Question

Describe (you must provide a drawing with axes labeled and equilibrium identified along with a short...

Describe (you must provide a drawing with axes labeled and equilibrium identified along with a short explanation) what happens to the equilibrium interest rate when:

(i) inflation is expected to decrease

(ii) the stock market crashes

(iii) government deficit goes down

(iv) money supply decreases

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
2. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled...
2. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. The economy of Newland is in short-run macroeconomic equilibrium. The current real output is $400 billion, and the full employment output is $500 billion. The marginal propensity to consume is 0.8. (a) Is...
1. In the short-run IS-LM model with income taxation, taxes are given by ?=? +??. Suppose...
1. In the short-run IS-LM model with income taxation, taxes are given by ?=? +??. Suppose that MPC = 0.75 and the marginal tax rate ?=0.2. Then, when ? decreases by 1000, then for any given interest rate, the IS curve shifts: Select one: a. to the left by 1000. b. to the right by 3000. c. to the right by 3750 d. to the right by 1875. 2. Suppose that the adult population in an economy is 28 million,...
6) Let’s try to understand the long-run and short-run implications of monetary policy issues. Let’s assume...
6) Let’s try to understand the long-run and short-run implications of monetary policy issues. Let’s assume inflation is currently 2% and that monetary policy has an inflation targeting rule that makes desired (targeted) inflation also 2%. Finally, suppose the equilibrium real interest rate in the economy is 1% and that “beta” in the Phillips curve is 1.2. a) In the long-run, the output gap should be 0% and there should be no shocks to inflation. In that situation what will...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run Phillips curve will shift left. the short-run Phillips curve will shift right. t here will be a movement to the right along the short-run Phillips curve. there will be a movement to the left along the short-run Phillips curve. the long-run Phillips curve will shift right. 2) In the long run, the Phillips Curve shows that the natural rate of unemployment is independent of...
Principles of Macroeconomics Q.1 In the short run, firms expand their production when the price level...
Principles of Macroeconomics Q.1 In the short run, firms expand their production when the price level rises because A.the higher prices allow the firm to hire more workers by offering higher wages, thereby increasing productivity and profits. B. each firm must keep its production up to the level of its rivals, and some firms will expand production as the price level increases. C.firms can increase their profits by increasing their maintenance. D.the money wage rate remains constant so the higher...
Now suppose that the “Avocados from Mexico” trade group airs a wildly successful commercial for avocado...
Now suppose that the “Avocados from Mexico” trade group airs a wildly successful commercial for avocado toast during the Super Bowl, and it goes viral. Explain what happens to the following quantities after this ad campaign. Assume the US border tax is in place before and after the commercial, and that the US corporate tax is lowered to 21% before and after the commercial. When you give each answer, briefly explain why. Some of these are ambiguous, so in order...
36. In the event of inflation, what is the effect on a two income family whose...
36. In the event of inflation, what is the effect on a two income family whose major asset is a house financed by a fixed rate mortgage? A not hurt by inflation B hurt by inflation 35. A telephone receptionist loses his job when a computerized voice mail system is installed at his office. He is _______________. A structurally unemployed B frictionally unemployed C cyclically unemployed D seasonally unemployed 34. The policy made by the Federal Reserve to regulate the...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a balanced budget B. maximum​ employment, stable​ prices, and moderate​ long-term interest rates C. a stable U.S. dollar on foreign exchange markets and moderate​ long-term and​ short-term interest rates D. an economic environment in which investment in U.S. stock and money markets is encouraged The Federal Reserve Act says that the Fed must use​ ______ to achieve its objectives. A. bank reserves B. commercial banks...
Closed book and closed notes. 3. Basic Calculators are permitted. 4. Read all instructions and questions...
Closed book and closed notes. 3. Basic Calculators are permitted. 4. Read all instructions and questions carefully. 5. Show all your work. 6. Please place your Coquitlam College Identification Card face up and visible on your desk. 7. Electronic devices including cellular phones must be turned off and put away during the exam. 8. Any student who has a cell phone or other unauthorized electronic device (i.e. laptop, and et cetera.) on their person or around their desk during this...
MICRO Economics ASSIGNMENT Total marks= 20 Answer the below questions. 1. The economy of the university...
MICRO Economics ASSIGNMENT Total marks= 20 Answer the below questions. 1. The economy of the university town of Avicenna produces two and only two commodities: yoga lessons, and triple lattes. The economy is able to produce any of the following combinations of yoga and lattes per day: CLO 1 [4 MARKS] Daily Production in Avicenna Combination Yoga Lessons Triple Lattes A 5000 0 B 4000 9000 C 3000 16000 D 2000 21000 E 1000 24000 F 0 25000 a) Using...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT