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lidiya [134]
3 years ago
10

Increased government debt can lead to higher interest rates​ and, as a​ result, crowding out of private investment spending. In

terms of borrowing​ (debt-spending), what will offset the effect of crowding out in the long run so that government debt poses less of a problem to the​ economy? A. ​Debt-spending on education. B. ​Debt-spending on research and development. C. ​Debt-spending on highways and ports. D. All of the above.
Business
1 answer:
prisoha [69]3 years ago
4 0

Answer:

The correct answer is option D.

Explanation:

Increase in government spending may not lead to an expansionary effect on the economy because of the crowding-out effect. This is because increased borrowing to fund spending leads to increase in interest rates. Increased interest rate discourages investors leading to a decline in private investment. This further has an adverse effect on aggregate demand.  

If the debt spending is spent on constructive work such as infrastructure, research, and development, education, etc it will create value in the future. Such spending will pose less problem in the long run. Spending on education will create human capital. Spending on infrastructure and research and development will further help in the production process.

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It costs garner company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. a fore
Tema [17]
It would be an increase of $6.000 as <span>the effect in net income ($15 selling price less $13 variable cost (the original $12 plus the $1 shipping cost)) or $2 per scale. </span>

8 0
3 years ago
While preparing your risk responses, you identify additional risks. What should you do? Add reserves to the project to accommoda
saw5 [17]

Answer: Document the risk and calculate the expected monetary value based on the probability and impact of the occurrences.

Explanation:

Risk response refers to the development of strategic options to reduce the threats and enhance opportunities to the objectives of the project.

It should be noted that when new risks are identified, such risks go through the process of risk management and one needs to be able to know the risk probability and risk impact and then get to curtail them.

8 0
2 years ago
The broker while creating a CMA does not usually consider the full range of data about market conditions and comparable sales th
tatiyna

Answer:

less reliable than the appraiser's.

Explanation:

in such a scenario the broker's opinion of value will be less reliable than the appraiser's. This is mainly because the broker does not have all the information that the appraiser has and is making his opinion without this information, which may lead to unforeseen consequences that would not otherwise occur if the broker had this information and was able to see a much bigger picture of the situation to incorporate into his opinion.

7 0
3 years ago
Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food made from all-natural ingredients and orga
natta225 [31]

Answer:

a.

Explanation:

Based on the information provided within the question it can be said that the statement that is true from the ones provided is that Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer. Wholesome Pet Foods is a high quality provider, meaning that their products tend to be more expensive, and even still they have been incredibly successful because their clients do not mind paying more for better quality product. Therefore an increase in price will not affect their loyal customers.

7 0
3 years ago
Allison and josh are partners in a business. allisons capital is $60,000, and joshs capital is $100,000. profits for the year ar
solmaris [256]
Hi there

The share of profit and loss based on their proportion of their capital
Total capital is
100000+60000=160000

Allison's share of profit is
80,000×(60,000÷160,000)=30,000

joshs share of profit is
80,000×(100,000÷160,000)=50,000

Good luck!
4 0
3 years ago
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