The crowding-out effect is such that additional government borrowing to finance a larger deficit will increase the demand for loanable funds, causing real interest rates to rise.
<h3>What is the crowding-out effect?</h3>
The crowing-out effect refers to when the government borrows so much money that they make it hard for businesses to borrow and invest in new projects.
This happens because the government borrowing will decrease the amount of funds that can be borrowed in the market which will lead to higher interest rates for the remaining funds.
Find out more on crowding out at brainly.com/question/995089.
#SPJ1
Answer:
The purchases of raw material for February are budgeted to be 20275 pounds.
Explanation:
The opening inventory of raw material in February should be equal to 25% of the production requirement for the month of February. Thus, the opening balance of raw material is,
Opening balance- Raw material = 0.25 * 20600 = 5150 pounds
Similarly, the closing inventory for raw material for the month of February should be equal to the 25% of production requirement for the month of March. Thus, the closing inventory of raw material in the month of February is,
Closing balance = 0.25 * 19300 = 4825 pounds
Purchases of raw material should be enough to produce enough units to meet February's production requirement after using the opening inventory of raw material along with having enough desired closing inventory of raw material. So, the purchases of raw material are,
Purchases = Closing inventory + Production - Opening Inventory
Purchases = 4825 + 20600 - 5150
Purchases = 20275 pounds
I’m sorry but like what is that supposed to be?
Answer:
High supply, Low demand
Explanation:
If there is a lot of one product that no one wants, they lower the prices to get rid of it
