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Explain about the short term and long term interest rate in money demand.
The Opportunity Cost of Holding Money Demand:
a. Short-term interest rates
Rates onto assets which come due in less than six-months.
These rates tend to shift together due to basic supply and demand. What is the reason? Investors will shift their money out of any short-term financial asset which offers a lower than average interest rate.
b. Long-term interest rates
Rates onto assets which come due into more than six-months.
Explain the purposes economists disagree and using models of economics. Using Models of Economics: a. Positive economics b. Normative economics A forecast is an easy p
definition, argument to protectionism and argument against protectionisms
Write a one paragraph summary and three paragraphs that take the information in the article and relate it specifically to the circular flow model and the supply and demand curves.
#question. BANK Z (@ 10% RR) ASSETS LIABILITIES RR: K200,000 Deposits : K2,000,000 ER : K1,800,000 You are given the above Balance sheet for Bank Z as
What causes a supply curve to shift? a. Changes into Input Prices An input is a good which is used to generate another good. b. Changes into Technology c. Chang
Reducing the budget deficit by cutting government spending could conceivably: A. increase income if interest rates rise enough and government spending is more productive than priva
Suppose you serve on an environmental policy planning board for the federal government. Your task is to propose a policy initiative aimed at reducing urban air pollution, using the
working of static and dynamic multiplier in consumption function
multiplier static and dynamic
Discuss what policy changes he might be likely to propose with respect the issue that you identified as one about which he might be concerned.
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