What economists refer to as crowding-out

Assignment Help Macroeconomics
Reference no: EM132181597

Define and explain what economists refer to as "crowding-out." Use the following data to graphically illustrate what "crowding-out" looks like using the loanable funds market.  Explain your findings.

Before Stimulus

Government Borrowing = $ 0

Savings = $ 250

Investment = $ 250

Interest Rate = 5%

After Stimulus

Government Borrowing = $ 100

Savings = $ 300

Investment = $ 200

Interest Rate = 6%

Reference no: EM132181597

Questions Cloud

What is the total impact on spending : If the marginal propensity to consume (MPC) equals 0.75 and the government increases spending by $200 billion, what is the total impact on spending?
Explain your decision and your reasoning : The "You Decide" assignment presents a difficult and painful dilemma, with you in an imagined professional role. Go through the You Decide presentation.
Calculate how much the bank must keep as required : If you deposit $8,000 in a bank, calculate how much the bank must keep as required reserves and how much it can loan out if the required reserve ratio was 5
How we arrive at a new equilibrium : Discuss the steps that causes shifts in AD and AS and how we arrive at a new equilibrium.
What economists refer to as crowding-out : Define and explain what economists refer to as "crowding-out." Use the following data to graphically illustrate what "crowding-out"
Evaluate international experience of nestle : Evaluate international experience of Nestle's, by conducting SWOT analysis.
Fee simple absolute and fee simple defeasible : What is the difference between a Fee Simple Absolute and a Fee Simple Defeasible?
What damage can a virus do to computer system : What is a computer virus and what damage can a virus do to a computer system?
Analyze the possible strategies course of actions : Analyze the possible strategies “course of actions” that Nestlé’s may follow to counter the crises which faced in the case above.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Government interventions in the economy

Create an argument for or against the passage of such a law based on your conception of the ideas on the optimum size of government and on government interventions in the economy (Social Security is an intervention in the economy).

  Explain why does the government support public

Explain why does the government support public education when the private sector also provides this service.

  Increase access to health care

The Affordable Care Act is expected to help increase access to health care. Health insurance exchanges will be an important part of that. Most people get health insurance through their employers.

  Utilizing an appropriate result in higher employment

Utilizing an appropriate diagram, show and explain briefly how a rise in the minimum wage could result in higher employment

  1 are the following statements true or false explain in

1. are the following statements true or false? explain in each case.a. two countries can achieve gains from trade even

  Calculate the expenditure multiplier

What would the government surplus/deficit be, what would the trade balance be and what changes would occur if G were increased to $941?

  How can this information be presented graphically

Where +Ig determine the equilibrium level of income (Y). Also, determine at equilibrium the total amount of consumption, saving and investment. For this economy, C= 50 + .75Y and How can this information be presented graphically

  Many people believe that congress will eventually have to

Many people believe that Congress will eventually have to reduce Social Security benefits in order to reduce the budget deficit. Although most of the changes would not take place until later, assume for the purpose of this problem that Social Securit..

  Justify the extra investment

Spending $1,500 more today for a hybrid engine rather than a gasoline engine will result in annual fuel savings of $300. How many years must this savings continue in order to justify the extra investment if money is worth 10% per year, compounded ..

  Perfect competitors or price takers

Since under price leadership by the dominant firm, the firms in the industry following the leader behave as perfect competitors or price takers by always producing where the price set by the leader equals the sum of their marginal cost curves, the..

  Easily made and new solutions

Create a dynamic spreadsheet that not only answers the question of which option is best over a specific time frame, but is also flexible such that changes in the values of variables can be easily made and new solutions provided. The scenario is th..

  How investment tax break can affect investment

Explain using macro theory how investment tax break can affect investment, producticities of labor and capital and income.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd