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saul85 [17]
3 years ago
14

Crowding out occurs when...

Business
1 answer:
Gemiola [76]3 years ago
8 0

Answer: Option A

Explanation: Crowding effect refers to the situation when due to over involvement of government in a sector of economy heavily affects the other sectors of the economy.

In such a case, government spends on a sector more than it needs. This leads to lack of funding from government on other sectors and thus reduced investment and higher interest rates.

From the above we can conclude that the correct option is A.

You might be interested in
A bank has on-balance-sheet assets with a book value of $940 million and a market value of $985 million and on-balance-sheet lia
horsena [70]

Answer:

$45 million

Explanation:

Data provided in the question:

Book value of assets = $940 million

Market value of assets = $985 million

Book value of liabilities = $900 million

Market value of liabilities = $930 million

off-balance-sheet assets = $150 million

Off-balance-sheet liabilities = $160 million

Now,

Stockholders Net worth

= Market value of assets + Off balance sheet assets - Market value of liabilities - Off balance sheet liabilities

= $985 million + $150 million - $930 million - $160 million

= $45 million

8 0
4 years ago
You are depositing $1,234 in a saving account now and two years from now you deposit another $2,345 into the same savings accoun
Softa [21]

Answer:

4,494.68

Explanation:

Formula

Fc = Ic (1+i) ^ n

Where;

Fc= Final Capital

Ic= Inicial Capital

i= interest rate

n= period

In this particular case:

Fc = 1234 (1+0.034556) ^ 8 + 2345 (1+0.03456) ^ 6

Fc = 4,494.68

4 0
3 years ago
Nominal gross domestic product (GDP) increased from $15.62 trillion to $16.09 trillion, and the price level increased from 120.0
Vesna [10]

Answer:

2.0 percent

Explanation:

Inflation can be defined as the persistent rise in general price levels.

Inflation can be calculated by determining the change in price levels.

(122.4 / 120 ) - 1 = 0.02 = 2%

I hope my answer helps you

5 0
4 years ago
Allison has a horse stall cleaning business that has been growing rapidly since she started it three years ago. She estimates th
Reil [10]

Answer: 13.2%

Explanation:

Given data:

No of stores in the market = 5000

No. of store owners = 2000.

Allison charges = $8/month

Sam charges = $8/month.

Solution:

The market penetration rate would be calculated based on potential customers.

Using our general formula,

Market penetration=Numbers of customers who purchased Allison derived sales and Sam derived sales /Total potential population

Where,

Total potential population=1,500

•Allison derived sales = 129 customers

•Sam derived sales = 69 customers

•Numbers of customers who purchased Allison derived sales and Sam derived sales=129 customers+ 69 customers

•Numbers of customers who purchased Allison derived sales and Sam derived sales =198 customers

Let’s input this into our general formula.

Market penetration

= 169 customers/1,500

= 0.132*100

= 13.2%

The market penetration rate based on potential customers is 13.2%

8 0
3 years ago
Encouraging Ethical Conduct: Did Johnson openly acknowledge that his decision was based in ethics and morality? Did his apology
Law Incorporation [45]

Answer:

No, Johnson didn't straightforwardly recognize that his choice was situated in morals and profound quality. Johnson said that the video was difficult to watch and the activities in the video didn't speak to Starbucks' Mission and Values (Tangdall, 2018). The topic of morals and profound quality is tended to in Starbucks' Mission and Values, and moral measures; nonetheless, Johnson tended to the issue by implication.  

Truly, his expression of remorse advanced the attention to the issue. After the episode, Johnson surrendered that the activities in the didn't speak to Starbucks' Mission and Values. From that point forward, an including situation was made where everyone was required to work inside Starbucks without essentially buying anything. Johnson, in his conciliatory sentiment, concentrated on the activity and caution (Tangdall, 2018).  

The statement of regret made a positive distinction. After the conciliatory sentiment, Johnson met the two men that got captured, suggesting that the mindfulness was completely made, and the administration of the association truly implied change (Tangdall, 2018).  

For the clients and workers, it had any kind of effect. For the representatives, they had a chance of being prepared on "oblivious predisposition preparing" This made them progressively mindful of what they ought to do on the off chance that they are confronted with problematic. For the clients, a moving and sustaining atmosphere was made where an individual can take tea and pause, simultaneously.

5 0
4 years ago
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