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2 years ago

A ____________________________ is one economic mechanism by which government borrowing can crowd out private investment.

1 answer:

4 0

A higher interest rate is one economic mechanism by which government borrowing can crowd out private investment. This is further explained below.

<h3>What is the economic mechanism?</h3>

Generally, A mechanism is a mathematical representation of the organizations that govern and coordinate economic activity.

In conclusion, Increasing the interest rate is one of the ways in which the government may stifle private sector investment. This will be detailed in further detail in the following paragraphs.

Read more about the economic mechanism

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Financial markets make the process of borrowing large amounts of money easier because they simplify the negotiation process betw

Mekhanik [1.2K]

Answer:

Reducing risk

Explanation:

The two ways by which risk can be managed are;

✓ Risk avoidance

✓ risk reduction

risk reduction are activities needed to bring about lower likelihood of risk as well as severity of loss. We can reduce risk through reduction of allocation of our resources to risky situation. An example of reducing risk is in the instance of Financial markets that are making the process of borrowing large amounts of money easier because they simplify the negotiation process between borrowers and lenders.

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2 years ago

Honduras is a small economy in central america. it keeps a fixed exchange rate with the us. capital is perfectly mobile. you may

rosijanka [135]

Answer:

Given that Honduras is a small economy in Central America, and it keeps a fixed exchange rate with the US, and capital is perfectly mobile, but interest rates are three percent in the US and six percent in Honduras, the explanation of the difference in these interest rates are as follows:

Honduras has a higher interest rate, meaning that its sovereign bonds pay higher values than the American ones, as well as its banks also pay higher interests on their investments compared to American banks.

This is so for a double reason: on the one hand, because the Honduran economy is less reliable than the American economy, which is larger and therefore more solvent and capable of overcoming eventual crises, with which the risk of default is less.

On the other hand, the Honduran economy is more dependent on foreign investment, so it must offer higher interest rates to attract such investments.

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2 years ago

Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 119,000 crowns. It received payment

Natalka [10]

Answer:

Exchange rate on September 15: 1 Crown = $0.61; 119,000 Crown = (119,000*$0.61) = $72,590.

September 30 = (119,000*0.65) = $77,350.

October 15 = (119,000*$0.60) = $71,400.

JOURNAL ENTRY

Date Account Debit Credit

15-Sep Account receivable $72,590

Sales $72,590

(Sale to a foreign customer for 119,000 crown Exchange rate = $0.61)

30-Sep Account receivable $4,760

Foreign currency exchange gain $4,760

($77,350-$72,590)

15-Oct Foreign currency exchange loss $5,950

Account receivable $5,950

($71,400-$77,350)

Cash $77,350

Accounts Receivable $77,350

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3 years ago

What is another term for liability?<br> A. asset<br> B. notes<br> C. debt<br> D. accounts

Fiesta28 [93]

Answer:

Another term for liability is debt, because both of these terms are accountable for money charges and assist needed :3

Explanation:

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3 years ago

The forces in _________ collisions with another vehicle, tree or pillar are enormous as the momentum and built up energy are rel

Volgvan

A.) head-on.
rear-ending cars are going the same direction as you, so they don't hit as hard.
trees aren't part of multi-vehicle crashes (hopefully)

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3 years ago