Answer to Question 1
Rising government expenditures leads to more government borrowing, and such borrowing can soak up resources that would otherwise have been used by households and firms. Some economists believe that rising government expenditure displaces private economic activity like consumption and investment. This implies that employment increases by less than it would have otherwise increased.
Answer to Question 2
The three functions that banks perform as financial intermediaries are:
a. Banks identify good investment options.
b. Banks transform short-term liabilities like deposits, into long-term investments.
c. Banks transfer risk from depositors to the bank's stockholders and, in some cases, to the government.
A revised animal phylogeny based on molecular data of SSU rRNA
environmental policy
Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
How lateral inhibition produces contrast enhancement. (Based on Ratliff, 1972.)
Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ...
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.