Answer:
Large budget deficits may reduce private investment, thereby stifling economic growth.
Explanation:
Crowding out is a term that describes the situation that occurs when the increase in involvement of the government in a particular sector of the market economy, has a direct effect on the remaining market, either on the demand or supply side of the market.
Therefore, crowding out effects which can be caused as a result of government financing large budget deficit, thereby, making them to be involved on a particular sector of the economy, will result to government needing more capital, hence encouraging savings, through increased in interest rate, or selling of bonds and treasury bills with attractive returns, which will leads to reduction in private investment spending, such that it affects negatively the increase in inital total investment.
Answer:
Noel hypothesis.
Explanation:
The theory that best explains segregation under these conditions is the <em>Noel hypothesis</em>. The Noel hypothesis claims that if there is contact of groups were there is ethnocentrism, competition and differential in power, some dominant-minority group will be created. This will lead to inequality. Ethnocentrism is the belief in the superiority of our race and culture. It can make us view the other race as inferior. The three components of this hypothesis were present during the Jim Crow era.
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