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marissa [1.9K]
3 years ago
10

Which of the following is an example of crowding out? Question 13 options: A decrease in the rate of growth of the money supply

which causes a decrease in Real GDP. A budget deficit causes an increase in interest rates, which causes a decrease in investment spending. An increase in tariffs which causes a decrease in imports. A decrease in government housing subsidies which causes an increase in private spending on housing.
Business
1 answer:
Dmitriy789 [7]3 years ago
7 0

Answer:

A budget deficit causes an increase in interest rates, which causes a decrease in investment spending.

Explanation:

In domain of economics, crowding out

can be regarded as a phenomenon which take place as a result of increased in involvement of government in market economy sector which substantially has effect on remainder of the market, this effect could be on the supply side, it could be on demand side of the market. An example of crowding out is A budget deficit causes an increase in interest rates, which causes a decrease in investment spending.

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Peggy Grey's Cookies has net income of $400. The firm pays out 30 percent of the net income to its shareholders as dividends. Du
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3 years ago
The foreign exchange market is a market for converting the currency of one country into that of another country.
3241004551 [841]

Answer:

a. True

Explanation:

The foreign exchange market is a market for converting the currency of one country into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

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4 0
2 years ago
If the demand for a product decreases, what is likely to happen?
matrenka [14]
I m pretty sure the product supply would grow then the price would drop
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3 years ago
Preparing a Schedule of Cash Collections on Accounts Receivable Kailua and Company is a legal services firm. All sales of legal
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