subject
Business, 21.04.2020 22:43 luella614ox1zum

In his book The Optimum Quantity of Money, Milton Friedman talks about a helicopter dropping $2,000 over a community. The cash dropped by the helicopter gives the people in this community more money to spend. A tax cut also has the same effect: it increases disposable income. Suppose tax cuts, analogous to the helicopter drop, were proposed as a method to shift the labor demand curve to the right following a recession. How effective do you think this policy would be? A. Somewhat effective, but only to the extent that most of the tax cut is concurrently spent on domestic output, that multiplier effects occur, and crowding out is small. B. Very effective, since tax cuts are concentrated among wealthy individuals who usually spend all or most of the extra income. C. Not effective, since the majority of the tax cut is saved and any portion spent leads to complete crowding out. D. Not effective, since the tax cuts go to consumers rather than to the employers (demanders) of labor.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 05:30
U.s. internet advertising revenue grew at the rate of r(t) = 0.82t + 1.14 (0 ≀ t ≀ 4) billion dollars/year between 2002 (t = 0) and 2006 (t = 4). the advertising revenue in 2002 was $5.9 billion.† (a) find an expression f(t) giving the advertising revenue in year t.
Answers: 1
question
Business, 22.06.2019 10:30
Describe three scenarios in which you might utilize mathematics to investigate a crime scene, accident scene, or to make decisions involving police practice. be sure to explain how math is used in police as they work through each scenario.
Answers: 1
question
Business, 22.06.2019 13:10
A4-year project has an annual operating cash flow of $59,000. at the beginning of the project, $5,000 in net working capital was required, which will be recovered at the end of the project. the firm also spent $23,900 on equipment to start the project. this equipment will have a book value of $5,260 at the end of the project, but can be sold for $6,120. the tax rate is 35 percent. what is the year 4 cash flow?
Answers: 2
question
Business, 22.06.2019 14:00
The following costs were incurred in may: direct materials $ 44,800 direct labor $ 29,000 manufacturing overhead $ 29,300 selling expenses $ 26,800 administrative expenses $ 37,100 conversion costs during the month totaled:
Answers: 2
You know the right answer?
In his book The Optimum Quantity of Money, Milton Friedman talks about a helicopter dropping $2,000...
Questions
question
Biology, 08.11.2019 17:31
question
Mathematics, 08.11.2019 17:31
Questions on the website: 13722367