How is the US government a mixed economy?

Answers

Answer 1

The United States government is a mixed economy, meaning it is composed of a combination of public and private sectors.

The public sector, also known as the government, is responsible for providing services such as healthcare, education, and infrastructure, while the private sector is made up of individuals and businesses that drive the economy through investment and innovation.

The government regulates and sets guidelines for the private sector to ensure fair competition and protect the interests of consumers. The government also provides resources such as tax credits and subsidies to help companies stay competitive and encourage growth.

By combining the strengths of the public and private sectors, the US government is able to achieve a more balanced and sustainable economic system.

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Related Questions

establish a national bank, pay off war debt, pass whiskey tax, create protective tariff

Answers

Hamilton's Financial Plan

Explanation:

Hamilton's financial strategy included three components. The first was the central government's assumption of the state's war debts in order to boost national unity and the government's legitimacy.
The second step was the establishment of the Bank of the United States to provide the new nation with a more stable, common currency.
The third was to enact a protectionist policy in which the central government subsidized local manufacturers and imposed high tariffs on imports in order to stimulate American industry.  

The following five elements comprise Hamilton's financial strategy.

The creation of new national debt.The establishment of a bank in the United States.Set tariffs on manufactured goods to encourage plant growth.Determine the creditworthiness of the new country.Impose a tax on alcohol producers to increase revenue.  

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d. if net fixed assets increased by $28,000 during the year, what was the addition to nwc? (do not round intermediate calculations.)

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There won't be any modifications to the Net Working Capital if net fixed assets increased by $28,000 during the course of the year.

The company's capacity to pay short-term obligations is shown by its net working capital. We also meant liabilities that needed to be paid off within a year or an operating cycle when we used the term "short-term obligations."

Only current assets and current liabilities are taken into account when calculating net working capital. The only thing that can alter current assets and liabilities is current liabilities. Furthermore, because a fixed asset is a non-current asset, any modifications won't have an impact on net working capital. As a result, there is no increase in net working capital during the year.

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according to walt w. rostow, during which of the following stages of economic development do people start to look toward the future, to save and invest money, and to discard traditional values? group of answer choices the technological maturity stage the traditional stage the high mass consumption stage the take-off stage

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According to Walt w. Rostow, during d) the take-off stage of economic development people start to look toward the future, to save and invest money, and to discard traditional values.

In the take-off stage of economic development, as outlined by Walt W. Rostow, people begin to shift their focus from the present to the future.

People start to save and invest money, rather than simply spending it, and traditional values start to be questioned and discarded in favor of a more forward-thinking approach.

This transition marks a significant change in how people view their financial future, and the potential for growth and development.

During this stage, people begin to shift their focus from the present to the future, taking steps to save and invest money in order to secure their future. As a result, traditional values and habits can be discarded in favor of more modern practices.

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Which one of the following characteristics applies to a limited liability company?
A. Available only to firms having a single owner
B. Limited liability for limited partners only
C. Taxed similar to a partnership
D. Taxed similar to a C corporation
E. All income generated is totally tax-free

Answers

The one of the following characteristics applies to a limited liability company Available only to firms having a single owner.

What one of the following describes a limited liability company?

A limited liability company's characteristics include limited liability, independent legal existence, flexible taxation, and ease of operation.

A limited liability partnership has which of the following characteristics?

LLPs have a few key characteristics, including: They exist in law as a distinct entity from its members. They offer its members the benefit of reduced liability. They pay partnership taxes.

What three qualities define a limited liability business (often referred to as an LLC)?

A limited liability company or LLC has the following traits: It needs to be approved before any paperwork is submitted to the Secretary of State. It may have one or more members who are its owners. It may be managed by members or by managers. Everyone has a small amount of obligation.

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Can a 15 year old have a bank account in Pakistan?

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In Pakistan, a minor cannot open a bank account on their own, but they can have a joint account with their parent or guardian.

Banks generally have age restrictions for opening bank accounts, with some requiring the account holder to be at least 18 years old, while others allow minors under 18 to open an account with the permission of a parent or guardian.

A minor account is a type of account that can be opened for a child below 18 years of age. The account will be opened jointly with the parent or guardian, who will act as the account holder, and the child will be added as a joint account holder.

The parent or guardian is responsible for managing the account and making transactions on behalf of the child.

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T/F Market power and externalities are two possible causes of market failure.

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Two potential reasons for market failure are market power and externalities. It's accurate to say this.

Which two elements are the root causes of market failure?

The two fundamental causes of market failure are market power and externalities. A beneficial externality has an effect on the third party. Public education, for instance, serves everyone in society, including the pupils.

What do a market power and an externality actually mean?

Monopoly/Market Power refers to the circumstance in which one vendor holds the bulk of the market, sets pricing, and excludes new competitors. Externalities. impacts, both positive and negative, of production or consumption on those who are not immediately affected.

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which of the following are key roles of financial institutions? check all that apply. they prevent investors from losing money in the event of an economic downturn. they offer deposit accounts that fit the needs of surplus units. they diversify their loans, which allows them to absorb defaulted loans better than individual surplus units. they bridge the information gap between surplus and deficit units with their expertise in evaluating credit worthiness.

Answers

Financial institutions provide vital economic roles, such as managing the earnings plan of an economy, as well as delivering liquidity, maturity, and sect intermediation and diversification services, providing investing expertise, search, and monitoring services.

A financial institution is a company employed in the business of marketing with economic and monetary trades such as deposits, loans, investments, and money exchange. Financial institutions encompass a wide spectrum of business operations within the financial assistance sector incorporating banks, trust companies, insurance companies, brokerage corporations, and asset dealers. Financial institutions can differ by size, extent, and geography.

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Who determines price in a free market?

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A free market is one where market forces control the prices of products and services. This translates to the fact that demand and supply interact to determine commodity prices in a free market economy.

The desire of consumers and producers to engage in purchasing and selling is represented by demand and supply. When buyers and sellers fix a particular prize and  makes exchange of products on that price then it is a free market.

An equilibrium price, is market clearing price,  it is the agreed-upon price when buying and selling of product takes place. Demand and supply influences the price of a product.

Technology is one particular supply shifter. By lowering the cost of production per unit of output, technology has had a significant impact on agriculture, causing the supply curve to shift quickly outward.

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which statement is true? a all securities sold through a broker-dealer in a state must be registered in the state b an agent may maintain his registration without being affiliated with a broker-dealer c an agent's registration can never be revoked without an opportunity for a hearing d a broker-dealer cannot also be registered as an investment adviser at the same time

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Option c: An agent's registration can never be revoked without an opportunity for a hearing is true.

Registration is the process by which a company files the required documents with the SEC prior to an initial public offering (IPO).

The two components to the registration are an investor prospectus and a private filing with the SEC.

Registration consists of important details about the offer, such as:  Prices, Dates, Financial Statements, and Legal Matters.

The term "registration" also refers to when a broker-dealer submits the proper documentation to legally sell securities.

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Identify the statements that describe the Works Progress Administration (WPA).

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The WPA hired artists and writers for projects including painting murals, writing guidebooks, and authoring histories of the United States.

The wireless Alliance intended WPA as an intermediate degree to take the location of WEP pending the supply of the full IEEE 802.11i standard. WPA will be implemented via firmware improvements on wireless community interface playing cards designed for WEP that started out transport as some distance lower back as 1999. but, because the adjustments required in the wi-fi get admission to factors (APS) were greater substantial than those needed at the network cards, maximum pre-2003 APs couldn't be upgraded to help WPA.

WEP used a sixty-four-bit or 128-bit encryption key that needs to be manually entered on wireless to get entry to points and gadgets and does not trade. TKIP employs a per-packet key, which means that it dynamically generates a new 128-bit key for each packet and as a consequence prevents the styles of assaults that compromised WEP.

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The increasing movement of goods, services, and capital across national borders. globalization

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Globalization refers to the increasing movement of goods, services, and capital across national borders.

What is globalization?

The process of cross-border trade and unrestricted resource inflow between colorful nations of the world is known as globalisation.

Technology, ideas, knowledge, capital, mortal coffers, and culture are all integrated on a global scale.

To cut operating costs, numerous businesses outsource or expand internationally. By doing this, you can pierce cheaper labor and further coffers that are available abroad. Given its numerous benefits and downsides, globalization is a crucial conception in economics. It has come under fire for the unstable distribution of wealth and power among a small number of businesses that control the global request.

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is a fee charged for using borrowed money for a purchase.

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This is because of the interest and fees that a lender charges you for using their money. A finance charge is another name for it. The amount you will be charged for the loan is known as a finance charge.

What is the cost of borrowing money to make a purchase?

The cost of borrowing money is paid in the form of interest. The interest rate used to calculate interest is typically expressed as an annual percentage rate (APR), whereas interest expense or revenue is frequently expressed as a dollar amount.

Is there a cost associated with making a loan?

There are typically two fees to pay when you get a loan: interest and fees The amount of money a bank charges you for letting you use its money is called interest. There are two possible interest rates: fixed and variable. The term "fixed rate" refers to a loan whose interest rate never changes.

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during 2020, royce has an adjusted gross income (agi) of $40,000. what is the maximum amount royce can deduct for qualified contributions charitable made to qualified organizations if he itemizes his deductions?

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If Royce itemizes his deductions, he can deduct up to 50% of his AGI for contributions made to qualified organizations. In this case, the maximum amount Royce can deduct for charitable contributions is $20,000.

What do you mean by qualified organizations?

Qualified organizations are those organizations that have been certified by a governing body or have been approved by a regulatory agency. These organizations have the legal ability to perform the activities they have been approved for. They have met the necessary standards and have proven that they can provide safe, reliable services. Qualified organizations must also comply with all applicable laws and regulations. They must also demonstrate financial stability and have a solid track record of success. Qualified organizations are essential in providing safe and reliable services to their customers.

So, the maximum amount Royce can deduct for charitable contributions is $20,000.

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an agent and her customer reside in state a, where the agent is registered. the agent is vacationing in state b, where her client also happens to be vacationing. while in state b, the agent makes an offer of securities to the client. who has jurisdiction over the transaction?

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Jurisdiction over the transaction would depend on the laws of the states involved and the specific circumstances of the transaction.

Generally, if the agent is registered in state A and is making an offer of securities to her client, who is also in state A, the transaction would fall under the jurisdiction of state A.

However, if the agent and her client are both vacationing in state B and the agent makes an offer of securities to the client while in state B, the transaction would fall under the jurisdiction of state B.

It's important to note that even though the agent is registered in state A if she is conducting business in state B, she would have to comply with the securities laws of state B as well. The specific laws of state B and the circumstances of the transaction will determine the jurisdiction over the transaction.

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how many different types of heinekens are available?

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Heineken beer brews all around the world in more than 70 countries. A global range also includes more than 300 international, local, regional and craft beers.

Or


Heineken N.V. is a Dutch brewer which owns a worldwide portfolio of over 170 beer brands, mainly pale lager, though some other beer styles are produced.

do you believe public policy should aim to reduce earnings inequality, poverty, both, or neither? explain your reasoning.

Answers

Yes, public policy should aim to reduce earnings inequality and poverty as well. Economic inequality is perhaps largely troubling when it is not the result of endeavor or talent but instead is determined by the circumstances under which a child grows up.

Income is a flow of money acquired, often estimated on a monthly or annual basis; wealth is the total value of all assets, comprising money in bank accounts, financial investments, a pension fund, and the worth of a home. Redistribution means taking income from those with higher incomes and delivering income to those with lower incomes. Public policy can attempt to create a ladder of chances so that, even though all children will never come from comparable families and attend identical schools, each child has a plausible chance to attain an economic niche in society established on their interests, desires, talents, and efforts.

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How did civilians on the American home front help the war effort?

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Numerous Americans upheld the conflict exertion by buying war bonds. Ladies supplanted men in sports associations, symphonies, and local area establishments. Americans became 60% of the produce they consumed in "Triumph Nurseries".

At home, purchasing war securities or investment funds stamps was likely the most well-known method for supporting the conflict. At the point when individuals purchased security or a reserve funds stamp, they were loaning cash to the public authority. Their cash would be taken care of with a premium after the conflict.

Numerous Americans elected to shield the country from foe bombarding or attacks. They prepared medical aid, airplane spotting, bomb evacuation, and putting out fires. Air assault superintendents drove practice drills, including power outages. By mid-1942 more than 10 million Americans were respectful protection volunteers.

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Which of these is NOT a flow that moves up and down the supply chain? procedural

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A flow that does not flows up and down the supply chain is a procedural flow.

In a supply chain, what moves upstream and downstream?

The actions associated with the organization's suppliers—those parties who find raw materials to send to the manufacturer—are all part of the upstream supply chain. The term "downstream supply chain" describes actions taken after product manufacture, namely the act of transferring the good to the buyer. The four components of the supply chain—integration, operations, purchasing, and distribution—work together to create a path to competitiveness that is both affordable and effective.Any supply chain will experience three basic sorts of flows: the flow of materials/goods, the flow of currency, and the flow of information.

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What describes the number of deaths in a year compared to the number of people in a select group?
Mortality Rate
When calculating life insurance premium rates, which component would an agent’s commission fall under?
Insurer’s expenses
-is a component of the premium
Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose?
Interest option
A beneficiary receives only the death benefit earnings in which settlement option?
Interest option
What is NOT a life insurance settlement option?
Extended term option
When calculating life insurance premium rates, which component is affected by an insured’s age and gender?
Mortality
Premiums are best described as?
The amount an insured pays per unit of coverage
A creditor would be allowed rights to life insurance policy proceeds if which type of beneficiary was chosen?
The insured’s estate
How are death benefits that are received by a beneficiary normally treated for tax purposes?
Exempt from federal income taxes
The probability of death, listed by year, is determined in?
Mortality tables
-gives a measure of the number of deaths in a given population over a certain period of time
What is considered the automatic mode of settlement for life insurance policy proceeds
Lump-sum
What is NOT a component when determining policy premiums?
Dividends
Level premium term life insurance policies
Have premiums that are averaged over the policy period
Over the course of a year, which premium payment mode is most expensive?
Monthly
Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen?
Fixed amount
What is the price of insurance for each exposure unit?
Rate
A spendthrift clause in a life insurance policy ______?
Restricts the ability of the beneficiary to assign benefits
What is NOT an insurer policy expense?
Premiums
What premium payment frequencies are not typically available to a policy owner?
Biweekly
A policy owner can receive an immediate payment before the insured dies by using a _____?
Viatical settlement contract
-transaction that involves an immediate payment to the policy owner prior to the death of the insured
A policy owner is prohibited from making any changes to the policy without the beneficiary’s written consent under which beneficiary designation?
Irrevocable beneficiary
What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured?
Specified amount of money
What happens to the total amount of premium paid for an insurance policy when the payment frequency increases?
Increases
Proceeds from a life insurance policy are protected from the beneficiary’s creditors by which clause?
Spendthrift trust clause
An example of naming a beneficiary by class would be?
"To the children born of my union with Ned Jackson."
What is affected by the frequency of an insurance policy’s premium payments?
Cost
A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the ______?
Named living primary beneficiaries
Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved in a car accident where Pat dies instantly and Karen dies 5 days later. Which policy provision will protect the rights of the contingent beneficiary to receive the policy benefits?
Common disaster clause
-a policy owner can be sure that if both the insured and the primary beneficiary die within a short period of time, the death benefits will be paid to the contingent beneficiary
A tax free Section 1035 Exchange of a life insurance policy to a different policy is permitted if it occurs ______?
From insurer to insurer and no cash is received by the policy owner
What would be an expense factor in an insurance program?
Mortality Costs
What factors help determine an insured’s life insurance premium?
Avocation (hobby)
-premiums are determined by several factors pertaining to the insured, such as age, occupation, and avocation (hobby)
Naming a contingent beneficiary as "all surviving children" is described by which term?
Class designation
If the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if _____?
The insured outlived the beneficiary
*common disaster provision

Answers

The concept here is Agent. In legal terminology, an agent is a person who has been authorized by law to act on behalf of another person or entity.

1)  mortality rate

2)The agent's commission is considered part of the insurer's expenses and is a component of the premium.

3) the beneficiary should select the interest option.

4)interest settlement option.

5)extended term option

6) Mortality is the component of a life insurance premium that age and gender affect.

7) The amount you pay for covered  services before your insurance plan starts.

8)Creditors have rights to life insurance policy proceeds when the beneficiary is the insured's estate.

9)Death benefits that are received by a beneficiary are generally exempt from federal income tax.

10) Mortality tables

11) The lump-sum cash settlement is considered the automatic (or "default") option for most life insurance contracts.

12)Dividends are not a component when determining policy premiums.

13) monthly

14) fixed amount

15)The price of insurance for each exposure unit is called the rate.

16)The spendthrift clause protects life insurance proceeds from creditors.

17)Restricts the ability of the beneficiary to assign benefits

18)Premiums

19) Biweekly

20)Viatical settlement contract

21) Irrevocable beneficiary

22) Specified amount of money

23) Increases

24) Spendthrift trust clause

25) "To the children born of my union with Ned Jackson."

26) Cost

27) Named living primary beneficiaries

28) Common disaster clause

29) From insurer to insurer and no cash is received by the policy owner

30) Mortality Costs

31) Avocation (hobby)

32) Class designation

33) The insured outlived the beneficiary

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a company paid $500 for supplies that it purchased last month. the decrease in liabilities would be recorded with a

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A company paid $500 for supplies that it purchased last month. the decrease in liabilities would be recorded with a debit of $500 to the accounts payable account.

Accounts payable represent the amount of money a company owes to its suppliers for goods or services that have been received but not yet paid for.

In this case, the company paid $500 for supplies that it purchased last month, which means that its accounts payable liability has been reduced by $500. This decrease in liabilities is recorded in the company's accounting records by making a debit entry to the accounts payable account for $500.

Debiting the accounts payable account effectively reduces the outstanding balance of the company's liabilities and increases its cash balance by the same amount, which reflects that the company has fulfilled its obligation to its supplier by making payment.

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are you subject to any agreements that may apply to your employment at bridgewater associates (e.g. non-compete)?

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Yes, an employee is subject to any agreements that may apply to your employment at Bridgewater associates.

Define a non-compete agreement.

A non-compete agreement is a contract or a provision in an employment contract that prohibits you from working for rival companies for a predetermined amount of time, typically after you leave your current position. An employee's ability to work after their employment has ended is restricted by a non-compete agreement, which must be signed by both the employer and the employee.

Non-compete clauses are legally binding in the majority of states, but they must be fair, not excessively onerous, and frequently have to benefit the employer. Non-competition agreements have risks if they are disregarded, you risk being sued by your former employer. 

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ase company sold goods, receiving $35,000 in cash and $15,000 on credit. how much revenue should it record under the accrual basis of accounting?

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Under the accrual basis of accounting, revenue should be recorded when it is earned, regardless of when payment is received. Therefore, the company should record $50,000 in revenue.

Revenue can be meant as the total earnings a company generates through its core operations like sales of products or services, rents on a property, recurring payments, interest on borrowings, etc. Revenue can be determined before removing any expenses, such as discounts and returns. Revenue in business means all of the value it has gotten. Income/profit usually incorporates other facets of a business.

Revenue that record under the accrual base of accounting = company sold goods in cash+ company sold goods in credit

Revenue that record under the accrual base of accounting = $35,000 + $15,000

Revenue that record under the accrual base of accounting = $50,000

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all of the following are objectives of internal control except question content area bottom part 1 a. to ensure accurate and reliable accounting records. b. to comply with legal requirements. c. to maximize net income. d. to safeguard assets.

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All of the following are objectives of internal control except question content area bottom part to maximize net income.

Internal control refers to a set of policies and procedures implemented by an organization to achieve specific goals, such as:

a. Ensuring accurate and reliable accounting records: This objective ensures that financial records accurately reflect the transactions of the organization, helping to prevent errors, fraud, or misrepresentation.

b. Complying with legal requirements: This objective ensures that the organization follows relevant laws and regulations, including tax laws, labor laws, and financial reporting standards.

c. Safeguarding assets: This objective aims to protect the assets of the organization from theft, fraud, or misuse, ensuring that they are used for the benefit of the organization.

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what does the term strengths refer to in swot analysis? multiple choice question. the positive aspects of the external environment the negative attributes of a firm the positive internal attributes of a firm the negative aspects of the external environment

Answers

The optimal fit between external trends (opportunities and threats) and internal capabilities can be discovered through a SWOT analysis. A resource or capacity that the organisation can employ well to accomplish its goals is considered a strength.

What is SWOT analysis?

SWOT analysis is a technique for identifying and analysing internal strengths and weaknesses as well as external opportunities and threats that have an impact on current and future operations and aid in the formulation of strategic goals. SWOT evaluations aren't just for businesses. Using a SWOT analysis, a person or organisation can determine their strengths, weaknesses, opportunities, and threats in relation to project planning or competitive business environments. Situational analysis or situational evaluation are other names for it.

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miller company reports the following assets from the last two years: 2020 2019 current assets: cash and cash equivalents $2,100 $ 1,900 accounts receivable 1,800 1,500 merchandise inventory 1,300 1,000 prepaid expenses 1,400 2,300 total current assets 6,600 6,700 other assets 16,000 14,000 total assets $22,600 $ 20,700 using horizontal analysis, what is the percentage of increase in cash and equivalents?

Answers

The percentage of increase in cash and equivalents from 2019 to 2020 is 10.53% using the formula % Change = (Current Year - Previous Year) / Previous Year.

Horizontal analysis is a method of financial statement analysis that compares financial data over a period of time, usually two or more years.

To use this method, we need to compare the data from the two years and calculate the percentage change between them.

In this case, we are looking at the percentage of increase in cash and equivalents from 2019 to 2020. To calculate this, we need to use the following formula:

% Change = (Current Year - Previous Year) / Previous Year

Using this formula, we can calculate the percentage of increase in cash and equivalents as follows:

% Change = (2,100 - 1,900) / 1,900 = 10.53%

This means that cash and equivalents increased by 10.53% from 2019 to 2020.

It's important to note that horizontal analysis helps in identifying trends and patterns in financial data, but it's not enough to determine the financial health of a company.

It should be used in conjunction with other methods of financial analysis, such as vertical analysis or ratio analysis.

In conclusion, the percentage of increase in cash and equivalents from 2019 to 2020 is 10.53%.

Horizontal analysis is a useful tool for identifying trends and patterns in financial data but should be used in conjunction with other methods of financial analysis to understand the financial health of a company.

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the model law that is significant for business and regulates sales and other rules affecting commerce is known as the: blank . multiple choice question.

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The Uniform Commercial Code (UCC) is a model law that is significant for business and governs sales and other laws affecting trade.

The Uniform Commercial Code (UCC), a comprehensive body of law, regulates all commercial activities in the United States. Instead of being a federal legislation, every state has adopted it. Uniformity of law is essential for interstate business activities.

Due to the widespread adoption of the Uniform Commercial Code (UCC), businesses can enter into contracts with confidence that the terms will be consistently upheld by courts in all American jurisdictions. Because of the increased security of commercial links, companies may grow and the American economy does well. For this reason, the Uniform Commercial Code (UCC) has been referred to as "the backbone of American commerce."

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what question is missing from this model of the steps for analyzing ethical dilemmas in your book?
i. Gather the facts.
ii. List missing information and your assumptions.
iii. Generate list of alternatives and apply ethical decision-making models.
iv. Evaluate resolutions for cost, legality and impact.
v. Recommend and take action

Answers

List each stakeholder's interests (concerns) in the dilemma question is missing from this model of the steps for analyzing ethical dilemmas in your book.

What are the procedures for dealing with moral dilemmas?

Determine the moral aspects and justifications that apply. assemble all information that is available and relevant to the moral considerations at play. Sort the moral factors according to their significance as they relate to the case.

Do it involve right and wrong, rights and obligations, human welfare, or people's best interests? is the first question you should ask yourself. If the answer to each of these questions is no, the circumstance is not morally troubling, and you can address it just like any other work-related issue.

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Is an economic system in which private citizens own and use the factors of production to generate profits the US economy is based on?

Answers

According to a popular understanding, capitalism is an economic system in which individual actors own and control property according to their interests and where supply and demand freely set market prices in a way that benefits society.

capitalism:

Capitalism is an economic system that relies on private ownership of the means of production and their commercial application. Key components of capitalism include capital accumulation, competitive markets, the price structure, private property, the acknowledgment of property rights, voluntary trade, and wage labour. According to a popular understanding, capitalism is an economic system in which individual actors own and control property according to their interests and where supply and demand freely set market prices in a way that benefits society.

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assuming a system of flexible exchange rates between mexico and the united states, indicate whether each of the following would cause the mexican peso to appreciate or depreciate, other things equal: a. mexico encounters severe inflation b. the u.s. economy moves into a severe recession c. interest rates in the u.s. increase

Answers

Under a system of flexible exchange rates between Mexico and the United States, the mexican peso will be:

Depreciated when Mexico encounters severe inflationDepreciated when the US economy moves into a severe recessionDepreciated when interest rates in the US increase

Flexible exchange rates system refers to the exchange system where the exchange rates between 2 countries are dependent to the supply and demand of money in the market. The value of the currency will be fluctuated freely based on any changes in the demand and supply of the foreign exchange. The government banks would take no involvement on deciding the exchange rate in this system.

Next, we will discuss each possible scenario.

When Mexico encouters severe inflation, the price of domestic products will boost uncontrolled. Hence, the value of Peso will be decreased. Many people will be unwilling to keep their Peso since its value is decreasing. This condition will encourage people to let go more of their Peso, shifting the supply curve of Peso to the right, This shift will depreciated Peso value in the exchange market.

When the US economy moves into a severe recession, the whole economic activity in the US will be in downturn. This condition include the exchange activity between to countries. The decrease in export and import activities between Mexico and the US will lower the demand for Peso in the market. Hence, the Peso value will be depreciated since the demand curve of Peso in the exchange rate will shift to the left.

When interest rate in the US increase, more people will prefer to save their money in the bank. The decrease of the supply of dollar in the exchange market will affect the demand of Peso as well. This condition will shift the demand curve for Peso to the left and depreciate the Peso value.

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which of the following is an example of a positive, as opposed to normative, statement? a. prices rise when the government prints too much money. b. decreasing inflation should be a top priority since inflation is more harmful to the economy than unemployment. c. when public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency. d. welfare payments should be increased because they lead to a better world for everyone.

Answers

A. Prices rise when the government prints too much money.The statement "Prices rise when the government prints too much money" is an example of a positive statement.

A positive statement is a statement that is based on facts and is tested through empirical observation. This statement is based on the observation that when the government prints too much money, prices tend to rise. It is a statement of fact, and not a value judgment or recommendation.

When prices in an economy increase or when the purchasing power of money decreases, this is referred to as inflation. Inflation may have a number of factors, including increasing aggregate demand, rising salaries, and a growth in the money supply, according to economists.

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