The term crowding-out effect refers to a situation in which a government _ results in interest rates, causing __ in private spending on investment and consumer durables.

Answers

Answer 1

Answer: Deficit; higher; a decrease

Explanation:

The term crowding-out effect refers to a situation in which a government deficit results in higher interest rates, causing a decrease in private spending on investment and consumer durables.

The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.

If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.

As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of crowding out the private sector.

Related Questions

3. “The International Monetary Fund (IMF) and the World Bank are two institutions that have outlived their usefulness”. Do you agree?

Answers

Answer:

“The International Monetary Fund (IMF) and the World Bank"

Have they outlived their usefulness?

No.

The IMF and the World Bank have not outlived their usefulness. They remain very useful and relevant to our world today. The problem they have experienced stem in part from the neglect of their purposes, because of the near-absence of the grassroot touch. They can refocus on their purposes and reduce elitistism, and then they continue to be useful.

But, they cannot rediscover and concentrate on their purposes without the cooperation of member-countries. Recalcitrancy does not allow any organized institutions without police power to function at their best. Member-countries must learn to cooperate with these bodies to achieve their purposes. There is still global poverty ravaging the world population, even among the rich and developed countries of the world.

In most developing countries, their national governments are traditionally entrenched as anti-developmental. While they make long and meaningless speeches at world fora, back home they do not walk their talk and so often renege on their promises. This is why it seems that the impact of these world bodies are not being felt. National governments must be able to show responsibility to allow the effects of monetary policies and agreements to benefit the poor and the vulnerable.

Explanation:

The World Bank is an international body of the United Nations with about 189 member-countries. It works with developing countries to reduce poverty, increase access to wealth, and promote global prosperity. The IMF is responsible for ensuring that the international monetary system is operational and stable to ginger sustainable global economic growth.

Though not specifically cited in the producer's contract, the producer is expected to telephone prospects on the insurer's behalf to arrange sales appointments. This is an example of what kind of producer authority?

Answers

Answer:

Implied authority

Explanation:

Implied authority defines an authority with respect to agent that involves jurisdiction to perform the acts so that the objectives of the organization could be achieved. Also, it is a binding contract on other person behalf or company

Therefore according to the given situation, this is an example of implied authority

The Treasury bill rate is 4% and the market risk premium is 7%.

Project Beta Internal rate of return %
P 1.0 14
Q 0 6
R 2.0 18
S 0.4 7
T 1.6 20

Required:
a. What are the project costs of capital for new ventures with betas of 0.75 and 1.75?
b. Which of the following capital investments have positive NPVs?

1. P
2. Q
3. R
4. S
5. T

Answers

Answer:

the answer is going to be 3. R

Describe various ways that knowledge management systems could help firms with sales and marketing or with manufacturing and production.

Answers

Answer:

Please see explanation below.

Explanation:

Knowledge management system is a system that allows sales people have quick and right information about a company's value proposition without having to wait for feedback from team members or someone else in the company. An advantage of knowledge management system is the ability to train many employees remotely or places where they may be needed.

Various ways ways that knowledge management system could help sales and marketing.

•Getting sales people on the same page. A company's sales team should understand the value propositions of their firm and how such values distinct them from the competitors. Each sales member should be acquitted with the knowledge management system which provides an easily accessible place for the company's value proposition. It also means that the values should readily be known and understood by everyone and are able to apply them according to how situations demands.

• Allowing to refine and deliver a better training process. This explain that knowledge management system can assist in terms of tracking questions frequently asked by sales people , contents mostly assessed by them and activities often carried out by top sales person that bring about the best result. All the information gathered including possible answers and training contents can then be loaded into the knowledge management system to help train new hires.

• Helping to track valuable insights and information. Prospects and customers usually give useful feed back which can assist a sales team and sales representative handles future sales opportunities. It is not enough capturing these information on the knowledge management system, they should be properly organized and accessible for other team members to benefit .

• Making it easier for sales and marketing to help each other. An important part of marketing team's task is to understand the challenges faced by the target audience and the questions prospects commonly ask so as to create relevant contents for them and also upload them on the knowledge management system portal. Such information should be often accessed by the team and then take better advantage of it.

Other areas knowledge management system could help sales and marketing are assistance with sales trend, high level decisions with regards to product orders, price negotiations . etc

A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability. The manager believes there is a 75 percent chance the recession will end in six months and profits will return to $400 million. However, there is a 25 percent chance the recession will not end in six months, resulting in a $5 million loss. The expected profits over the next six months are:

Answers

Answer:

Expected profit = $298.75 million

Explanation:

To calculate the expected return or expected profits, we will simply multiply the probability of each event by the return expected in that event and take a sum the answers. Thus, the expected profit can be calculated as follows,

Expected profit = Probability of recession ending * Profit if recession ends + Probability of recession not ending * profit or loss if recession does not end

Expected profit = 0.75 * 400 + 0.25 * -5

Expected profit = $298.75 million

A customer has purchased 10,000 shares of Fromage stock, a Swiss cheese company. The stock is not traded in the United States. Fromage declares and pays a dividend of 15,000 Swiss Francs, which, when converted to dollars, equals $10,000. Switzerland imposes a 20% withholding tax on dividends repatriated outside its borders. How is the dividend reported on this investor's U.S. tax return

Answers

Answer:

$10,000 of dividends are reported, along with a $2,000 tax credit for monies withheld in Switzerland

Explanation:

As we know that if there is a direct investment in a foreign security, so the foreign country having a tax on dividend send an individual his home country against his will now if this condition arise so the same i.e tax credit should be levy on the same person while filing the U.S tax return

Since $10,000 dividend is received along with it $2,000 would be the tax credit

When a deliverable arrived, Craig met with the team member responsible
for ordering the deliverable to confirm it was the correct model and size.

Which of the following project elements was Craig monitoring in this scenario?

a. Budget
b. Schedule
c. Scope
d. Risk

Answers

Answer:

Project Element Craig Monitored in this scenario:

d. Risk

Explanation:

The element of the project that Craig monitored ensures that the deliverable conforms with the correct model and size because there is the risk that this could not conform if a deliverable was not not checked with the team member who ordered the deliverable. Since higher risks of deliverables not conforming to model and size would render the whole project unsuccessful, Craig has to meet with the team member responsible. In order words, the meeting between Craig and the team member for confirmation of correct model and size eliminates the risks of non-conformance.

In the example above when deliverable came and Craig met with the team member for ordering confirming whether the model and size was correct, Craig was monitoring Risk. So the correct option is D.

Risk refers to the possibility chances that the desired or the expected result will be obtained from the activities that are undertaken. Risk is directly related to the reward of such activity.

In the example above where Craig confirms whether the model and size of goods arrived were correct with the help of the team member who ordered such deliverable, risk was being monitored.

In this case the risk can be denoted by value of 1 as the chances of getting the correct model and size are equal with chances of getting the incorrect model and size. Risk can be denoted by beta .

[tex]\rm Risk = \beta[/tex]

Monitoring of risk is an important aspect so as to ensure whether the activities undertaken for the benefit of the business are standing true to their efforts or not.

Hence, the correct option is D that Craig was monitoring risk by checking the deliverable was correct in terms of model and size with the help of a team member.

To know more about risk monitoring, click the link below.

https://brainly.com/question/1510213

The following information describes the production activities of Mercer Manufacturing for the year.
Actual direct materials used 28,000 lbs. at $4.90 per lb.
Actual direct labor used 8,650 hours for a total of $174,730
Actual units produced 51,600
The budgeted standards for each unit produced are 0.50 pounds of direct material at $6.85 per pound and 10 minutes of direct labor at $21.20 per hour.
1. Compute the direct materials price and quantity variances. Do not round intermediate calculations.
2. Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Do not round intermediate calculations.

Answers

Answer:

Actual Quantity = 28,000

Actual Price = 4.90

Standard Quantity = 25,800

Standard Price = 4.85

1)a. Direct Material Price variance = (Standard price – Actual Price)*Actual Quantity

= (4.85 - 4.90) * 28,000

= $1,400 U

b. Direct Material Quantity variance = (Standard Quantity – Actual Quantity)*Standard price

= (51,600*0.5 - 28,000)*4.85

= $10,670 U

2) a. Direct Labor Rate Variance = (Standard Rate – Actual Rate)*Actual Hours

= (21.20 - 20.2) * 8,650

= $8,650 F

b. Direct Labor Efficiency variance = (Standard Hours – Actual Hours)*Standard rate

= (51,600*1/6 - 8,650) * 21.20

= $1,060 U

In Rooney Company, direct labor is $18 per hour. The company expects to operate at 12,000 direct labor hours each month. In January 2017, direct labor totaling $222,400 is incurred in working 12,600 hours.
Prepare a flexible budget report.

Answers

Answer:

Flexible budget Report for Rooney Company

Flexed budget Actual Variance

Labour hours 12,600 12,600

Labour cost($) 226,800 222,400 4,400 Favorable

Explanation:

A flexible budget is that which is prepared to reflect the actual activity level achieved.

It is useful for a control purpose; to compare the actual result to the expected performance. The expected performance is the the flexible budget which is a revised master budget.

Also it uses the assumptions of the static budget like standard costs and prices.

Flexed budget for labour = standard hour × actual labour cost

= $18× 12,600 = $ 226,800

Flexible budget Report for Rooney Company

Flexed budget Actual Variance

Labour hours 12,600 12,600

Labour cost($) 226,800 222,400 4,400 Favorable

The Marketing Control Statement is a valuable statement for marketers because it only utilizes costs that the marketer can control. True False

Answers

Answer: True

Explanation:

The Marketing Control Statement is quite beneficial to marketers as it avoids fixed costs and shows them the variable and programmed costs both of which can be controlled. This enables them to know what they need to and can change in a way that they can come up with an optimal marketing mix to ensure profitability.

It is also a very uncomplicated statement to prepare which further ingratiates it to marketers who would like to avoid all the jargon of income statements.

The given statement is true.

The following information should be considered:

The Marketing Control Statement should be beneficial for marketers as in this the fixed cost are ignored and the variable & other cost should be controlled. Due to this, the profitability should increased

Therefore we can conclude that The given statement is true.

Learn more: brainly.com/question/17429689

A catering company prepared and served 375 meals at an anniversary celebration last week using 3 workers. The week before, 2 workers prepared and served 225 meals at a wedding reception
a1. Calculate the labor productivity for each event. (Round your answers to 1 decimal place.) Anniversary Wedding meals/worker meals/worker
a2. For which event was the labor productivity higher?
Anniversary
Wedding

Answers

Answer:

for anniversary = 125

for wedding = 112.5

anniversary

Explanation:

Labour productivity = number of meals / total number of workers

for anniversary = 375 / 3 = 125

for wedding = 225 / 2 = 112.5

labour productivity is higher for the anniversary because one unit of labour produces more meals when compared to the wedding.

assume that autonomous consumption is $1610 billion and disposable income is $11,200 billion. Using the consumption function, calculate consumption expenditure

Answers

Answer: $9,226

Explanation;

The consumption function is;

Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)

Marginal Propensity to Consume;

=Increase in consumption expenditure/ Increase in Disposable income

= 680/1,000

= 0.68

Consumption = Autonomous consumption + (Marginal Propensity to consume * Disposable income)

= 1,610 + ( 0.68 * 11,200)

= $9,226

Marston Manufacturing Company has two divisions, L and H. Division L is the company’s low-risk division and would have a weighted average cost of capital of 8% if it was operated as an independent company. Division H is the company’s high-risk division and would have a weighted average cost of capital of 14% if it was operated as an independent company. Because the two divisions are the same size, the company has a composite weighted average cost of capital of 11%. Division H is considering a project with an expected return of 12%. Should Marston Manufacturing Company accept or reject the project? Reject the project Accept the project On what grounds do you base your accept–reject decision? Division H’s project should be accepted, as its return is greater than the risk-based cost of capital for the division. Division H’s project should be rejected since its return is less than the risk-based cost of capital for the division.

Answers

Answer:

Should Marston Manufacturing Company accept or reject the project?

Marston C Company should reject the project because its expected return is lower than Division H's cost of capital.

Since the divisions' risk is so different, and probably their projects are also very different, the company should use different costs of capital to accept of reject the projects based on each division's cost of capital.

Imagine another situation where Division L is evaluating a project that yields 10%. If they used the company's WACC, then they should reject the project, but if they used the division's cost of capital, then they should accept the project (in this case I would recommend accepting it).

Explanation:

Division H's risk = 14%

Division L's risk = 8%

WACC = 11%

Oriole Company uses flexible budgets. At normal capacity of 15000 units, budgeted manufacturing overhead is $120000 variable and $360000 fixed. If Oriole had actual overhead costs of $483000 for 18000 units produced, what is the difference between actual and budgeted costs

Answers

Answer:

$21,000 favorable

Explanation:

Given the above information,

Variable overhead rate = $120,000 / 15 units

= $8

Overhead variance = Real - Allocated

= $483,000 - (8 × 18,000 + $360,000 )

= $483,000 - $504,000

= $21,000 favorable

Who is responsible for responding to workflow(s) for equipment dispatch requests through the business workplace require An approving authority must approve

Answers

Answer:

Commander

Explanation:

GCSS-Army is short for Global Combat Support System-Army. The GCSS is a section of the United States Army that is fielded under the 11th Armored Cavalry Regiment. There are the GCSS Wave 1 and GCSS Wave 2. These two groups have different roles.

The role of the Commander falls under the Wave 2 functions where he is required to perform the roles of maintenance, dispatch, unit supply, and property book functions. The Wave 1 function is mostly about allowing access to support supply activity functions. The commanders in any organization they work with can screen several transactions and give approval for equipment dispatch.

Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance.
A. True
B. False

Answers

Answer:

A. True

Explanation:

Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance. Also, a negative direct labor efficiency variance is considered favorable one. And for a direct labor, if the efficiency and rate variances are both negative, then the flexible budget variance will be unfavorable. Therefore, the statement of the question is true.

A firm has sales of $1,220, net income of $226, net fixed assets of $544, and current assets of $300. The firm has $101 in inventory. What is the common-size statement value of inventory

Answers

Answer:

11.97%

Explanation:

Common size statement value of inventory is where all accounts are expressed as a percentage of total assets.

Total assets = Net fixed assets + Current assets

= $544 + $300

= $844

Common size statement value of inventory = Inventory ÷ Total assets

= $101 ÷ $844

= 0.1197

= 11.97%

Trevor Company discloses supplementary operating segment information for its three reportable segments. Data for 20X8 are available as follows:
Segment A Segment B Segment C
Sales $500,000 $300,000 $200,000
Traceable operating
expenses 250,000 120,000 90,000
Allocable costs for the year was $180,000. Allocable costs are assigned based on the ratio of a segment's income before allocable costs to total income before allocable costs. The 20X8 operating profit for Segment B was:_______.
A) $180,000.
B) $120,000.
C) $126,000.
D) $110,000.

Answers

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Segment A Segment B Segment C

Sales $500,000 $300,000 $200,000

Traceable operating expenses 250,000 120,000 90,000

Profit= 250,000 180,000 110,000 = 540,000

Allocable costs for the year was $180,000.

First, we need to allocate costs to Segment B:

Segment B= 180,000/540,000= 0.33

Allocate= 0.33*180,000= 60,000

Now, we can calculate the profit:

Segment B profit= 180,000 - 60,000= 120,000

f covered interest arbitrage opportunities do not exist, Group of answer choices interest rate parity holds. interest rate parity does not hold. interest rate parity holds, and arbitragers will be able to make risk-free profits. arbitragers will be able to make risk-free profits. interest rate parity does not hold, and arbitragers will be able to make risk-free profits.

Answers

Answer: interest rate parity holds

Explanation:

Covered interest arbitrage is a trading strategy that is used by an investor when the person whereby takes advantage of the differences in interest rate between two nations and invest in the currency that brings higher value.

If covered interest arbitrage opportunities do not exist, it simply means that interest rate parity holds.

The open interest on silver futures at a particular time is the Group of answer choices number of all long or short silver futures contracts outstanding. number of silver futures contracts traded during the day. number of silver futures contracts traded the previous day. number of outstanding silver futures contracts for delivery within the next month.

Answers

Answer:

number of all long or short silver futures contracts outstanding.

Explanation:

The open interest on silver futures at a particular time is the number of all long or short silver futures contracts outstanding. Open interest can be defined as the total or overall number of contracts (open long and short positions) outstanding in a futures market.

In stocks exchange, when a contract begins trading it has an open interest that is equal to zero and in future dates, more contracts are entered into as time passes by.

Additionally, majority of the contracts are liquidated before their maturity date.

Which of the following statements about executing and evaluating the promotion program is most accurate?

a. Although there are five elements in the promotional mix, the only element that reallybenefits from an IMC audit is advertising.
b. Most IMC programs have no difficulty creating a pretest, but posttests are much moredifficult to construct since a number of unknown elements must be measured.
c. To fully benefit from IMC programs, companies must create and maintain a test-resultdatabase that allows comparisons of the relative impact of the promotional tools and theirexecution options in varying situations.
d. The ideal IMC program does not need any evaluation if it is executed according to plan.E. The most effective IMC audits are external. Internal audits tend to skew results to fitexpectations.

Answers

Answer: To fully benefit from IMC programs, companies must create and maintain a test-resultdatabase that allows comparisons of the relative impact of the promotional tools and their execution options in varying situations.

Explanation:

Out of the statements about executing and evaluating the promotion program that were given in the question, the option that is most accurate is that to fully benefit from IMC programs, companies must create and maintain a test-result database that allows comparisons of the relative impact of the promotional tools and their execution options in varying situations.

Therefore, option C is the correct answer.

Radoski Corporation's bonds make an annual coupon interest payment of 7.35% every year. The bonds have a par value of $1,000, a current price of $1,470, and mature in 12 years. What is the yield to maturity on these bonds

Answers

Answer:

The answer is 2.71 percent

Explanation:

The interest payment is annually.

N(Number of periods) = 12 years

I/Y(Yield to maturity) = ?

PV(present value or market price) = $1,470

PMT( coupon payment) = $73.5 ( [7.35 percent x $1,000)

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 12; PV = -1470 ; PMT = 73.5; FV= $1,000; CPT I/Y= 2.71

Therefore, the Yield-to-maturity of the bond annually is 2.71 percent

In a task assignment situation, in how many different ways can five jobs be assigned to five machines if each job must be assigned to each machine and each machine must be assigned one job?
A. 5
B. 1
C. 3,125
D. 120
E. 25

Answers

Answer: D. 120

Explanation:

The first machine being assigned a job can be assigned one from 5 jobs.

Once that happens, the next machine can only be assigned from any one of 4 jobs.

The next machine, any one of 3 jobs.

The next machine, any one of 2 jobs.

The Last machine gets the last job remaining.

The different ways a job can be assigned therefore are;

= 5 * 4 * 3 * 2 * 1

= 120

Abey Kuruvilla, of Parkside Plumbing, uses 1,210 of a certain spare part that costs $26 for each order, with an annual holding cost of $24. a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places).

Answers

Answer:

Annual demand(D) = 1,210

Ordering cost(S) = $26

Annual holding cost (H) = $24

With the order quantity(Q) = 25,