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Virty [35]
3 years ago
5

a. How can increases in government spending crowd out investment spending? An increase in government spending increases the use

of automatic stabilizers, which reduces private investment spending. causes firms to worry about inflation, which reduces private investment spending. increases the real interest rate, which reduces private investment spending. lowers the real interest rate, which reduces private investment spending. b. Is crowding out a major concern when actual output is below potential output? Why? Crowding out is a major concern, because the goal is always to increase investment spending. is not a major concern, because the Fed will likely lower the real interest rate when actual output is far below potential. is a major concern, because the crowding out effect will outweigh the increase in government spending. is not a major concern, because the Fed will likely raise the real interest rate when actual output is above potential output.
Business
1 answer:
Delvig [45]3 years ago
4 0

Answer:

         a.  increases the real interest rate, which reduces private investment spending.

        b.  is not a major concern, because the Fed will likely lower the real interest rate when actual output is far below potential.

Explanation:

Increase in government spending means that the government would probably have to borrow money from the credit market. Because the government is so large, it will borrow in large amounts which would force rates to rise. At these higher rates, the private sector might find it too expensive to borrow money and so would be crowed out such that they reduce their investment spending.

When the economy is facing an output that is lower than potential, the Fed will engage in monetary policy aimed at reducing interest rates to improve investment spending. This therefore negates the effect of crowing out which means that it would no longer be a major concern.

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Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total an
spayn [35]

Answer:

$21,000,000

Explanation:

Ratio is used in allocating the research and development cost

This is the expression of relationship between two or more data showing the number of times one data contains or is contained in another data

Total research and development cost = $60,000,000

Revenue

Kentucky = $56,000,000

Arizona -= $ 100,000,000

Illinois =    $84,000,000

Total =     $240,000,000

Illinois allocation of research and development cost=

84,000,000/240,000,000*60,000,000 =$21,000,000

3 0
3 years ago
Chief financial officer Barry submits travel and expense reports that are completely genuine and encourages employees in his div
Scorpion4ik [409]

Answer: A) Leading by example

Explanation:

Leading by example means to act in a way that shows others how to act. Barry has led by example by submitting travel and expense reports that are genuine. This will inspire his employees or subodinates to do same.

Leadership is not about talking the talk, this type of leaders also walks the walk. Leaders expect others to do the right thing by leading from example.

8 0
3 years ago
Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity 7.6 liters per unit
frosja888 [35]

Answer:

Direct material quantity variance= $1,260 unfavorable

Explanation:

Giving the following information:

Standard quantity of 7.6 liters per unit

Standard price $ 2.10 per liter

The company budgeted for production of 3,400 units.

The actual production was 3,500 units.

The company used 27,200 liters of direct material to produce this output.

To calculate the direct material quantity variance, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 3,500 units* 7.6= 26,600

Direct material quantity variance= (26,600 - 27,200)*2.1= $1,260 unfavorable

<u>It is unfavorable because the company used more material than estimated to produce 3,500 units.</u>

6 0
3 years ago
Most economists prefer _____ as the best indicator of current economic performance.
balu736 [363]
Most economists prefer real GDP growth as the best indicator of current economic performance. Real GDP is the gross domestic product in constant dollars. In other words, it is a nation's total output of goods and services, adjusted for price changes. The real GDP allows economists to make useful comparisons of a nation's output and services by eliminating the effect of price changes. It is also known as inflation-corrected GDP and constant-price GDP.
6 0
3 years ago
Read 2 more answers
What is a sercured loan
VARVARA [1.3K]

Answer:

Secured loan is as below

Explanation:

A secured loan is money that you borrow by offering an asset as collateral. The lender will hold on the asset until the full loan amount is paid back. A secured loan is a good option when borrowing a large amount of money.  It attracts low-interest rates.

Lenders consider secured loans less risky because the customer provides a valuable asset as a back-up should they fail to repay. Homes and land are the most common properties used as collateral for secured loans.

6 0
3 years ago
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