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Arisa [49]
3 years ago
15

Which of the following is an example of crowding out? a. An increase in government spending increases interest rates, causing in

vestment to fall. b. A decrease in private savings increases interest rates, causing investment to fall. c. A decrease in the money supply increases interest rates, causing investment to fall. d. An increase in taxes increases interest rates, causing investment to fall.
Business
1 answer:
kicyunya [14]3 years ago
3 0

Answer:

a. An increase in government spending increases interest rates, causing investment to fall.

Explanation:

Crowding out occurs when increased government spending backfires and has a negative impact in the private sector due to the increase in interest rates, which are pivotal in the decision-making process of private investments. A high intensity crowding out may even lead to a negative overall impact in the economy. Therefore, the answer is alternative a.

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Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.50. It expects to grow at a constant rate of 2
mr Goodwill [35]

Answer:

The current price of Hubbard's common stock is <u>$25.50</u>.

Explanation:

This can be calculated using the Gordon growth model (GGM) formula that assumes growth is dividend will be constant as follows:

P = D1/(r - g) ............................ (1)

Where,

P = Current stock price = ?

D1 = Next dividend =  D0 * (1 + g) = $1.50 * (1 + 2%) = $1.53

r = required return = 8%, or 0.08

g = growth rate = 2%, or 0.02

Substituting the values into equation (1), we have:

P = $1.53 / (0.08 - 0.02) = $25.50

Therefore, the current price of Hubbard's common stock is <u>$25.50</u>.

7 0
4 years ago
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Paya
dangina [55]

Answer:

Dr Bonds payable 1,600,000

Dr Loss on redemption of bonds 36,800

    Cr Cash 1,632,000

    Cr Discount on bonds payable 4,800

Explanation:

Loss/gain on redemption  of bonds = carrying value - cash paid = ($1,600,000 - $4,800) - $1,632,000 = $1,595,200 - $1,632,000 = -$36,800 loss

7 0
3 years ago
Explain south africa's reaction to the recommendations given by the who
LenaWriter [7]

Answer:

WHO guidelines

The development of global guidelines ensuring the appropriate use of evidence represents one of the core functions of WHO.

A WHO guideline is defined broadly as any information product developed by WHO that contains recommendations for clinical practice or public health policy. Recommendations are statements designed to help end-users make informed decisions on whether, when and how to undertake specific actions such as clinical interventions, diagnostic tests or public health measures, with the aim of achieving the best possible individual or collective health outcomes.

The Guidelines Review Committee ensure that WHO guidelines are of a high methodological quality and are developed through a transparent, evidence-based decision-making process. Guidelines are subject to a rigorous quality assurance process that helps to ensure that each and every published guideline is trustworthy, impactful and meets the highest international standards.

Explanation:

WHO guidelines

The development of global guidelines ensuring the appropriate use of evidence represents one of the core functions of WHO.

A WHO guideline is defined broadly as any information product developed by WHO that contains recommendations for clinical practice or public health policy. Recommendations are statements designed to help end-users make informed decisions on whether, when and how to undertake specific actions such as clinical interventions, diagnostic tests or public health measures, with the aim of achieving the best possible individual or collective health outcomes.

The Guidelines Review Committee ensure that WHO guidelines are of a high methodological quality and are developed through a transparent, evidence-based decision-making process. Guidelines are subject to a rigorous quality assurance process that helps to ensure that each and every published guideline is trustworthy, impactful and meets the highest international standards.

3 0
2 years ago
A(n) _____ refers to a situation where a publicly traded company is purchased and then taken off the stock market.
dalvyx [7]
Leveraged buyout/////////////////
4 0
3 years ago
Suppose that the price of a rental car (Prc) is $50 while the price of a flight (Pfl) is $85. Also, suppose that the marginal ut
Masteriza [31]

Answer:

Consumers should choose to take the flight.

Explanation:

The price of a rental car = $50

Marginal utility from the car = 20 utils

Now find the per dollar utility from car = $50 / 20 = 2.5

The price of a flight = $85

Marginal utility from the flight = 30 utils

Now find the per dollar utility from flight = $85 / 30 = 2.83

Since the per dollar, MU is greater in the case of flight so consumers should choose to take the flight.

6 0
3 years ago
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