Decide that the normal level of the interest rate has

Assignment Help Macroeconomics
Reference no: EM13316034

In Keynes’s analysis of the speculative demand for money, what will happen to money demand if people suddenly decide that the normal level of the interest rate has declined? Why?

Reference no: EM13316034

Questions Cloud

What standard deviation would be expected in a distance : A field party is capable of making taping observations with a standard deviation of +,-0.003m per 30m taped length. What standard deviation would be expected in a distance of 120m taped by this party
He wishes to select the savings institution that will give : A friend was left $50,000 by his uncle. He has decided to put it into a savings account for the next year or so. He finds there are varying interest rates at savings institutions
What is the tension in the line to the bottom of the tank : An object is submerged in a water tank and tethered by a line to the bottom of the tank. If the object has a density of 45 kg/cubic meter and a volume of 2.5 cubic meters, what is the tension in the line
What is the nominal annual interest rate : A student bought a $75 used guitar and agreed to pa for it with a single $85 payment at the end of 6 months Assuming semiannual (every 6 months) compounding, what is the nominal annual interest rate? What is the effective interest rate?
Decide that the normal level of the interest rate has : In Keynes’s analysis of the speculative demand for money, what will happen to money demand if people suddenly decide that the normal level of the interest rate has declined? Why?
Implement a program that processes an input file : Implement a program that processes an input file by changing every occurrence of an old string into a new string. (e.g., the usage is: chstr.pl file oldstring newstring, chstr.pl is your program name, file, oldstring and newstring are parameters ..
Many economists are worried that a high level of budget : Many economists are worried that a high level of budget deficits may lead to inflationary monetary policies in the future. Could these budget deficits have an effect on the current rate of inflation?
The more credible the policymakers who pursue an : The more credible the policymakers who pursue an anti-inflation policy, the more successful that policy will be. Is this statement true, false, or uncertain? Explain your answer.
Compute the acceleration of the box : A student decides to move a box of books into her dormitory room by pulling on a rope attached to the box.  Find the acceleration of the box

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain how has the introduction of females

Explain how has the introduction of females also minorities in the corporate structure impacted the supply of labor and the economy.

  Descriptive analysis of how decontrol of price

Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.

  Computing economic cost

What is your economic cost of buying a ticket? What is your economic cost of attending the game (once you already bought the ticket)?

  What level of excess reserves does the bank have

Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is 10 percent. Households deposit $5,000 in currency into the bank and that currency is added to reserves. What level of excess reserves does the bank..

  Discuss the incomes and expenditures in terms of the keynesi

Discuss the incomes and expenditures in terms of the Keynesian model. You can agree and/or disagree with the Keynesian assumptions.

  What is the overall economic assessment being made

The Update of the June 4th, 2014 Beige Book was prepared at the Federal Reserve Bank of New York. The information is collected 6 weeks prior to each anticipated Federal Open Market Committee (FOMC)

  Demand for monopolist break-even point

A perfect competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q^2-What is the lowest price at which the firm can break even?

  Economic efficiency and externality related problem

Use the data in the table to the right to answer the following questions. What is the external cost per unit of production? What level is produced if there is no regulation of the externality?

  Stabilization policy recommendations of monetarists

Describe briefly the reasons why the following transactions would  or would not be included in GNP and  compare and contrast stabilization policy recommendations of  monetarists and activists.

  Cause of yield curve

Explain how each of the following would cause the yield curve to shift if between now and next year:

  How does imposing rent controls affect the number of housing

What alternative policy would you propose to make plenty of housing available to low-income families that would not be subject to the problems of rent controls? Illustrate the effects on supply and demand from part 1.

  Which country has the comparative advantage in sippy cups

In Narnia, 1 binky can be produced with 2 workers and 1 sippy cup can be produced with 0.25 workers. In Bedrock, 1 binky can be produced with 1 worker and 1 sippy cup can be produced with 0.50 workers. a. What is the opportunity cost of producing ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd