Ask Question
BusinessBusiness
3 February, 21:41

Which of the following is an example of crowding out? a. An increase in government spending increases interest rates, causing investment to fall. b. A decrease in private savings increases interest rates, causing investment to fall. c. A decrease in the money supply increases interest rates, causing investment to fall. d. An increase in taxes increases interest rates, causing investment to fall.

+2
Answers (1)
  1. 3 February, 21:47
    0
    a. An increase in government spending increases interest rates, causing investment to fall.

    Explanation:

    Crowding out occurs when increased government spending backfires and has a negative impact in the private sector due to the increase in interest rates, which are pivotal in the decision-making process of private investments. A high intensity crowding out may even lead to a negative overall impact in the economy. Therefore, the answer is alternative a.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following is an example of crowding out? a. An increase in government spending increases interest rates, causing investment to ...” 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
Dougan, Inc. allocates overhead based on a predetermined overhead rate of $2.40 per direct labor hour. Employees are paid $12.00 per hour. Job 24 requires 4.2 pounds of direct materials at a cost of $15.00 per pound. Employees worked a total of 17.
Answers (1)
If the acceptance strategy is used to handle every vulnerability in the organization, its managers may be unable to conduct proactive security activities and portray an apathetic approach to security in general. True / False.
Answers (1)
Describe trends in the labor force composition and how they affect human resource management. The key trends are:1. An aging workforce2. A diverse workforce3. Skill deficiencies of the workforce
Answers (1)
Crop researchers are interested in the productivity of a new variety of corn. they plant 25 plots with randomly-selected seeds of the new variety, record the yield in bushels per acre, and find that a 99% confidence interval for the true mean yield
Answers (1)
Borke Company has a credit balance of $3,000 in Allowance for Doubtful Accounts. The estimated bad debt expense under the percentage-of-sales basis is $4,100. The total estimated uncollectibles under the percentage-of-receivables basis is $5,800.
Answers (1)
New Questions in Business
In 2022 the Bramble Corp. had net credit sales of $920000. On January 1, 2022, the Allowance for Doubtful Accounts had a credit balance of $22100. During 2022, $33200 of uncollectible accounts receivable were written off.
Answers (1)
The price of a good will tend to fall when a. there is excess demand for the good. b. there is excess supply of the good. c. demand for the good increases. d. the supply of the good decreases.
Answers (1)
What is the best evidence that many different geologic periods are represented in virginia?
Answers (1)
Other things held constant, an increase in financial leverage will increase a firm's market (or systematic) risk as measured by its beta coefficient. a. True b. False
Answers (1)
What is the practice of allowing a client to die without the use of any extraordinary measures sometimes called?
Answers (1)
Home » Business » Which of the following is an example of crowding out? a. An increase in government spending increases interest rates, causing investment to fall. b. A decrease in private savings increases interest rates, causing investment to fall. c.
Sign Up Forgot Password?