From: owner-ammf-digest@smoe.org (alt.music.moxy-fruvous digest) To: ammf-digest@smoe.org Subject: alt.music.moxy-fruvous digest V14 #5273 Reply-To: ammf@fruvous.com Sender: owner-ammf-digest@smoe.org Errors-To: owner-ammf-digest@smoe.org Precedence: bulk alt.music.moxy-fruvous digest Friday, November 6 2020 Volume 14 : Number 5273 Today's Subjects: ----------------- High-speed Internet connection quickly and securely wherever you go. ["Wi] ---------------------------------------------------------------------- Date: Fri, 6 Nov 2020 07:50:29 -0500 From: "WiFi Device" Subject: High-speed Internet connection quickly and securely wherever you go. High-speed Internet connection quickly and securely wherever you go. http://bpbalanceinfo.buzz/9lbBRrdLCQh-KiHyZ99_2UW-dyDRdP9jloPeKck9jgR2EI54 http://bpbalanceinfo.buzz/fj5M3LKpAOLVgUYah77y6SjmyoP6M8QofCRc8tIntajxAql9 The extent to which crowding out occurs depends on the economic situation. If the economy is at capacity or full employment, then the government suddenly increasing its budget deficit (e.g., via stimulus programs) could create competition with the private sector for scarce funds available for investment, resulting in an increase in interest rates and reduced private investment or consumption. Thus the effect of the stimulus is offset by the effect of crowding out. On the other hand, if the economy is below capacity and there is a surplus of funds available for investment, an increase in the government's deficit does not result in competition with the private sector. In this scenario, the stimulus program would be much more effective. In sum, changing the government's budget deficit has a stronger impact on GDP when the economy is below capacity. In the aftermath of the 2008 subprime mortgage crisis, the U.S. economy remained well below capacity and there was a large surplus of funds available for investment, so increasing the budget deficit put funds to use that would otherwise have been idle. The macroeconomic theory behind crowding out provides some useful intuition. What happens is that an increase in the demand for loanable funds by the government (e.g. due to a deficit) shifts the loanable funds demand curve rightwards and upwards, increasing the real interest rate. A higher real interest rate increases the opportunity cost of borrowing money, decreasing the amount of interest-sensitive expenditures such as investment and consumption. Thus, the government has "crowded out" investment. The IS curve moves to the right, causing higher interest rates (i) and expansion in the "real" economy (real GDP, or Y). What factors determine how much crowding out takes place? The extent to which interest rate adjustments dampen the output expansion induced by increased government spending is determined by: Income increases more than interest rates increase if the LM (Liquidity preferencebMoney supply) curve is flatter. Income increases less than interest rates increase if the IS (InvestmentbSaving) curve is flatter. ------------------------------ End of alt.music.moxy-fruvous digest V14 #5273 **********************************************