Why the previous interest rate is no longer sustainable

Assignment Help Microeconomics
Reference no: EM13205331

What is the basic determinant of (a) the strength of the transactions demand for money (the location of the transactions demand for money curve) and (B) the amount of money demanded for assets, given a particular asset demand for money curve? How is the equilibrium interest rate in the market for money determined? Use a graph to show the impact of an increase in the total demand for money on the equilibrium interest rate (no changes in money supply) Use your general knowledge of equilibrium prices to explain why the previous interest rate is no longer sustainable.

Reference no: EM13205331

Questions Cloud

Calculate the minimum pre-tax annual earnings : Calculate the minimum pre-tax annual earnings generated by this machine to justify its purchase and what is the maximum price that Gemini should pay for the machine?
Offer the name of the major alkene : Provide the name of the major alkene product that results when (2S,3S)-2-bromo-3-methylpentane is treated with sodium methoxide
What length is the hypotenuse of a right angled triangle : what length is the hypotenuse of a right angled triangle if the base is 123inches,the short side is 114inches and the angle opposite the right angle is 41degrees.
Moral imperatives-social conventions and matters of personal : What experiences help a preschooler distinguish between moral imperatives, social conventions, and matters of personal choice?
Why the previous interest rate is no longer sustainable : What is the basic determinant of (a) the strength of the transactions demand for money (the location of the transactions demand for money curve) and (B) the amount of money demanded for assets, given a particular asset demand for money curve
State what is the concentration of ag : Which silver salt will precipitate first? Show calculations to support your answer. What is the concentration of Ag+ when the first precipitate begins to form?
Why the trinomial is or is not a special case : Explain why the trinomial is or is not a special case and describe your process for factoring it completely. Be sure to use three or more sentences in your explanation. If the polynomial can be factored, then factor it showing your work.
State the balences in the lab can weigh a maximum : The balences in the lab can weigh a maximum of 220.000 g at once. if a beaker has a mass of 86.4329 g, what is the maximum volum of water
Calculate vipsanas average fixed cost per day : Vipsana's Gyro House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a rent of $20 per day. Answer questions 17-10 accordingly.

Reviews

Write a Review

Microeconomics Questions & Answers

  Why might you expect to see flat royalty payments

Is your explanation consistent with the fact that franchised tutoring services often charge a fixed royalty per student enrolled?

  What is the expected value of each lottery

utility if a function of income (I), given by: \(U = 101\) as long as I is less than or equal to 300. If I is greater than 300, your utility is a constant equal to 3,000. Suppose you have a choice between having an income of 300 with ce..

  Describe the four supply factors of economic growth

Which of the Supply Factors do YOU believe will be most important for the future growth of the U.S. economy? WHY? Briefly explain what we mean by labor productivity. What is its most important determinant?

  Deriving average costs for different levels of output

Derive the average cost of producing 100,000, 200,000, 300,000, and 400,000 devices per year with plant A. (For outputs exceeding the capacity of a single plant, assume that more than one plant of this type is built.)

  Determining present value of electrical power costs

Electrical power costs at a mine are estimated to be $850,000 in each of the next 12 years. Find out the present value of this expenditure at an interest rate of 11%.

  Long run costs of the various levels of production

Using the results obtained above, derive a table for the long run costs of the various levels of production of sweaters (10, 20, 30, 40). The table should show: quantity, total cost, average cost and marginal cost.

  Explain if outsourcing will continue for u.s. companies

Do you think that nearshoring or outsourcing will continue for U.S. companies? B. Identify a legal job that you would not accept on moral grounds? C. Identify a U.S. company that operates in a foreign country whose assets were confiscated. Explain..

  Find the demand curve for a perfectly competitive firm

Which of the following factors would most likely explain why a U.S. company would choose to operate in the U.S. despite much lower wages in Mexico.If a monopolist is earning profits, then price is greater than average total cost.

  Discuss the short-run and long-run costs and benefits

The Fed's decided to maintain its low interest-rate target in the face of a rightward shift of theAD curve in the late 1960s which led to an inflationary equilibrium. Discuss the short-run and long-run costs and benefits of the Fed's other two op..

  Explain the short term and long term effects

A major breakthrough that allows for on-site generation of electricity for an investment in the generating capacity but after that essentially a zero variable cost of electricity.

  Explain a two time period budget equation

What did you end up doing? Explain using a two time period budget equation and congress must be happy with your findings. You are sitting at your desk starring at your very first bonus.

  The amendments to the constitution

Please avoid plagiarism, and write your words based on other people's facts. To get full points for this post, you need to write at least three facts about the part of the Constitution, and the why you think those facts shape the modern business..

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