Answer: Option (B) is correct.
Explanation:
Suppose there is an increase in the government spending which means that it is a expansionary fiscal policy, this will also results in an increase in the government borrowings. Now, this increase in the government borrowings will increase demand for the loanable funds, as a result interest rate increases. This rise in the interest rate will lead to a reduction in investment spending.
Hence, the government spending crowding out the investment spending. Therefore, crowding out reduces the effect of expansionary fiscal policy.
1.an unwavering passion 2.also open mindedness 3.the desire to be an expert 4. a forward looking approach 5.a constant flow of ideas
this is 5 typical standard that contribute to the success of a business. hope i helped you out
Answer:
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The percent of increase is 1%. To figure this out, simply reason that 1% of $100 is $1. Therefore, because $300 is a threefold increase, 1% would be $3.
Answer:
The Productivity Paradox of Information Technology: Review and Assessment.