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Rzqust [24]
2 years ago
10

The crowding-out effect stresses that Group of answer choices an increase in government expenditures will stimulate aggregate de

mand and, thereby, help to prevent recessions. an increase in taxes will restrain aggregate demand and, thereby, help to control inflation. additional government borrowing to finance a larger deficit will increase the demand for loanable funds, causing real interest rates to rise. a budget deficit is a highly effective tool with which to combat recessions. both a and d are correct.
Business
1 answer:
Anna007 [38]2 years ago
8 0

The crowding-out effect is such that additional government borrowing to finance a larger deficit will increase the demand for loanable funds, causing real interest rates to rise.

<h3>What is the crowding-out effect?</h3>

The crowing-out effect refers to when the government borrows so much money that they make it hard for businesses to borrow and invest in new projects.

This happens because the government borrowing will decrease the amount of funds that can be borrowed in the market which will lead to higher interest rates for the remaining funds.

Find out more on crowding out at brainly.com/question/995089.

#SPJ1

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suppose your club is selling candles to raise money. It costs $100 to rent a booth from which to sell the candles.If the candles
Viefleur [7K]

Answer:

Number pf candles is equal to 25

Explanation:

We have given cost of rent = $100

Cost price of one candle = $1

And selling price of one candle = $5

Let the number of candles = x

So total expense =100+x\times 1=100+x

Total earning =5\times x=5x

According to question expense is equal to earning

So 100+x=5x

4x=100

x = 25

So number pf candles is equal to 25

6 0
4 years ago
Pollution and raw material shortages constitute immediate threats to some firms buy are often opportunities for other firms. The
Oksana_A [137]

Answer: NATURAL

Explanation: Pollution is the release of harmful substances or materials into the environment,this can occur through households or industrial Activities. Pollution can also be defined by the presence of materials in very high amount capable of causing hazards. Pollution directly affects the Natural environment and distorts, it creates threats and reflect changes in which macroenvironment.

7 0
3 years ago
Read 2 more answers
The basic difference between macroeconomics and microeconomics is:
I am Lyosha [343]

Answer:

The correct answer is option C.

Explanation:

Microeconomics is the branch of economics that studies the behavior of individual economic agents such as a single firm or a single consumer. For instance, it deals with variables such as demand for a single consumer or a supply from a single firm.  

Macroeconomics is that branch of economics that studies the entire economy as a whole. It deals with variables such as inflation, unemployment rate, etc.

3 0
3 years ago
sarah Jones wants to deposit $2,000 per year into an account earning 4 percent for the next 3 years, so she can purchase a used
andre [41]

Answer:

Compounding formula would be used here which is as under:

Future Value = Present value * (1+r)^n

FV = (PV is $2000) *  ( 1 + 4%)^ 3 number of years

Remember that r is the return that is 4% that Sarah Jones will receive.

So

FV = $2250

So this is the amount that she will receive after three years. I would recommend her to invest in ordinary shares (take higher risk for higher return) so that she is able to buy a better car.

5 0
3 years ago
Paulson Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company h
Ilia_Sergeevich [38]

Answer:

predetermined overhead rate per machine hour $2.10

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

The overhead rate will be calculate as the sum of the expected cost divide by a cost driver in this case; machine hours

<u>Overhead expected cost:</u>

rent on factory building                     13,500

depreciation on factory equipment   6,500

indirect materials                               10,000

insuance on factory equipment     <u>   12,000  </u>

Total overhead                                 42,000

machine hours 20,000

42,000 / 20,000 = 2.10

7 0
3 years ago
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