Decline in interest rates in the economy

Assignment Help Microeconomics
Reference no: EM13758021

Draw a supply/demand diagram to model the US stock market (use the value of a stock price index such as the S&P 500 to represent the overall level of stock prices.) Show the effect on stock prices of a decline in interest rates in the economy. (hint: from the view point of those with accumulated savings to invest, interest bearing financial assets such as money market funds and bank certificates of deposit are substitutes for stock market mutual funds....also, from the viewpoint of future corporate sales, lower interest rates mean that customers can more cheaply finance the purchase of goods)

Reference no: EM13758021

Questions Cloud

Issues on the financial accounting standards board : Your supervisor has asked you to research leases and lease structure issues on the Financial Accounting Standards Board (FASB) website, in particular the current practice and thought related to direct financing, sales type, and operating leases.
How does your current understanding of child development : How does your current understanding of child development influence your views? Which arguments or expert opinions do you disagree with?
Required reporting for defined contribution : Write a 700- to 1,050-word executive memo that explains the required reporting for defined contribution, defined benefit, and other postretirement plans. Also include an explanation of what must happen for the two segments to be eliminated. (You d..
Explain why disability should not be used interchangeably : Explain why the following terms should not be used interchangeably: impairment, disability, handicap, and at risk.
Decline in interest rates in the economy : Show the effect on stock prices of a decline in interest rates in the economy. (hint: from the view point of those with accumulated savings to invest, interest bearing financial assets such as money market funds and bank certificates of deposit ar..
Effects of a rise in inflation expectations on t-bill market : Draw a supply/demand diagram of the market for "loanable funds" in the U.S. Use the "interest rate" as the "price" of loanable funds on your diagram.
Different pension plans : You are a controller in a midsized manufacturing company that has acquired 100% of another company. The acquired company includes two segments and two different pension plans. Both of these reporting issues are new to your CEO, and your CEO wants ..
A definition of intranet is a network of an organization : A definition of intranet is a network that is part of an organization. In this case, the intranet would include the e-mail accounts assigned to the teachers and students by the school. For example, using your student e-mail to send e-mails to inst..
Describe conventions and attributes of your selected genre : Explain genre theory and, using the text as a reference, thoroughly describe the conventions and attributes of your selected genre.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Why do most economists dislike these laws

Many states have usury laws, which place a ceiling on interest rates. Why do most economists dislike these laws?

  Explain the connection between i, s

1) If the desired level of investment spending (I) is greater than the level of national savings (S), are net exports (NX) positive, negative, or zero? Explain the connection between I, S, and NX (in words as well as mathematically).

  Describe the importance of euler theorem and assumption of

provide a series of essays on each of the following topics.1. semi-short essay wicksteed made a significant

  What is the difference between the price paid by consumers

What is the difference between the price paid by consumers and the price received by producers? Has the quantity of beer sold increased or decreased?

  Write down the internet branding and marketing plan of 2-3

write an internet branding and marketing plan of 2-3 pages for the hypothetical or existing retail companys case study

  Tissue plasminogen activator

Genentech owns a patent on tissue plasminogen activator (TPA), which is an enzyme that helps the body break down blood clots. TPA is particularly valuable to cardiac patients, since it often allows heart problems to be treated with medication rather ..

  Recognize and explain the main bottleneck in this process

write a 350-word paper based upon the data collected on the process you identified in week one.identify and discuss the

  The us economy has fallen into a recession it is a severe

the u.s. economy has fallen into a recession. it is a severe and deep recession and one that some economic analysts say

  Calculate the change in the banks profits if interest rates

Normal 0 false false false EN-US X-NONE X-NONE Pennyworth National Bank ha..

  Discuss the differential effects of these two policies

Tariffs and quotas can be used to achieve similar ends. In fact, for any given quota, there is an equivalent tariff that will limit imports to exactly the same amount. Still, there are differences between quotas and tariffs.

  What is the utility maximizing or optimization condition

Mary is in equilibrium. The MUa =6, MUb =12, Pa=2, what is the price of b? Zach is in equilibrium. The MUa=2, MUb=8, what is the price of a in terms of the price of b? What is the utility maximizing or optimization condition?

  Draw his budget line with respect to his labor-leisure choic

How would these two changes together affect John's desired health capital - Draw his budget line with respect to his labor-leisure choice.

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