Short run to interest rate-income-consumption

Assignment Help Business Economics

Reference no: EM131006603

Using the IS-LM model, examine what happens in the short run to interest rate, income, consumption, and investment under the following. Support your answer with the appropriate logic and graphs

1) The central bank decreases the money supply (MS)

2) The government decreases government purchases (G) and taxes (T) by equal amounts

3) A wave of credit-card fraud increases the frequency with which people make transactions in cash

4) A best-seller entitled Retire Rich convinces the public to increase the percentage of their income devoted to saving

Reference no: EM131006603

Questions Cloud

What are some characteristics of the social age : what do you think are some of the most important pieces of information for a professional profile on an enterprise social networking platform ?

The price of tuition at for-profit institutions : According to our discussion in class, the price of tuition at for-profit institutions (such as the University of Phoenix) tend to be much higher than people expect. For-profit institutions produce much better outcomes than public institutions, so the..

Similarities between ethical finance and islamic finance : What are the differences and similarities between ethical finance and Islamic finance? Give examples of ethical finance funds and how they select their investments? I want to have knowledge of the facts and understand the related facts in a broad..

Economic development : What factors do you think are responsible for Africa’s slow economic development? What can the multinationals do to help?

Short run to interest rate-income-consumption : Using the IS-LM model, examine what happens in the short run to interest rate, income, consumption, and investment under the following. Support your answer with the appropriate logic and graphs

Sales promotion could affect your purchase probability : Offer one example of a situation where a sales promotion could affect your purchase probability, purchase quantity, purchase timing, or purchase location.

What price would a second investor pay the first investor : Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2013, for $10,000 of the bonds?

Prepare a report on storm-water management : The location building for the proposed green roof should be different from the sample report. the location building would be any building within Great Toronto Area (GTA) Ontario.

Use supply-and-demand analysis : Use supply-and-demand analysis to answer the following question. This means using Figure 1 below actively (or drawing your own graphs). Assume that supply-and-demand analysis is in fact applicable in all the relevant markets. (a) Assume fertilizer pr..

User Account

All Pages