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bonufazy [111]
3 years ago
14

Crowding out occurs when deficit spending increases interest rates. decreases interest rates. increases consumer spending. decre

ases consumer spending. increases investment spending.
Business
1 answer:
Helen [10]3 years ago
4 0

Answer: increases interest rates

Explanation:

Crowding out occurs when an increase in the involvement of the government in a particular sector of the market economy affects the other sectors of the market.

An example is when an expensionary policy such as government spending leads to the rise in interest rates and which will also reduce the investment spending as investors won't like.to invest in such economy with high interest rates.

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The Oxford Fixed Income Fund invests heavily in bonds. If the fund manager thinks that interest rates are going to fall, what ch
zepelin [54]

Answer:

A. Increase investment in long-term bonds

Explanation:

According to the Expectations hypothesis which is based on the principle that long-term rate is determined purely by current and future expected short-term rates, such that he expected final value from the accumulation of progression of short-term bonds approximates the final value from investing in long-term bonds.

Hence, given that when the interest rates fall, the prices of the bonds on the market already will rise, then it can be concluded that If the fund manager thinks that interest rates are going to fall, she should Increase investment in long-term bonds

5 0
3 years ago
A _______ is a long period of rising stock prices.
Alecsey [184]
A bull market is a long period of rising stock prices. Bull market is a part of financial market that is being invested for a long period of time and is expected to gain a higher rise in the price.
3 0
3 years ago
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When Walmart communicates to consumers that, for any given group of often-purchased items, its prices will tend to be lower than
miskamm [114]

Answer:

EDLP is the correct answer.

Explanation:

6 0
3 years ago
What happens to the individual demand curve as the price of an item increases?
grin007 [14]

Answer:

b. An individual demand for an item will decrease causing a downward slope.

Explanation:

The law of demand states that when other factors are held constant, the price and demand have inverse relationship, which means that as one increases, the other one decreases. So in the case of the of your problem, as the price of an item increases, the demand will decrease (the opposite would be true as well).

So when you put it in a graph, the demand curve would be sloping downwards.

3 0
3 years ago
Lin corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. the company's month
vlada-n [284]
<span>Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000 1. Using the equation method, solve for the unit sales that are required to earn a target profit of $10,000 Sales = Variable expenses + Fixed expenses + Profit $120Q = $80Q + $50,000 + $10000 $40Q = $60000 Q = $60,000 /$40 Q =1500 Units 2. Using the format method, solve for the unit sales that are required to earn a target profit of $15,000 Sales = 50000+15000/120-80 = 1625 units. Mauro Products distributes a single product, a woven basket whose selling prices are $15 and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,200. 1. Solve for the company’s breakeven point in unit sales using the equation method. Sales = Variable expenses + Fixed expenses + Profit $15Q = $12Q + $4,200 + $0 $3Q = $4200 Q = $4200 /$3 Q =1400 Units 2. Solve for the companies breakeven point in sales dollars using the equation method and the CM ratio. X = 0.8X + 4,200 + $0 0.2X = $4200 X = $4200 / 0.2 X = $21,000 CM ratio method BEP = fixed cost /Sales-Variable cost /Sales = 4200/15-12/15 = $21000 3. Solve for the company’s breakeven point in unit sales using the format method 4200/15-12 = 1400 units. 4. Solve for the company’s breakeven point in sales dollars using the format method and the cm ration. BEP = fixed cost /1-Variable cost / Selling price = 4200/1-12/15 = $21000 CM ratio method BEP = fixed cost /Sales-Variable cost /Sales = 4200/15-12/15 = $21000</span>
7 0
3 years ago
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