Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. This group also believed that fiscal policy should be used only if the central bank:a. follows a monetary policy rule.
b. faces problematic lags in propagating changes throughout the economy.
c. is just as effective in countering recessions as monetary policy.
d. is the only thing that can lower natural unemployment.
e. can be used most of the time, but monetary policy becomes a better option when velocity is fluct

Answers

Answer 1
Answer:

Answer:

a. follows a monetary policy rule.

Explanation:

Crowind out refers to the activity of the governemnt in a market in such a manner that impact the rest of the market whether by supply or demand.

The centrla bank should look whether the LM is more close to horizontal formtherefore, full multiplier effect on the government multiplier and no change associate with the interest rate making no crowind-out effect or as littler as possible when the LM line is almost horizontal.

But, when the LM line is vertical or almost vertical the spending will have no impact in the ouput. Hence it will only acomplish the crowind out effect as it removes loanable fund from private sector making the interest rate increase

Answer 2
Answer:

Answer:

Crowding out is of the position that fiscal policy should be used only if the central bank b) faces problematic lags in propagating changes throughout the economy.

Explanation:

A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect.

The crowding out effect suggests rising public sector spending drives down private sector spending.

There are three main reasons for the crowding out effect to take place: economics, social welfare, and infrastructure.


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Quick Eats is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Quick Eats also wants to adopt the same strategy. Which of the following will be a likely implication of this decision?A. Quick Eats will face low profit potential.
B. Quick Eats will be able to create higher value for its customers.
C. Quick Eats will be better placed to gain a competitive advantage in the industry.
D. Quick Eats will not face any direct competition in the industry.

Answers

Answer:

Which of the following will be a likely implication of this decision?.

B. Quick Eats will be able to create higher value for its customers.

Explanation:

A competitive advantage is to create value for your customers that in many cases your competitors cannot. Among which we can highlight lower cost, faster service, better customer service, a more convenient location.

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 28,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 500 and 80 units, respectively. Budgeted direct labor costs for June would be:

Answers

Answer:

$2,261,560

Explanation:

Budgeted finished goods inventory (June 1) = beginning = 500 units

Budgeted finished goods inventory (June 30) = ending =80 units

Planned sales (June) = 28,000 units

Direct labor hours = 4.1 per direct labor hour

Direct labor rate = $20 / direct labor rate

June production :

Planned sales + ending inventory - beginning inventory

(28000 + 80 - 500) units

= 27,580 units

Total Direct labor hour required for production :

27,580 × 4.1 = 113,078 labor hours

Cost of production:

Total direct labor hour × rate per hour

113,078 × $20 = $2,261,560

An increase in the supply of money in an economy could be caused by (choose all that apply): a. an increase in the discount rate. b. a decrease in the discount rate. c. an increase in the required reserve ratio. d. a decrease in the required reserve ratio. e. a sale of government securities by the Fed. f. a purchase of government securities by the Fed

Answers

The first two answers are the opposites of each other so it's likely that one of the is correct and indeed -a decrease in the discount rate means that it's cheaper for the banks to borrow money, so there will be an increase in money amount! (b is correct)
  The same is true for the other two options - and d ) is correct because it "unfreezes" the money that can be used

Also the last two options - a sale here means that the government is borrowing the money from the people. However, this doesn't change the supply of the money, only how the money is distributed. (neither are correct)

What are depository and non depository financial institutions? How do they differ?​

Answers

Depository institutions---is a financial institution (such as a savings bank, commercial bank, savings and loan association, or credit union) that is legally allowed to accept monetary deposits from consumers.It contribute to the economy by lending much of the money saved by depositors.financial non depository institutions are financial intermediaries that do not accept deposits but do pool the payments of many people in the form of premiums or contributions and either invest it or provide credit to others. Hence, nondepository institutions form an important part of the economy. These institutions receive the public's money because they offer other services than just the payment of interest. They can spread the financial risk of individuals over a large group, or provide investment services for greater returns or for a future income.Nondepository institutions include insurance companies, pension funds, securities firms, government-sponsored enterprises, and finance companies. There are also smaller nondepository institutions, such as pawnshops and venture capital firms, but they constitute a much smaller portion of sources of funds for the economyPlz rate me best answer I'm trying to get a few of thoughts so iv Ben trying hard to answer very descriptive I am # 2 person yesterday to answer the most questions yesterday

Answer:  A.  Depository institutions earn money from what customers put into the institution.

Explanation:

Took a quiz. Good luck :)

Examine the method that fnb (first national bank )can use to compete with other banks in south Africa

Answers

Hey there

There are many ways First national bank can compete with others. One way is to reduce the interest. The lower the interest the more people will come there. Have more branches that are open for more hours then others so if people need money they can come to you.  

A notable method that FNB uses to compete favorably with other banks is its low bank fee and bonus programs.

What is FNB?

FNB, also popularly known as First National Bankis one of the top banks in South Africa that drives its market through innovation and a good reward system to keep its customers.

Incentivising customers has proven to be an effective way to engage customers in business.

Learn more aboutFNB here:

brainly.com/question/1338863?source=archive

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What does the state of a nation’s infrastructure say about the country’s level of economic development?

Answers

A nation’s infrastructure ascribes to the structure, system and facilities of a country. Telecommunication, transportation, bridges, roads, tunnels, water supply, electrical grids are some of the infrastructures essential to enable and sustain society. This boosts a country’s economy. Good infrastructure leads to a faster development. Trade, communication and transportation are done effectively and efficiently. A country is considered to be developed when the infrastructures are stable and reliable.