Answer:
a. An increase in government spending increases interest rates, causing investment to fall.
Explanation:
Crowding out occurs when increased government spending backfires and has a negative impact in the private sector due to the increase in interest rates, which are pivotal in the decision-making process of private investments. A high intensity crowding out may even lead to a negative overall impact in the economy. Therefore, the answer is alternative a.
Answer:
C. As the price level decreasesdecreases, the real value of cash balances increasesincreases, and total expenditures riserise.
Explanation:
The aggregate demand curve is a curve that shows all the output demanded at different price levels in an economy.
The aggregate demand curve in downward sloping. This is according to the law of demand which says, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
Therefore, when prices fall, the real value of cash balances increases, total expenditures rises and quantity demanded rises.
When prices fall, export increases and net export rises.
I hope my answer helps you
Answer:
Following is the order from first to last
Explanation:
Progression of a properly function loanable funds is a step by step procedure if one step fails the functions of loanable funds cannot proceed further.
The first step is Borrowing requires saving
The second step is investment requires borrowing
The last step is output (GDP) requires investment
The first is borrowing followed by investment and the output GDP.
Answer:
None of the options was correct
<em>It will take her 15.94 years to make withdrawals and yet have up to $50,000.00 to give me.</em>
Answer:
a. $25
Explanation:
According to the given situation, the computation of deadweight loss of the tax is shown below:-
Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50)
Or, Deadweight Loss = 1 ÷ 2 × ($50)
Or, Deadweight Loss = $25
Therefore the correct option is a. $25
We simply considered the above values so that the deadweight loss of the ta could come