An increase in government spending crowds out private investment because

Asked by admin @ 28/10/2021 in Business viewed by 243 People

Determine if the following statements are true or false. An increase in government spending can crowd out private investment. An improvement in the budget balance increases the demand for financial capital. An increase in private consumption may crowd out private investment. Lower interest rates can lead to private investment being crowded out. A trade balance in surplus increases the supply of financial capital. If private savings is equal to private investment, then there is neither a budget surplus nor a budget deficit.

Answered by admin @ 28/10/2021

Answer: true = 1, 3

false = 2, 4, 5, 6

Explanation:

1. True, If the govt. increases spending the supply and demand for the private sector will diminish.

2. False, Budget balance can be improved from several other measures also.

3. True, if the private consumption comes from the government spending.

4. False. lower interest rates will encourage the businesses to borrow money for expansion.

5. False, trade balance surplus means the export of a company exceeds its imports.

6. False, because private savings and investment are not the only factors constituting budget surplus or deficit.

Able, baker, and charles are engaged in the marketing to and enrollment of beneficiaries into medicare health plans. mr. able is an independent agent paid directly by a health plan. ms. baker is an independent agent paid through a field marketing organization (fmo). mr. charles is an independent agent paid for his work by a third-party marketing organization (tmo). how do the cms compensation rules apply to these three agents?

Asked by maham237 @ 13/01/2021 in Business viewed by 2747 persons

An increase in government spending crowds out private investment because

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