This topic contains a solution. Click here to go to the answer

Author Question: What is the crowding-out effect and how does it work? What will be an ideal ... (Read 24 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
What is the crowding-out effect and how does it work?
 
  What will be an ideal response?

Question 2

What is the Herfindahl-Hirschman index?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tandmlomax84

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

The crowding-out effect refers to the decrease in investment that occurs when the government budget deficit increases. An increase in the government budget deficit increases the demand for loanable funds. As a result the real interest rate rises. The rise in the real interest rate decreasescrowds outinvestment.

Answer to Question 2

The Herfindahl-Hirschman index is a measure of industry concentration that uses data on individual firms' market shares. Specifically, the index is the sum of the squares of the market shares of each firm in the industry. The index is used to determine whether or not a proposed merger will be challenged by the government.




pragya sharda

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


samiel-sayed

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

For a complete list of videos, visit our video library