Ask Question
BusinessBusiness
8 February, 19:24

Explain the "Crowding out" effect and state how this effect can be avoided.

Answers will be very much appreciated

+1
Answers (1)
  1. 8 February, 19:36
    0
    The Crowding Out Effect: A condition in which hiked up interest rates contribute to a decrease in private investment expenditure such that it hinders the initial increase of total investment spending is called crowding out effect. This can be avoided by reducing the involvement of the government in the functioning of the free market. Moreover, this effect can also be avoided by eliminating the fluctuations in interest rates that matter to the market such as that on loans.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Explain the "Crowding out" effect and state how this effect can be avoided. Answers will be very much appreciated ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $57,000 in cash and $57,000 worth of equipment. Frank's adjusted basis in the equipment was $42,000.
Answers (1)
1. If two short-term assets offer different interest rates, then investors will move their wealth towards the asset with the lower return. 2. There is no practical difference between long-term interest rates and short-term interest rates. 3.
Answers (1)
Breaking up a web page into its components to identify worthy words/terms and indexing them using a set of rules is called
Answers (1)
Berning Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimated life of 8 years, or 10,000 hours of operation.
Answers (1)
You are the CFO of a publicly-traded company in a very competitive industry. You are preparing the annual report and SEC filings and you are carefully considering how much information to provide.
Answers (1)
New Questions in Business
In which year were tobacco commercials banned from network television in the united states?
No Answers
Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group of answer choices a. direct Maggie toward a job with more autonomy. b.
Answers (1)
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
An Insurance company is a business in which it pays to the company if there is a loss, damage, treatments or injury for the payment of premium amount. It calculates the risks that has occurred and pays to compensate the premium amount.
Answers (1)
Home » Business » Explain the "Crowding out" effect and state how this effect can be avoided. Answers will be very much appreciated
Sign Up Forgot Password?