g A contractionary fiscal policy is a policy that: reduces aggregate demand by decreasing government purchases. reduces aggregate demand by decreasing money supply. reduces aggregate demand by decreasing interest rates. reduces aggregate demand by decreasing taxes.

Answer:

reduces aggregate demand by decreasing government purchases.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

Generally, the national government of a country might use a contractionary policy to slow down the economy when inflation is high and gross domestic product (GDP) is growing too.

Hence, a contractionary fiscal policy is a policy that is typically used by the government to reduce aggregate demand by decreasing government purchases.

Aggregate demand (AD) can be defined as the total quantity of output (final goods and services) that is demanded by consumers at all possible price levels in an economy at a particular time.

An aggregate demand curve gives a negative relationship between the aggregate price level for goods or services and the quantity of aggregate output demanded in an economy at a specific period of time.

You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. A firm has $100 million in revenues. Does that mean it has generated a cash flow of $100 million?

You are buying your first car and need to borrow $16,000 over 5 years. If interest is 6%, what are your monthly payments

You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location (A) requires a $500,000 investment and is expected to yield annual net income of $80,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $44,000. Compute the return on investment for each Fast & Great Burgers alternative. Using return on investment as your only criterion, which location (A or B) should the company open? (The chain currently generates an 22% return on total assets.)

A lean work center is being operated with a lot size of 50 units. Assume the demand rate is 200 parts per hour. It takes three hours to circulate a container, that includes all set up, run, move, and idle time. What is the maximum inventory that will accumulate in the system

Banana Electric is a public company with the following details: Risk free rate 2.0% MRP 5.0% Observed Beta 1.0 Price per share $10.00 Shares outstanding 1,000.0 Debt (market value) 200.0 Cash 1,500.0 Cost of debt 2.0% Tax rate 0.0% Question: Calculate the weighted average cost of capital.

Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bearing account so that you can use it whenever you want (that is, hold it as money) or to use it to buy a U.S. Treasury bond.
The opportunity cost of holding the inheritance as money depends on the interest rate on the bond.
For each of the interest rates in the following table, compute the opportunity cost of holding the $10,000 as money.
Interest Rate on Government Bond (Percent) Opportunity Cost (Dollars per year)
8 _____ (10,000.00 / 800.00 / 0.08 / 8.00 / 125,000.00)
10 _____ (10,000.00 / 10.00 / 100,000.00 / 1,000.00 / 0.10)
What does the previous analysis suggest about for money?
a. The quantity of money demanded decreases as the interest rate rises.
b. The quantity of money demanded increases as the interest rate rises.
c. The supply of money is independent of interest rate.

The reason for failure of quality improvement efforts ismanagers continue to focus on short-term financial results.managers instinctively blame employees when there is a quality failure.managers interfere with teamwork.all of the above.

All of the following are characteristics of a perfectly competitive market except: Group of answer choices barriers to entry perfectly elastic demand a large number of sellers a homogeneous product

Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 39 years. The bonds have an annual coupon rate of 8.0% with semi-annual coupon payments. You would expect a quoted annual return of 9.0% if you purchased these bonds. What are the bonds worth to you

A liquidity trap is a situation in which: _________

a. using expansionary monetary policy is not effective because, the nominal interest rate is almost zero.
b. lenders are trapped by large loans with declining rates of return. using expansionary monetary policy is not effective, because the real interest rate is negative.
c. aggregate demand falls, because consumers do not have enough liquidity to consume.
d. using expansionary fiscal policy is not effective because, the budget is in a deficit.

What is a certificate of deposit (CD)?
A. A savings product with a guaranteed rate of interest and a maturity date.
B. Written document that proves ownership in a company or a small business.
C. A receipt for buying a mutual fund.
D. A bond with yearly dividends.

Wilson Co. produces tennis rackets. A customer has offered Wilson Co. $400 per unit for 200 units. To fill the order, Wilson would incur unit-level costs of $300 per unit and batch-level costs of $1,000. Wilson also incurred $10,000 of product-level costs to design the racket and $100,000 of facility-level costs. Calculate the amount of differential revenue.

Yappy Company is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $22,000 and $62,000, respectively. Yappy requires a 10% return on all new investments.

Present Value of an Annuity of 1
Period 8% 9% 10% 11% 12% 15%
8 5.747 5.535 5.335 5.146 4.968 4.487

Compute each of the following:
a. Cash payback period.
b. Net present value.
c. Profitability index.
d. Internal rate of return.
e. Annual rate of return.

You are offered the following investments: You can invest $500 today and receive $600 in 5 years. The investment is low risk. You can invest the $500 in a bank account paying 4%. What is the implied interest rate for the first choice, and which investment should you choose

1. An increase in the interest rate makes all households worse off.
a. True
b. False

2. If a household is neither borrowing nor lending, any change in the interest rate makes them better off.
a. True
b. False

3. The difference between the price of a nominal bond paying off $1 in nominal terms tomorrow and the price of a real bond paying off $1 in real terms tomorrow is the price level.
a. True
b. False

A buyer who accepts goods but notifies the seller the goods are non-conforming a. cannot recover any damages. b. can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages. c. cannot recover incidental damages. d. cannot recover consequential damages.

According to current GAAP, cash flow per share statisticsa.should be disclosed only if EPS information is disclosedb.should not be disclosedc.should not be disclosed if EPS information is disclosedd.should be disclosed in all situations

Bramble Company purchased a new van for floral deliveries on January 1, 2018. The van cost $66000 with an estimated life of 5 years and $13500 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance of the Accumulated Depreciation account at the end of 2019

A company purchased $3,300 worth of merchandise. Transportation costs were an additional $290. The company returned $230 worth of merchandise and then paid the invoice within the 3% cash discount period. The total cost of this merchandise is:

For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result of this price increase, the volume of all cereal sold by Big G changed by -2 percent, what can you infer about the own price elasticity of demand for Big G cereal

Julius builds dining chairs that he sells for $200 a chair. His fixed costs are $1,000 (for workshop equipment). Each chair costs him $50 in materials to produce plus an extra $25 for each previous chair made that day, which reflects Julius's increasing exhaustion. (Thus, the first chair cost $50, the second costs $75, the third cost $100, etc.) Assume time requirements in producing a chair are not a factor. How many chairs should Julius produce each day?

A general-purpose diagnostic technique that views organization behavior not as a static pattern but as a dynamic balance of forces working in opposite directions is the _____.

Lay Perfect Pillow Company sells specialty pillows and accessories to customers. Its fiscal year ends on December 31. The following transactions occurred in the current year:
Purchased $250,000 of new pillow inventory; paid $90,000 in cash and owed the rest on account.
Paid employees $180,300 in wages for work during the year; an additional $3,700 for the current year's wages will be paid in January of the next year.
Sold pillows to customers for $750,000; received $500,000 in cash and customers owed the rest on account. The cost of the pillow inventory to Lay Perfect Pillow was $485,000.
Paid $17,200 cash for utilities for the year.
Received $70,000 from customers as deposits on orders of new pillows to be sold to the customers in January of the next year.
Received a $19,130 utilities bill for December of the current year that will be paid in January of the next year.
Complete the following statements
Cash Basis Income Statement Accrual Basis Income Statement
Statement Statement
Revenues Revenues
Cash Sales Sales to Customers
Customer Deposits
Expenses Expenses
Inventory Purchase Cost of Sales
Wages Paid Wages expense
Utilities paid Utilities expense
Net Income Net Income

When 24,000 units are produced, variable costs are $12.00 per unit. Therefore, when 18,000 units are produced ________. Group of answer choices variable unit costs will increase to $16.00 per unit variable costs will remain at $12.00 per unit variable costs will total $288,000 variable unit costs will decrease to $9.00 per unit

In cost-volume-profit analysis, the unit contribution margin is: Group of answer choices Sales price per unit less unit total cost per unit. Sales price per unit less unit fixed cost per unit. Sales price per unit less total variable cost per unit. )Sales price per unit less cost of goods sold per unit. The same as the contribution margin ratio.

A bank currently has $100,000 in checkable deposits and $15,000 in actual reserves. If the reserve ratio is 20 percent, the bank has ________ in money-creating potential. If the reserve ratio is 14 percent, the bank has ________ in money-creating potential. multiple choice

1. Hayes Enterprises began 2003 with a retained earnings balance of $820,000. During 2003, the firm earned $470,000 after taxes. From this amount, preferred stockholders were paid $47,000 in dividends. At year-end 2003, the firm's retained earnings totaled $1,040,000. The firm had 120,000 shares of common stock outstanding during 2003.

a. Prepare a statement of retained earnings for the year ended December 31, 2003, for Hayes Enterprises. (Note: Be sure to calculate and include the amount of cash dividends paid in 2003.)

b. Calculate the firm's 2003 earnings per share (EPS).

c. How large a per-share cash dividend did the firm pay on common stock during 2003?

If a company reports profit margin of 32.3% and investment turnover of 1.30 for one of its investment centers, the return on investment must be:

Student tuition at Boehring University is ​$160 per semester credit hour. The state supplements school revenue by ​$80 per semester credit hour. Average class size for a typical 3​-credit course is 50 students. Labor costs are ​$4,500 per​ class, materials costs are ​$18 per student per​ class, and overhead costs are ​$28,000 per class. The multifactor productivity ratio currently is 1.08 and the labor productivity ratio is ​$160.71 per hour if the instructors work on an average of 14 hours per week for 16 weeks for each 3​-credit class of 50 students. Coach Bjourn Toulouse led the Big Red Herrings to several disappointing football seasons. Only better recruiting will return the Big Red Herrings to winning form. Because of the current state of the​ program, Boehring University fans are unlikely to support increases in the​ $192 season ticket price. Improved recruitment will increase overhead costs to ​$30,000 per class section from the current ​$28,000 per class section. The​ university's budget plan is to cover recruitment costs by increasing the average class size to 75 students. Labor costs will increase to ​$6,700 per 3​-credit course. Material costs will be about ​$25 per student for each 3​-credit course. Tuition will be ​$225 per semester​ credit, which is supplemented by state support of ​$80 per semester credit.

Required:
The multifactor productivity ratio with the​ university's plan to meet the expenses related to improving recruitment is what?

During the year ended December 31, year 8, Dalgiesh Co. had sales of $1,500, cost of goods sold of $800, and sales, general and administrative expenses of $200. In addition, Dalgiesh is involved in a restructuring process expected to last several years, and incurred restructuring costs in year 8 of $125. During the year the company also sold various investments for a net pre-tax gain of $125, and received $40 in dividends from investments. What amount of operating and nonoperating income will Dalgiesh present in its year 8 income statement