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 55 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
YES! Correct, THANKS for helping me on my review


yeungji

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

For a complete list of videos, visit our video library