Which of the Following Policies Shifts the AD Curve the Farthest

question 31

Multiple Choice

Which of the following policies shifts the AD curve the farthest leftward?

• A)an increase in taxes of $10 billion
• B)a decrease in government expenditure of $10 billion
• C)a simultaneous increase in government expenditure of $10 billion and taxes of $10 billion
• D)a decrease in taxes of $10 billion
• E)an increase in government expenditure of $10 billion

Understand the impact of global supply chain decisions on performance dimensions such as labor costs, order delivery, and supply chain visibility.

Recognize the significance of supply chain design decisions on the competitiveness and flexibility of the supply chain.

Comprehend the financial implications of supply chain decisions including NPV calculations and the effects of taxes and tariffs on offshored goods.

Identify strategies to manage risks and costs associated with global supply chains, including transportation costs and supply chain disruptions.

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Definitions:

Financial Leverage

The use of borrowed money to multiply financial performance in terms of ROE and EPS.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly a right to vote at shareholders' meetings.

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including assets and working capital.

Debt

An obligation owed by one party to a second party; in financial terms, it typically refers to money borrowed by one party from another.