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Q: What is the term for the situation where more money is available for borrowing and investment?
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Which best describes the economic effect that results when the government increases interest rates?

Borrowing money becomes more expensive and there is less investment in production.


What are the advantages of borrowing money?

what are the advantages of borrowing money


What best describes the economic effect that results when the government increase interest rates and restricts the lending of money?

Borrowing money becomes more expensive and there is less investment in production.


The crowding-out effect of expansionary fiscal policy suggests that?

The crowding-out effect limits investment in the private sector. The crowding-out effect occurs when the government runs a deficit and must borrow money from the loanable funds market. By borrowing money, they decrease the amount of savings available in the market and the real interest rate rises. The increase in the real interest rate lowers investment by businesses.


The cost of borrowing money is called the?

The cost of borrowing money is called interest.


What is the difference between finance and investment?

An investment is to spend money to buy some permanent good, either for private use or to use as a tool to earn more money. The property you buy is also often called an investment. Finance is the way you get the money before you spend it. You can finance something by saving until you have gathered enough money, by borrowing money, by leasing, by selling some property you already have, and many other ways.


Why is the united states borrowing money from the nation for wars?

If you mean "why is the U.S. borrowing money from the U.N.", the answer is because the U.S. doesn't have enough of its own. If you mean "why is the U.S. borrowing money from the country" then the answer would be that the U.S. is not borrowing its own money, its just using it.


What the advantages about borrowing money?

you get money


What do you call a charge for borrowing money?

a debtor with a dick


Where can you find out about borrowing money?

There are multiple places one can find out about borrowing money. It depends if one is attempting to research borrowing money from a bank, a money lender, or another source. If borrowing from a bank, then it makes sense to go straight to the bank for the information. The same goes for a money lender.


What are characteristics of savings bonds?

it help us in critical situation after selling that bonds we can return our investment money.


Are business money market accounts a good investment?

Yes, business money market accounts are a good, safe investment. While the rates will not be very high, you will not be placing your money in a risky situation. MMA accounts should not be seen as an investment. They are mainly a place to keep cash liquid.