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gizmo_the_mogwai [7]
3 years ago
5

Which of the following is a correct description of the crowding-out effect of deficit spending?

Business
1 answer:
borishaifa [10]3 years ago
5 0

Answer:

the options are missing, so I looked for them:

a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.

d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.

the answer is:

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

Explanation:

The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.  

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Taxi is a cab service company. Every vehicle used by the company has a wireless active tracking system installed in it, which al
abruzzese [7]

Answer:

<u>Objective control.</u>

Explanation:

Some business objectives require the implementation of internal controls in their processes.

Objective control acts as cloud software that enables the company to monitor all activities, whether internal or external, with the added benefit of mitigating risk, ensuring compliance with required quality and legislative standards, lowering costs and broadening vision on real-time processes.

5 0
3 years ago
What is the difference between a price floor and a price ceiling?
Rufina [12.5K]
Just like in math, floor means to round down (minimum), ceiling means to round up (maximum).

The only one that'd make sense would be the first statement.
6 0
3 years ago
Read 2 more answers
Summer Nights sells bottles of bug spray for $ 9.00 each. Variable costs are $ 4.00 per​ bottle, while fixed costs are $ 40 comm
Yanka [14]

Answer:

Operating Income              $75,000             $115,000

Explanation:

The computation of the operating income reflected is shown below:

Units                                    23,000       $31,000

Contribution Margin per Unit   $5                $5

Contribution Margin (Units × Per Unit) $115,000   $155,000

Less : Fixed Cost              -$40,000             -$40,000

Operating Income              $75,000             $115,000

The contribution margin per unit is come from

= Selling price per unit - variable cost per unit

= $9 - $4

= $5

8 0
3 years ago
Leon is 28 years old and pays cash for everything he buys. He has never had credit in his name and never missed or been late on
arlik [135]

Answer:

Nothing.

Explanation:

It is known that a good credit score generally comes from a history of managing money responsibly. This doesn’t mean you shouldn’t borrow money though; in fact, companies often like to see a track record of timely payments and sensible borrowing. In Leon's case, he has no dealings with credit cards as he makes all his transaction with physical cash; therefore he has no credit score in any way.

Leon has to work towards improving his poor credit score or need to build up credit history from nothing.

3 0
3 years ago
An accounting system must be able to a.collect and classify information. b.summarize information. c.report information. d.All of
Vikentia [17]

Answer:

The answer is D.

Explanation:

The chronological order of Accounting System is:

Collecting of information

Classifying of information

Summarizing of information

Reporting a business financial

and operating information.

You can see all the options are in the chronological order of accounting system. Therefore, all of the above is correct.

5 0
3 years ago
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