Direction should you expect the interest rate to change

Assignment Help Business Economics
Reference no: EM13984229

An exogenous event has left the interest rate in a position above the LM curve. Describe the disequilibrium in the financial market. In which direction should you expect the interest rate to change?

Reference no: EM13984229

Questions Cloud

Oligopoly models differ substantially : Price outcomes of the 5 oligopoly models differ substantially. Which models produces the lowest and highest total profits (all firms combined)? What are the predicted prices? Provide aviation industry examples of routes or markets that might approxim..
Two types of movie-arty and popcorn : Suppose there are two types of movie: Arty (A), and Popcorn (P). These films may be either Decent (D) or Terrible (T). 35% of all movies are Arty. 20% of all movies are both Arty and Decent. If a film is a Popcorn, there is a 75% chance that it is Te..
What would you reccommend this firm do to maximize profits : A firm is currently producing 80 units of output. At this level of output produced, P=150 and ATC=120. Also assume that MC=130 and MR is constant at all output levels and equal to 150. Is this firm making profits? If so, what are these profits? Is th..
Endogenous variable and marginal revenue product of labour : Provide brief definitions of each of the following terms and expressions-Crowding out, Endogenous variable, Marginal revenue product of labour, Real exchange rate.
Direction should you expect the interest rate to change : An exogenous event has left the interest rate in a position above the LM curve. Describe the disequilibrium in the financial market. In which direction should you expect the interest rate to change?
Negative function of the nominal interest rate : We have learned that the demand for money is a negative function of the nominal interest rate. Explain why it is the nominal and not the real interest rate that matters.
Is the firm maximizing profits producing : If the firm produces 60 units of output, what are profits or losses for this firm? Is the firm maximizing profits producing Q=60? If not, what is the profit maximizing level of output produced? What are maximum profits?
Corporation is based on interpersonal relationships : Do you agree or disagree with the following statement: "The rational model of the organization assumes that the Corporation is based on consent, while the political model assumes it is based on power, and the carrying model assumes the Corporation is..
Level of output produced : A firm is currently producing 40 units of output. At this level of output produced: Is this firm making profits or losses? How much? Are they maximum profits? Why?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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