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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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<em>Your question is incomplete. please read below to find the full content.</em>

If the quantity supplied by producers is relatively insensitive to price changes, supply is ______. Multiple choice question.

price inelastic.

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7 0
2 years ago
Nielson Motors sold 10 million shares of stock in an SEO. The market price of Nielson's stock at the time was $37.50. Of the 10
Yuliya22 [10]

Answer:

a. $144 million

Explanation:

The computation of the amount of money raised is shown below:

But before that we have to find out the amount raised and underwriting fees which is given below:

Amount raised by company is

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And,

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So, amount raised by the company is

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