The appropriate response is Crowding out effect. It is a financial term alluding to government spending driving down private division spending and can have a few more particular implications. Swarming out can allude to when government getting assimilates all the accessible loading limit in the economy. This causes loan costs to rise.
Answer:
Compound interest will lead to a larger sum of money than a comparable simple interest payment.
Explanation:
The true statement is that compound interest will lead to a larger sum of money than a comparable simple interest payment because the interest are compounded for a certain number of times such as daily, weekly, quarterly or annually while simple interest isn't compounded at all.
To find the future value, we use the compound interest formula;
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
Mathematically, simple interest is calculated using this formula;
Where;
S.I is simple interest.
P is the principal.
R is the interest rate.
T is the time.
Complete Question:
If reserve demand is volatile, in order for the central bank to keep interest rates from being volatile, it must:
a. Target the quantity of reserves.
b. Set targets for both interest rates and the quantity of reserves.
c. Not target the interest rates.
d. Let the quantity of reserves fluctuate.
Answer:
d. Let the quantity of reserves fluctuate.
Explanation:
Volatility in reserve demand is offset by the central bank allowing the quantity of reserves to fluctuate in line with demand. By manipulating and adjusting the reserve levels, a central bank can prevent volatile fluctuations in currency. It does this by affecting the exchange rate and increasing the demand for and value of the country's own currency. By varying the reserve requirements, the liquidity position of the banks and hence their ability to lend are affected as an anti-inflationary measure with reduction of potential credit expansion.
Answer: Exception Question
Explanation:
Exception questions are used in Solution focused therapies. They are used to discover instances when a client's problem could have manifested itself but did not or was less severe.
It is a shift from focusing on the problem to finding ways to achieve a solution. An example is: Tell me about a time when the situation made you angry but you overcame our anger.
This method also makes use of miracle questions, encouraging clients to imagine a life without their problem and a scaling question which asks clients to rate their problem, or the likelihood they would react to a certain situation in a particular way. This can be on a scale from 0 to 10.
If the price of the item is $15.00 per unit and the employees costs $125 each, Three employees should the firm hire to maximize their profit.
How do firms maximize profit?
All firms maximize profits when their marginal cost is equal to the marginal product. This dollar amount should also be the selling price that maximizes profits.
What is meant by profit maximization?
Profit maximization is a process business firms undergo to ensure the best output and price levels are achieved in order to maximize its returns. Influential factors such as sale price, production cost and output levels are adjusted by the firm as a way of realizing its profit goals.
What are the goals of profit maximization?
Profit maximization is the process by which a business arranges its prices and cost structure to achieve the highest possible profit. The central goal of the organization is to increase its profits
Learn more about profit maximization:
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