Answer:
Explanation:
Effect of crowding out:
The crowding out phenomena describes the economic phenomena in which an increase in government public spending leads to reduced or perhaps may eliminate of private investment.
Multiplier:
The multiplier represents the ratio of income to investment change.
Given that:
$13 billion increase in government spending will lead to a $52 billion
The rise in demand for goods & service will be the value of multiplier which is
= 52/13
= 4
To determine the multiplier using the formula:
Multiplier = 1 /( 1- MPC)
4 = 1/(1 - MPC)
4 (1 - MPC) = 1
(1- MPC) = 1/4
-MPC = 0.25 - 1
MPC = 0.75
Marginal propensity to consume = 0.75
Answer:
The correct answer is letter "B": The tendency of competition to cause individuals and firms to unintentionally promote the interests of society.
Explanation:
In his book "<em>An Inquiry into the Nature and Causes of the Wealth of Nations</em>" (1776), British economist Adam Smith (1723-1790) introduced the term "invisible hand" to refer that economic factors (buyers and sellers) naturally influence in the fluctuations of supply and demand without the need for the intervention of the government.
According to Smith, buyers and sellers interactions act as an "invisible hand" arranging proper levels of competition between businesses and promoting the best interest of societies.
Answer:
Decrease or fall, Purchasing
Explanation:
Appreciation is the term which is defined as the increase in the currency value relative to the another currency, which could be exchanged for a huge amount of foreign currency.
So, when there is appreciation in euro in relation to US dollar, it cause US grounded MNC reported earnings to decrease as the US dollar will not be exchanged because euro is appreciated.
And when the firm desire to reduce the exposure to the exchange rate movements, it might stabilize the reported earnings through purchasing the euros in the foreign exchange market.
Answer:
Human resource management can be defined as: ‘the department of a business or organization that deals with the hiring, administration, and training of personnel.
