Business, 01.12.2020 02:10 kingalex7575

Suppose that in a country politicians feel that interest rates are too high and they advocate a greater rate of growth of the money supply to decrease the interest rate. Figure (a) illustrates the effect of an increased rate of money supply growth at time period 0.
Figures (b) and (c) illustrate the effect of an increased rate of money supply growth at time period T0.
i) If a decline in interest rates is desired, in which case (a, b or c) an increase in money supply growth should be called for? Explain, why?
ii) In which case (a, b or c) a decrease in money growth is appropriate to decrease the interest rate immediately? Explain, why?
iii) If the policymakers care more about the low interest rates in the long-run, in which case (a, b or c) a decrease in money growth is appropriate? Explain, why?

Suppose that in a country politicians feel that interest rates are too high and they advocate a gre

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 04:10

What is the difference between secure bonds and naked bonds?

Answers: 1

Answer

Business, 22.06.2019 04:40

Select the correct answerwhat is the responsibility of each of the twelve federal reserve's banks in their districts? a.they set the prime rateob.they monitor functioning of banks in their through onsite and offsite reviewsc.they assess taxes in their destnictd.they write fiscal policies

Answers: 1

Answer

Business, 22.06.2019 06:30

If a team of three workers, each making the u.s. federal minimum wage, produced these 12 rugs, what would the total labor cost be? don't forget that these workers would be working overtime.

Answers: 3

Answer

Business, 22.06.2019 10:00

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?

Answers: 1

Answer

You know the right answer?

Suppose that in a country politicians feel that interest rates are too high and they advocate a grea...

Questions