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.
True you must determine all your income flexible expense. flexible expense are costs that are easily changed, reduced or eliminated
Answer:
$300,000
Explanation:
From the above passage, the information given is that the land was valued at $300,000 which is the fair market value price as at when Tobin's father died. What this means is that the amount of $300,000 will be Tobi's basis in the land although the land was purchased by his father at the cost of $19,000 in 1970.
Since the federal estate tax return was filed, and the value of the land was $300,000, hence his basis(Tobin) in the land would be $300,000
Answer:
buildup the amount of their reserves
Explanation:
Based on the information provided within this question it can be said that in order to address this problem, insurance companies typically buildup the amount of their reserves. By doing this the company's have a sort of "escape plan" allowing them to pay these excess costs that they would otherwise not be able to pay since it exceeds the amount that they are making.
Answer:
c. is illustrated when a government program is justified not on its merits but on the number of jobs it will create.
Explanation: