A manufacturer is contemplating a switch from buying to producing a certain part. Setup cost (S) would be the same as ordering cost (S), and the holding cost (H) would be the same for both options. The production rate would be twice as the usage (demand) rate. Compared to the EOQ, the maximum inventory (Imax) would be:

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.