Answer: Deficit; higher; a decrease
Explanation:
<em>The term crowding-out effect refers to a situation in which a government </em><em><u>deficit</u></em><em> results in</em><em><u> higher</u></em><em> interest rates, causing </em><em><u>a decrease</u></em><em> in private spending on investment and consumer durables.</em>
The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.
If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.
As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of <em>crowding out</em> the private sector.
Answer:
Accounting rate of return, also known as the Average rate of return, or ARR is a financial ratio used in capital budgeting. The ratio does not take into account the concept of time value of money. ARR calculates the return, generated from net income of the proposed capital investment. The ARR is a percentage return. Say, if ARR = 7%, then it means that the project is expected to earn seven cents out of each dollar invested (yearly). If the ARR is equal to or greater than the required rate of return, the project is acceptable. If it is less than the desired rate, it should be rejected. When comparing investments, the higher the ARR, the more attractive the investment. More than half of large firms calculate ARR when appraising projects.
Explanation:
hope this helps
There are different types of prototype decisions. Cereal is an example of a consumer product, where many low cost comprehensive prototypes are built since the product has high market risk.
There are different kinds of Prototype Decision when looking at the technical risk compared to the prototype cost. They are:
- Low risk - low cost (printed stuff)
: Here, there is no need for comprehensive prototypes.
- Low risk - high cost (ships, buildings)
: Here, there is no way one can afford comprehensive prototype.
- High risk - low cost (software)
: Here, there a a lot of comprehensive prototypes.
- High risk - high cost (airplanes, satellites)
: This often make use of analytical models a lot, have a well throughout planned of comprehensive prototypes
Prototyping is simply known to be the estimation or approximation of the product with its one or more areas of interest. It has 2 kinds which are Physical prototypes vs. analytical prototypes
, Comprehensive (with all the attributes of a product) vs. focused.
Learn more about Prototyping from
brainly.com/question/7509258
Economic stimulus Answer:
Explanation:
Answer: Both will raise the same amount
Explanation:
The government here is certain that it can achieve the same quantity and price regardless of if it uses a pollution tax or pollution allowance. This means that it would be charging the companies the same regardless of the method used.
Both methods would therefore yield the same amount if the government uses either of them.
