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Anit [1.1K]
4 years ago
6

Holding all else constant while government is borrowing to cover budget deficits, the crowding out concept suggests interest rat

es ________ borrowing and spending by business and households.
Business
1 answer:
Tema [17]4 years ago
4 0

If the government has a budget deficit, crowding out might occur. Crowding out leads to all of the following; a higher real interest rate, a smaller capital stock in the future and a decreased quantity of investment.  Borrowing from the rest of the world  Government budget surpluses, private saving.

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Tobit Financing offers short-term financing plans to other companies. It buys the accounts of other companies at a discount and
NARA [144]

Answer:

C) Factoring

Explanation:

In factoring, the Companies shall sell the accounts receivables to Tobit Financing at a discounted rate when they are apprehensive about receiving the same from their debtors in time. Once received by Tobit Financing, it shall recover the dues from those accounts at the full rate. The difference shall be the earning of Tobit Financing. This may also be true when such Companies are in urgent need of cash and this option seems to be the most viable.

3 0
4 years ago
To rent a car for one week, a car rental company charges a $200 base price as well as $0.45 per mile. Jennifer will rent a vehic
Orlov [11]

Answer:

166mile

Explanation:

Given that:

Base price is $200

Mileage price = $0.45 per mile

Jennifer will rent a vehicle at this company, but she has a $275 budget.

Hence the possible number of miles that Jennifer can drive without exceeding her budget :

She will have to make a deposit of $200 which is the base price

($275 - $200) = $75

Now that she is left with $75

Recall,

1 mile = $0.45

X mile = $75

$75 × 1 mile = X mile × $0.45

X mile = 75/0.45

X mile = 166.666

Hence the maximum miles she will have to cover without incurring extra charges will be 166mile

8 0
3 years ago
You are trying to decide which of two automobiles to buy. The first is American-made, costs $3.0500 x 104, and travels 28.0 mile
siniylev [52]

Answer:

Both cars(American and European) must travel 8,060 kilo metres each during their lifetime for the total cost(purchase cost + fuel equivalent) to be equivalent

Explanation:

With regards to the above, the cost equation for both cars will be equated together.

Furthermore, we will convert gallons into litres while also converting miles into kilometers.

Since 1 gallon has 3.785 litres; 1 mile also has 1.609 kilo metre, hence milage of the first car in kilo metre per litre would be ;

Milage American made = [ 28 miles × 1.609 ] / 3.785

= 11.90 kilo meter per litres.

Cost of Gas per litre = $3 per gallon / 3.785

= 0.79 per litre

Gas cost per kilo metre(American made) = 0.79 per litre / 11.90

= 0.066 per km

Gas cost per kilo metre(European made) = 0.79 per litre / 19.0

= 0.042 per km

We can sum up the equation of first car which is American made( Purchase price + Fuel cost)

We can make a be the number of kilo metres where total cost for both cars would be equal.

Total cost = 317.2 + 0.066a

Also, the total cost equation - purchase price + fuel cost of European car is represented as;

Total cost = 510.64 + 0.042a

317.2 + 0.066a = 510.64 + 0.042a

Collect like terms

0.066a - 0.042a = 510.64 - 317.2

0.024a = 193.44

a = 8,060 kilo metres

Therefore, both cars(American and European) must travel each 8,060 kilo metres in their life time for the total costs( purchase cost + fuel cost) to be equivalent.

5 0
4 years ago
Warm up: If you work 40 hours a week (full time), should you be able to live without food
notsponge [240]
The maximum gross monthly income is 130 percent of the federal poverty level, and the maximum net monthly income is 100 percent of the federal poverty level. For instance, if your household only consists of one person, then the gross monthly income to be eligible for SNAP is $1,287 (net $990).
4 0
3 years ago
the spot price of the euro is currently $1.30. The 1-year futures price is $1.35. Is the interest rate higher in the United Stat
yarga [219]

Answer: no. Interest rate in euro zone is lower than interest rate in the united state

Explanation:

when interest rate rises, foreign investors will be attracted which will increase the demand for domestic currency. an increase is demand for domestic currency will increase the exchange rate level which is an appreciation of the home currency.

spot rate is $1.30 and future price is $1.35, the exchange rate increase which tells us that Home currency depreciated. A decrease in Interest rate increases Exchange rate level. Since exchange rate level is expected to increase we can assume that the interest rate of Euro zone is less than the interest rate of united states

8 0
4 years ago
Read 2 more answers
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