Explain how increases in government spending can crowd out investment spending. Is crowding out a major concern
Question:
Explain how increases in government spending can crowd out investment spending. Is crowding out a major concern when the economy’s output is below its potential?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
Increases in government spending can potentially crowd out investment spending through several channels When the government increases its spending it ...View the full answer
Answered By
Tobias sifuna
I am an individual who possesses a unique set of skills and qualities that make me well-suited for content and academic writing. I have a strong writing ability, allowing me to communicate ideas and arguments in a clear, concise, and effective manner. My writing is backed by extensive research skills, enabling me to gather information from credible sources to support my arguments. I also have critical thinking skills, which allow me to analyze information, draw informed conclusions, and present my arguments in a logical and convincing manner. Additionally, I have an eye for detail and the ability to carefully proofread my work, ensuring that it is free of errors and that all sources are properly cited. Time management skills are another key strength that allow me to meet deadlines and prioritize tasks effectively. Communication skills, including the ability to collaborate with others, including editors, peer reviewers, and subject matter experts, are also important qualities that I have. I am also adaptable, capable of writing on a variety of topics and adjusting my writing style and tone to meet the needs of different audiences and projects. Lastly, I am driven by a passion for writing, which continually drives me to improve my skills and produce high-quality work.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers
Question Posted:
Students also viewed these Business questions
-
1. When the economy operates at full employment, an increase in government spending must crowd out consumption. ___________ (True/False) 2. A(n) ________ economy is open to trade, whereas a closed...
-
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
-
Question A4 (12 marks) Comfort Dance Corporation (CDC) is a major distributor of dance shoes. All sales are on terms 2/10, n/30. CDC uses a perpetual inventory system. The March opening balance in...
-
The potential losses are sorted in the following table. The absolute VaR is 8 Million. What is the relative expected shortfall from the mean? Sorted returns Returns ( Million) -12 -10 -8 -6 -4 -3 -1.5
-
For the spring assemblage shown in Figure P2-2, determine the displacement at node 2 and the forces in each spring element. Also determine the force F3. Given: Node 3 displaces an amount...
-
At the beginning of the year Zoolander Inc. had total assets of $429,000 and total equity of $183,000. By the end of the year Zoolander had total assets of $406,000 and total liabilities of $174,000....
-
For a given commodity, the line-haul cost is $13 per mile. For a trip of 200 miles and a shipment of 300 cwt., what is the cost per hundredweight? If the shipment is increased to 500 cwt., what is...
-
Under what circumstances would you consider the use of terms that are high in connotative meaning to be ethical? When would you consider it to be unethical? Explain your reasoning.
-
Wages Payable Data table
-
Describe how automatic stabilizers respond when output is above potential output. Assess the extent to which these responses are timely, targeted, and temporary.
-
Explain how different types of government spending add to GDP directly and indirectly, and how a rise in government spending can have a multiplied effect on GDP.
-
The following is an extract from the 2013 Annual Report of SIPEF NV: Because of the inherent uncertainty associated with the valuation at fair value of the biological assets due to the volatility of...
-
1. Write short notes on Discrete Cosine Transform (DCT) 2. Describe Fast Fourier Transform 3. Write short notes on the Hotelling transform
-
1Explain Discrete Fourier Transform in detail. 2. Explain the Properties of 2D discrete Fourier Transform 3. Discuss Hadamard's transformation in detail
-
1. Specify the objective of image enhancement technique. 2. List the 2 categories of image enhancement. 3. What is the purpose of image averaging? 4. What is meant by masking? 5. Define histogram.
-
6. What is meant by histogram equalization? 7. Differentiate linear spatial filter and non-linear spatial filter. 8. Give the mask used for high boost filtering. 9. What is meant by a laplacian...
-
11. What do you mean by Point processing? 12. Define Derivative filter? 13. Define spatial filtering 14. What is a Median filter? 15. What is maximum filter and minimum filter? 16. Write the...
-
An aqueous solution is 0.797 M magnesium chloride. Given that the density of the solution is 1.108 g/mL, what is the molality of magnesium chloride in this solution?
-
For the following arrangements, discuss whether they are 'in substance' lease transactions, and thus fall under the ambit of IAS 17.
-
Over a long period of time, the price of a candy bar rose from $0.10 to $0.60. Over the same period, the consumer price index rose from 150 to 300. Adjusted for overall inflation, how much did the...
-
Explain the meaning of nominal interest rate and real interest rate. How are they related?
-
The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2010, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50....
-
Sociology
-
I am unsure how to answer question e as there are two variable changes. In each of the following, you are given two options with selected parameters. In each case, assume the risk-free rate is 6% and...
-
On January 1, Interworks paid a contractor to construct a new cell tower at a cost of $850,000. The tower had an estimated useful life of ten years and a salvage value of $100,000. Interworks...
Study smarter with the SolutionInn App