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Kitty [74]
3 years ago
5

Crowding out refers to the situation in which Group of answer choices borrowing by the federal government raises interest rates

and causes firms to invest less. foreigners sell their bonds and purchase U.S. goods and services. borrowing by the federal government causes state and local governments to lower their taxes. increased federal taxes to balance the budget causes interest rates to increase and consumer credit to decrease.
Business
2 answers:
goldenfox [79]3 years ago
6 0

Answer:

Crowding out refers to the situation in which borrowing by the federal government raises interest rates and causes firms to invest less - option A.

Explanation:

Generally, a condition whereby a persistent government borrowing decreases the likelihood of the government repaying the borrowed loan or credit and consequently raises the interest rate is referred to as Crowding out. This situation would cause a decline in private investment level by the companies or firms.

Therefore, borrowing by the federal government raises interest rates, causing firms to invest less is the correct answer.

vlabodo [156]3 years ago
3 0

Answer:

Borrowing by the federal government raises interest rates and causes firms to invest less

Explanation:

Crowding out is an economic concept whereby increased federal Government spending and deficit financing i.e borrowing by the federal government sucks up the financial resources therefore leading to hike in interest rates to pay up the money borrowed by the government.

This economic concept leads to decrease in firms or individual involvement in financial and business activities due to the hike in interest rates and the resultant inflation that comes with it.

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Swifty Corporation reported net income of $203000 for the year. During the year, accounts receivable increased by $15000, accoun
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2 years ago
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results whi
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Answer:

Moonbeam Company

a) Incremental analysis for the special order:

Sales revenue ($7.87 * 20,800) =   $163,696

Variable costs ($6.62 * 20,800) =    (137,696)

Contribution margin =                        26,000

Shipping costs                                     (2,900)

Net income from special order =     $23,100

b) Moonbeam should accept the special order.  It generates some net income for covering the company's fixed cost and does not exceed the company's plant capacity.  It only adds about 4% to the operating plant capacity.

Explanation:

a) Data and Calculations:

                                        Total               Variable        Fixed

Sales (375,200 units)  $4,378,000  

Cost of goods sold        2,588,880      1,812,216       776,664

Gross profit                     1,789,120

Operating expenses        839,510        671,608        167,902

Net income                    $949,610

Total costs                                       $2,483,824    $944,566

Selling price = $11.67 ($4,378,000/375,200)

Variable costs per unit = $6.62 ($2,483,824/375,200)

Total plant capacity = 500,267 units (375,200/75%)

Increase in plant capacity = 396,000 (375,200 + 20,800)

6 0
3 years ago
Other things the same, when the price level rises, interest rates select one:
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I think its number c, i hope it is
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5 0
2 years ago
Darlene Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Darlene Company issued checks t
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Answer:

b. $18,000

Explanation:

The computation of outstanding checks is shown below:-

Outstanding checks as of the end of July = Start with outstanding checks as of June + Amount of checks issued in July - Amount of checks that cleared in July

= $5,400 + $38,900 - $26,300

= $44,300 - $26,300

= $18,000

Note, The $300 check was issued by a customer, not Darlene.

So, for computing the outstanding checks as of the end of July we simply applied the above formula.

4 0
3 years ago
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