User Account

All Pages

What is the effect of this easy money policy on net exports

Assignment Help Macroeconomics
Reference no: EM133461206

Question: The official interest rate in Australia has been at a record low of 1.5% since August 2016. This is even lower than the rate of 3% which applied during the Global Financial Crisis in 2009.

(i) What will this 'easy money' policy do to household consumption and business investment decisions? Explain your answer. 

(ii) What is the effect of this 'easy money' policy on net exports? Explain.

(iii) Show this 'easy money' policy on a correctly labelled AD/SRAS/LRAS diagram

Reference no: EM133461206

Questions Cloud

Explain your why and what interests you about the problem : Explain your WHY and what interests you about the problem you want to solve. What factor(s) in What Makes A Good Case Study are relevant to you?
What are any four costs of unemployment : What are any four costs of unemployment? Explain how a relative increase in New Zealand's interest rate will impact the Australian dollar, and Australia
Illustrate the economy of country z on a fully labeled : Illustrate the economy of Country Z on a fully labeled production possibilities curve, assuming increasing opportunity cost. Label a point where the economy
How will we raise awareness of our products and services : MN5W50QA Creating a Winning Business, London Metropolitan University - How will we raise awareness of our products and services with our target customer segment
What is the effect of this easy money policy on net exports : What will this 'easy money' policy do to household consumption and business investment decisions? Explain your answer. What is the effect of this 'easy
Identify effect of policy undertarken by the reserve bank : identify the effect of the policy undertarken by the reserve bank of australia. strarting from a long-run equilibrium , use the dynamic aggregate demand
Mental health conditions : Some have touched upon the importance of making sure that mental health conditions are also being taken into consideration during sentencing
Explain how learning about transnational crimes : Explain how learning about transnational crimes will be of value in your future learning endeavors in the criminal justice field.
Explain the weaknesses of the liberal approach for creating : Explain the weaknesses of the liberal approach for creating diversity and changein education and organizationsin the UK? Provide some examples

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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