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3 years ago

The crowding‑out effect describes a scenario in which federal deficit spending causes:

Business

1 answer:

marshall27 [118]3 years ago

7 0

Answer:

INCREASED INTEREST RATES WHICH REDUCES PRIVATE SPENDING.

Explanation:

Crowding out occurs when government increases its spending thus leading to a drop in private spending. It is a deliberate government policy to push out private spending so as to create more funds for loans. This then results in increased interest rates.

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Consider a firm with a contract to sell an asset for $138,000 five years from now. the asset costs $74,000 to produce today. giv

shepuryov [24]

The cost to produce today = 74000

At a discount of 12%, the future value of costs in 5 years = PV*(1+r)^n where PV = 74000, r= 12% = 0.12 and n = 5 years = 5

The value of costs in 5 years = 74000*(1+0.12)^5

The value of costs in 5 years = 74000*1.12^5

The value of costs in 5 years 130,413.28

Price in 5 years = 138,000

Profit = 138,000-130,413.28 = 7,586.72

The profit the firm will make on this asset (considering time value of money) = $7,586.72

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4 years ago

Mr. Buffett says the kinds of bad qualities some people show are qualities that no

Sergio039 [100]

Answer:

some people may or may not have bad manners, qualities can be in each individual and it can be on what you do lazy, or active, quiet, or it can be anything.

4 0

3 years ago

Các bn ơi giúp mình giải bài này với ạ. Mình cảm ơn.

umka2103 [35]

Answer:

What

Explanation:

WHat

3 0

3 years ago

g after examining the various personal loan rates available to you, you find that you can borrow funds from a finance company a

IceJOKER [234]

question text WITH missing information:

After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of 12 percent compounded monthly or from a bank at an APR of 13 percent compounded annually. Which alternative is more attractive?

If you borrow $100 from a finance company at an APR of 9% percent compounded for year, how much do you need to payoff the loan?

Answer:

The finance company option is better as we are taking the loan we want the lower rate possible.

We need $109 to payoff the loan of $100 at 9% annualy after a whole year.

Explanation:

We solve for the effective rate of 12% compounded monthly

$(1+\frac{0.12}{12} )^{12}$ = 1.12682503 = 0.126825 = 12.6825%

As this rate is lower than 13% this option is better

If we take 100 dollars after a year we have to pay:

$100 x (1 + r) = 100 x (1 + 0.09) = 100 x 1.09 = $109

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3 years ago

When a company controls all three phases of the film-industry production, distribution, and exhibition it is said to be:?

SSSSS [86.1K]

Large Scale Industry

8 0

4 years ago