The Effect on Business of the Crowding-Out Effect in the Short

question 199

Short Answer

The effect on business of the crowding-out effect in the short run would be reflected by _____.

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Definitions:

Discount Factors

A multiplicative factor used to discount future cash flows back to their present value.

Present Value

The present-day assessment of a future sum of money or cash flow series, after considering a specified rate of return.

Cash Flows

The net amount of cash being transferred into and out of a business.

Compounded Monthly

Compounded monthly refers to the process of calculating interest on an investment or loan by adding the interest earned to the principal, so that each subsequent interest calculation is made on a larger base.