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2 years ago

A decrease in private sector borrowing and spending caused by increased government borrowing is:.

Business

1 answer:

Reil [10]2 years ago

5 0

A decrease in private sector borrowing and spending caused by increased government borrowing is crowding out.

<h3>What is crowding out?</h3>

Crowding out is a phenomenon in economics that occurs when increased government participation in a sector of the market economy has a significant impact on the rest of the market, either on the supply or demand side of the market.
One type that is commonly discussed is when expansionary fiscal policy reduces private-sector investment spending.
Government spending is "crowding out" investment because it requires more loanable money, raising interest rates, and limiting investment spending.
This fundamental study has been expanded to include numerous channels, which may result in little or no change in total output.

Therefore, a decrease in private sector borrowing and spending caused by increased government borrowing is crowding out.

Know more about crowding out here:

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Russell Inc. had sales of $2,200,000 for the first quarter of 2017. In making the sales, the company incurred the following cost

tresset_1 [31]

Answer:

Sales 2,200,000

Less Variable Costs:

Cost of goods sold (920,000)

Selling expenses (70,000)

Administrative expenses (86,000)

Contribution 1,124,000

Less Fixed Costs

Cost of goods sold (440,000)

Selling expenses (45,000)

Administrative expenses (98,000)

Net Income 541,000

Explanation:

A CVP income statement is also known as a Variable Costing Income Statement and is written up as follows :

Sales 2,200,000

Less Variable Costs:

Cost of goods sold (920,000)

Selling expenses (70,000)

Administrative expenses (86,000)

Contribution 1,124,000

Less Fixed Costs

Cost of goods sold (440,000)

Selling expenses (45,000)

Administrative expenses (98,000)

Net Income 541,000

8 0

3 years ago

The Financial Services Modernization Act allowed bank holding companies to open insurance underwriting affiliates and allowed in

tangare [24]

Answer:

The correct answer to the following question will be "True".

Explanation:

Towards the latter half of the 20th century, various banking and financial–investment banking, corporate finance, and insurance became more and more intertwined.
It required banks to hold organizations to establish associated insurance firms and authorized insurers to operate banking.

Therefore, the given statement is True.

6 0

4 years ago

A company purchased a weaving machine for $264,970. The machine has a useful life of 8 years and a residual value of $14,500. It

Nutka1998 [239]

Answer:

$37,455

Explanation:

The unit of production method of depreciation charges higher amounts of depreciation seasons of higher output. The depreciation amount is propositional to the level of production.

The formula applicable in the calculation of the unit of depreciation is as follows.

Depreciation = depreciable value / estimated production value x units produced

For this machine: depreciable value = Asset cost - residual value

Depreciable value =$264,970- $14500 = $250, 470

Estimated units to be produced = 759,000 bolts

Units produced in the second year =113,500

Depreciation for the second year

= 250, 470/ 759,000 x 113,500

=0.33 x 113, 500

= $37,455

6 0

4 years ago

Assume metro corporation had a net income of $ 2 comma 400 for the year ending december 2018. its beginning and ending total ass

dedylja [7]

We have:

Net Income = 2,400

Beginning total assets = 30,500

Ending total assets = 20,000

Return on asset is net income divided by average total assets.

Average total assets = ( beginning total assets + ending total assets)/2

= (30500 +20000)/2

= 25,250

Return on asset = net income/ average total assets

= 2400 /25250

=9.50%

Therefore, Return on asset would be 9.50%.

7 0

3 years ago

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nalin [4]

I think to grow muscle........

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3 years ago