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Firlakuza [10]
3 years ago
5

The crowding-out effect refers to the possibility that:

Business
1 answer:
Natalka [10]3 years ago
6 0

Answer:

a. a deficit, financed by borrowing in the capital markets, will increase the interest rate and reduce investment in the private sector.

Explanation:

Crowding out effect is when government borrowing from the capital markets leads to an increase in interest rate. this makes it more expensive for private sector to borrow and this reduces investment by private sector

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Yi Company began operations on January 1, 2013. During 2013, the company engaged in the following cash transactions: 1) issued s
Andreyy89

Answer:

$11,000

Explanation:

Data provided

Provided consulting services = $50,000

Paid rent expenses = $12,000

Paid employee salaries = $27,000

The calculation of Yi's net cash flow from operating activities is given below:-

Yi's net cash flow from operating activities = Provided consulting services - Paid rent expenses - Paid employee salaries

= $50,000 - $12,000 - $27,000

= $11,000

Sp, for computing the Yi's net cash flow from operating activities we simply applied the above formula.

5 0
2 years ago
Read 2 more answers
When tariffs are imposed, the losers include domestic consumers and the domestic government. foreign consumers and domestic prod
Maslowich
<span>When tariffs are imposed, the losers include domestic consumers and foreign producers. A tariff is a tax that is imposed on different imports or exports. When these taxes are added the consumers wanting to purchase the item are going to pay more for it because of the added tax. This also hurts foreign producers because their products cost more for those in the country they are being imported into making some people want to stay away from purchasing the item. </span>
6 0
3 years ago
When a bond issued at face value is retired what is the journal entry
Vedmedyk [2.9K]
Credit the "bond payable" liability account for the total face value of the bonds and debit cash for the same amount.


8 0
3 years ago
A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and th
MAXImum [283]

Answer:

Logical scenarios

Explanation:

When there has to be a deal of merger, then their is evaluation of the value of entity to be merged. At times the merger takes place between different companies, where they both loose their respective identities, and form a new company joining both.

In that case, evaluation is done, by discounting the value of expected cash flows to be earned.

It is possible most of the times, but in logical scenarios, this is not feasible, as there are many factors changing with the practical implementation of merger.

As the tax rate of identity might change, the expected sales, might increase or decrease. The managerial payments might fluctuate than the expected change. Also, the expenses of running the company might also change.

6 0
2 years ago
You just won the Powerball and are offered two payment options: 1) Receiving $80 million per year for 25 years beginning at next
laila [671]

Answer: $80 million per year for 25 years

Explanation:

The option you should choose is one that will guarantee you the highest present value.

This means that you need to discount the annual payment of $80 million per year for 25 years to find the present value. As you did not include a rate, we shall assume a rate of 8% for reference purposes.

The annual payment is an annuity so the present value can be calculated by:

Present value of annuity = Annuity payment * Present value interest factor, rate, no. of years

= 80,000,000 * Present value interest factor, 8%, 25 years

= 80,000,000 * 10.6748

= $‭853,984,000‬

<em>The present value of the annual payment is more than the present value of the $850 million received today so the Annual payment should be taken. </em>

7 0
3 years ago
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