A lot of issues affect an economy. when government borrowing to finance the economy, an increase in the deficit will lead to high increase in interest .
- Higher interest rates will tend to limit or “crowd out” a lot of private investment, and this in turn will limit growth.
<h3>How will the financing of government spending influence national savings?</h3>
Due to an increase in government expenditures, the government finances will have to try and get additional spending via borrowing.
This then will bring about reduction in public savings. When private savings are unaffected, the effect of a reduction in public savings will tend to lower the total levels of national savings.
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Answer:
the assets have a correlation coefficient equal to negative one.
Explanation:
Portfolio variance can be defined as the measurement of risk or dispersion of returns of a set of securities that makes up a portfolio fluctuate over a period of time.
Simply stated, portfolio variance is typically the total returns of the portfolio over a specific period of time.
In order to calculate the portfolio variance, the standard deviations of each security in the portfolio with their respective correlations security pair in the portfolio would be used. Portfolio variance is the square of standard deviation.
A two-asset portfolio with a standard deviation of zero can be formed when the assets have a correlation coefficient equal to negative one (-1) because this defines the efficiency frontier. In Economical portfolio theory, the efficient frontier is a group of optimal portfolios that offers an investor the highest expected return for a specific risk level or offers the lowest risk for a defined level of expected return.
Answer:
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Answer:
Intercultural communication is important as it helps in cross culture communication process. It helps in the process where different people belonging to different cultures communicate together on one platform. The communication can be verbal or non verbal among the people who belong to different cultural backgrounds.
Explanation:
High context communication is one in which communication is in such a way that relies heavily on non verbal language and emphasis the cultural values. Low context cultures communication is when people communicate in direct and precise manner. They rely heavily on verbal communication.
