Answer:
Large budget deficits may reduce private investment, thereby stifling economic growth.
Explanation:
Crowding out is a term that describes the situation that occurs when the increase in involvement of the government in a particular sector of the market economy, has a direct effect on the remaining market, either on the demand or supply side of the market.
Therefore, crowding out effects which can be caused as a result of government financing large budget deficit, thereby, making them to be involved on a particular sector of the economy, will result to government needing more capital, hence encouraging savings, through increased in interest rate, or selling of bonds and treasury bills with attractive returns, which will leads to reduction in private investment spending, such that it affects negatively the increase in inital total investment.
Watching news and having it in your mind all the time
Estimated 1500-200 languages
The Williams co. combines all of its orders going to Tokyo, Japan, during the month into a single shipment. this is an example of: <u>Market area consolidation</u>.
In technical analysis, consolidation describes an asset's oscillation between a well defined pattern of trading levels. Market indecision that lasts until the asset's price rises above or below the trading pattern is commonly understood as consolidation. A collection of statements that display (consolidates) a parent and subsidiary firm as one entity is known as consolidation in financial accounting.
When an index or a stock trades inside a range, the market is said to be consolidating. According to others, the trend is sideways and may change depending on the situation. Once this range is disrupted, it could result in greater moves, but the movement cannot be accurately forecast until the range is intact.
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