, such as ……………………. for phase identification. A) in order; DTA/DSC, XRD B) in order; DTA/DSC, TGA C)...

Choose the correct answer. 1.Which of the following statements about the income statement is correct? The...

Choose the correct answer. 1.Which of the following statements about the income statement is correct? The income statement covers a specific point in time. The elements of the income statement include income from operations and distributions to owners. The income statement summarizes the results of a company's operations for a period. All of the above. 2. A company's balance sheet shows the value of assets, liabilities, and stockholders' equity: Over a period of time for any given period of time...

Select the MOST CORRECT answer. Countercurrent exchange... occurs in the gills of most fish when water...

Select the MOST CORRECT answer. Countercurrent exchange... occurs in the gills of most fish when water and blood flow in opposite directions allowing gas exchange. does not require energy for gas exchange, as oxygen and carbon dioxide move down their concentration gradient. is a process used in capillary beds of mammalian lungs. Both a) and b) are correct and c) is incorrect. a), b) and c) are all correct. Regarding human reproduction (select the MOST CORRECT statement): At the time...