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3 years ago

In the context of budget deficits, what is crowding out?

Business

1 answer:

Dima020 [189]3 years ago

6 0

Answer:

(A) when government borrowing leads to higher interest rates and corresponding decreases in private investment.

Explanation:

Crowding out effect is when the government's involvement is a sector of an economy negatively impacts other players in the economy.

When there's a government deficit, the government borrows and because of the large amount that would be borrowed, interest rates would rise and this would discourage private investment.

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Petroski Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of acti

algol13

Answer:

$577 Unfavorable

Explanation:

The calculation of spending variance for dye costs is shown below:-

Spending variance for dye cost = (Standard rate - Actual variable) × Actual units

= ($0.67 - $13,910 ÷ 19,900) × 19,900

= (0.67 - 0.69899) × 19,900

= $577 Unfavorable

Therefore for computing the spending variance for dye costs we simply applied the above formula.

6 0

3 years ago

Q4) An investment offers a total return of 12.8 percent over the coming year. Janice thinks the total real return on this invest

Blizzard [7]

Answer:

inflation rate= 5.8%

Explanation:

Giving the following information:

An investment offers a total return of 12.8 percent over the coming year. Janice thinks the total real return on this investment will be only 7 percent.

<u>The real return on investment includes the effect on inflation. </u>

Real rate of return= total return - inflation rate

0.07=0.128 - inflation rate

inflation rate= 0.058= 5.8%

7 0

3 years ago

Each of the following situations is independent. Work out your own solution to each situation, and then check it against the sol

saw5 [17]

Morgan will get $1600 with the process of simple interest.

<h3>what is simple interest?</h3>

Simple interest is calculated based on a loan's principal or the initial deposit into a savings account. Simple interest doesn't compound, therefore a creditor will only charge interest on the principal sum, and a borrower will never be required to pay further interest on the interest that has already accrued.

Rate of interest = 12%

principal = $1000

Time = 5 years

Simple interest

$=\frac{1000 \times 5 \times 12}{100}\\=600$

Now amount = 1000+600 = 1600.

Therefore, Morgan will get $1600.

To learn more about simple interest from the given link

brainly.com/question/25793394

#SPJ4

8 0

1 year ago

Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its total invested capital is $18,000,000

rusak2 [61]

Answer:

1,875,000 Economic Value Added

Explanation:

Net Operating Profit After Taxes - Invested Capital x Weighted Average Cost of Capital = Economic Value added

This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.

3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes

18,000,000 x 5% = (900,000) Required Return

1,875,000 Economic Value Added

4 0

3 years ago

The Wood Division of Bramble Corp. manufactures rubber moldings and sells them externally for $45. Its variable cost is $25 per

Lyrx [107]

Answer:

c. $45

Explanation:

Transfer price is the price charged for a product which is transferred to other department/ division / subsidiary of same company / group. The minimum selling price in the absence of any excess capacity is the price available in the market, because the company has demand for the product and it does not lost the sale if transfer not takes place. The product can be sold in the market. So the Transfer price should be $45.

4 0

3 years ago

Read 2 more answers