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nikitadnepr [17]
2 years ago
15

Assume that if there were no crowding out, an increase in government spending would increase GDP by $100 billion. On the other h

and, if there had been full crowding out, then GDP would have
Business
1 answer:
BlackZzzverrR [31]2 years ago
7 0

If there had been full crowding out, then GDP would have increased by less than $100 billion.

<h3>What is the meaning of crowding out?</h3>

Most often, borrowing is used by nations to cover their budget deficits. When governments borrow, they are in competition with everyone else in the economy for the limited quantity of savings that are available. This rivalry causes the real interest rate to rise and private investment to fall. The term "crowding out" refers to this process.

<h3>Affect on economic growth</h3>

Because of the "crowding out effect," which prevents private investment from growing as much as it would have otherwise, economic growth is slowed down. With a smaller capital stock, the economy will experience slower development in terms of output and labor's marginal productivity.

Learn more about crowding out here:

brainly.com/question/7455899

#SPJ4

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Explain why the basic economic problem will even affect Bill Gates (Founder and Chairman of Microsoft and one of the world’s wea
Grace [21]
<span>The basic economic problem will affect Bill Gates who is one of the the world's wealthiest people because scarcity of resources is more so related to goods and services, and not how much money one may have. While he may be able to buy all the goods and services he wants as many as he wants for a unlimited amount time, he could only have access to those things if they are available.</span>
8 0
3 years ago
You own a house that you rent for $1,675 per month. The maintenance expenses on the house average $315 per month. The house cost
Trava [24]

Answer:

The value that should be placed when analyzing the option of using the house as a professional office is $242,880

Explanation:

In calculating cash flow of a project, opportunity cost is very important hence be made part of the cash flow

Incremental cash flow = Appraisal on the house - Real estate fees

=$264,000 - $21,120

= $242,880

7 0
3 years ago
Read 2 more answers
Adams Industries holds 42,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exe
olga2289 [7]

Answer:

investment in FedEx = 4410000

Unrealized holding gain = 420000

Explanation:

given data

FedEx common stock = 42,000 shares

market value = $95

market value = $105

to find out

what amount will it be reported in the 2019 balance sheet

solution

we know that It is coming under available for sale security since the shares hold is less than majority of outstanding shares

and here

investment in FedEx =42,000  × 105

investment in FedEx = 4410000

and

Unrealized holding gain is = ( 105 - 95 ) × 42000

Unrealized holding gain = 420000

5 0
4 years ago
Think of the market for loanable funds. A policy that induces people to save more or that reduces the governmet's budget deficit
Lisa [10]

Answer:

shifts the supply of loanable funds and reduces interest rates.

Explanation:

The supply and demand curves of money (loanable funds) work in the same way as every other good or service. When the supply of a good or service increases, the supply curve shifts to the right, increasing total quantity supplied and decreasing equilibrium price. When we are talking about loans, the equilibrium price is the interest rate.

8 0
3 years ago
What is the definition of the time/value of Money A:the relationship between time money and the rate of return and their effect
jenyasd209 [6]

Answer:

The answer is B

Explanation:

6 0
3 years ago
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