Answer:
If the economy is experiencing an expansion, this policy would not be as effective because many of the economy's workers would already be employed in other activities. In other words, the economy would be close to, or at, full employment.
Another reason is that large public investments during an economic expansion tend to raise the interest raise, and crowd out private investment, because a big part of the supply of loanable funds would be taken up by the government. This would actually be detrimental for the economy because private investment would be less.
Finally, there is always the possibility of overheating the economy and causing it to enter an inflationary phase.
Answer:
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Explanation:
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Answer:
Option B, lower interest rates and increase the equilibrium GDP.
Explanation:
Option B is correct because the increase in the money supply will reduce the interest rate and increase the real GDP or output on the country because the rise in the money supply will results in more money in the hand of people. Therefore, more investment and production will be done in the economy. Thus, a rise in the production of output in the economy will result in the rise of GDP
Answer:TRUE
Explanation: Competitive advantage is a term used in business or economics to refer to Opportunity gained by a business organization over others either through REDUCED PRICE,BETTER QUALITY OF PRODUCT OR SERVICE,THROUGH ECONOMIES OF SCALE, THROUGH INNOVATION etc an organization with a good Competitive advantage will generate more Revenue compared to others. Competitive advantage helps to make an organization better than others.
