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Karolina [17]
2 years ago
14

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

Business
1 answer:
joja [24]2 years ago
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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What does a future value measure
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Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth in the future.

Future Value = Present Value (1 + (Interest Rate x Number of Years)) Let's say Bob invests $1,000 for five years with an interest rate of 10%. The future value would be $1,500.
3 0
2 years ago
An agent wants to sell a highly valuable unregistered, nonexempt security to a customer. The agent has the client sign a waiver
xxTIMURxx [149]

Answer:

D) illegal because provisions of the Uniform Securities Act cannot be waived

Explanation:

According to the Uniform Securities Act, it refers to that act in which there is a uniform law or the same law that is to be followed state to state

Since in the question it is mentioned that the agent wants to sell a highly valuable i.e not registered also there is a client sign so it would be sold as per the act but this scenario represents the illegal act and also it could not be waived off.

6 0
3 years ago
in the absence of trade, the domestic price of soybeans is pn. if the world price of soybeans is pw, which of the following will
notka56 [123]

In the absence of trade, the domestic price of soybeans is pn. if the arena charge of soybeans is pw,b. the home charge of soybeans will rise, and home intake will fall.

The required details about domestic price is mentioned in below paragraph.

A domestic price degree represents the cutting-edge charge for a particular top or carrier in an economy. Government companies or country wide economists have a tendency to study diverse charge degrees for you to verify growing or falling prices, known as inflation and deflation in monetary terms, respectively.The term 'Domestic charge ' because it applies to the region of agriculture may be described as ' The charge at which a commodity trades inside a country, in assessment to the arena charge. For the ones commodities now no longer benefitting from a few shape of charge aid, the domestic price is decided with the aid of using deliver and demand. For commodities that acquire charge aid, the home charge is commonly set with the aid of using the mortgage price or a few similar aid degree that serves as a charge ground withinside the market running at the side of any import quota that can be in effect'.

To learn about domestic price visit here.

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6 0
1 year ago
3. There a number of market entry strategies that businesses use in entering into markets outside their countries. a) Distinguis
sattari [20]

Answer:

a) Distinguish between the use of Franchising and Joint Venture as modes of entry into other countries by global businesses.

Franchising consists in the licensing of aspects of production and intellectual property to a another party: the franchise.

A Joint Venture is a business union between two or more parties, in which they split profit as well as costs and responsabilities.

b) What are the respective advantages and disadvantages of both strategies?

Franchising can be a quicker way to expand into foreign markets. The flexibility of the method, and the lower capital requirements are the reason why. This can be seen in the success that American fast-food brands have had using this method to expand in global markets.

A Joint-Venture can be more difficult to use for market expansion, however, it can be more profitable, because the profit will not be split among as many parties as in franchising, and more importantly, the firm maintains a higher control of the operation.

7 0
2 years ago
Hector would like to buy a new pair of soccer cleats. Hector prefers Adidas to Puma brand soccer cleats. But Hector chooses to b
oksano4ka [1.4K]

Answer: Option (A) is correct.

Explanation:

It was given that consumer prefers Adidas to puma brand soccer cleats but he buys puma brand soccer cleats. This is only because of the price theory and rational consumer choice. We know that a rational consumer will choose a product with a lower price. Both puma and Adidas brand soccer cleats are substitutes, thus, if the price of puma cleats is lower than the Adidas cleats then he should prefer puma brand soccer cleats.

3 0
3 years ago
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