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laiz [17]
3 years ago
15

The impact of crowding out

Business
1 answer:
Nat2105 [25]3 years ago
4 0

Answer:

The correct answer is D

Explanation:

The crowding out in economics is defined as the phenomenon which happen when increased government involvement in the sector of the market and the economy substantially affects the remainder of the market through demand or the supply side of the market.

Open economy is the economy where not only the domestic companies but also entities of another country in trade of products whereas the closed economy is the economy where there is no trading activity with the outside economies.

So, the crowding out impact would be larger in the open economy as compare to the closed economy.

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The purchasing power of people with _____ decreases a lot when inflation occurs.
11Alexandr11 [23.1K]
With fixed incomes, because they will find that the money that they have, when inflation occurs, won't be as worth as much before. The people with rising incomes will rise along with the inflation rates, so they will not feel the effect.
8 0
2 years ago
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A storage tank acquired at the beginning of the fiscal year at a cost of $90,000 has an estimated residual value of $12,000 and
MrRa [10]

Answer:

The annual depreciation under straight line method is $3,120

And under double-declining method:

Year 1 = $7,200

Year 2= $6,624

Explanation:

Please find the attached for the calculations

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3 years ago
Which of the following statement(s) is(are) true regarding the selection of a portfolio from those that lie on the capital alloc
Mice21 [21]

Answer:II) More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors. III) Investors choose the portfolio that maximizes their expected utility.

Explanation:The capital allocation line is a line created in a graph by investors in an economy to display or identify the potential risks involved in taking risky decisions. This line is one the determining factors to ensure that the investor has adequate knowledge about the risky nature of a capital investment.

Investors generally choose portfolios that guarantee maximum profits with reduced chances of loss. More risk averse investor will choose or opt for less risky portfolio.

4 0
2 years ago
________ entails even closer economic integration and cooperation than a common market. Group of answer choices A customs union
Goshia [24]

Answer:

An economic union

Explanation:

Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;

I. Customs union

II. Free trade area

III. Common market

IV. Political union

VI. Economic union

An economic union can be defined as a trade bloc which comprises of both customs union and a common market.

In a common market, there are free movement of the factors of production and no barrier to trade between member countries. Also, a common market establishes a common external trade policy for non-member countries.

However, an economic union entails even closer economic integration and cooperation among member countries than a common market because it combines customs union and a common market.

8 0
3 years ago
The following data is available for BOX Corporation at December 31, 2017: Common stock, par $10 (authorized 30,000 shares) $270,
Snezhnost [94]

Answer:

26,920

Explanation:

At $10 par value,

Number of authorized shares = 30,000 (given)

Number of issued shares = $270,000/$10 = 27,000 shares

Number of treasury shares = $1,200/$15 = 80 shares

Since Treasury shares do not form part of outstanding shares, they will be deducted from issued shares to obtain outstanding shares

Therefore, number of outstanding shares

= 27,000 - 80

= 26,920 shares

5 0
3 years ago
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