How the financial stability would be effected

Assignment Help Microeconomics
Reference no: EM13186313

some financial intisutions may take action to remain profitable because of the lower interest rates. Obviously when the interest rates are lower, companies tend to lose money, because it is cheaper for consumers to pay back loans. Financial stability would definately be effected. However, I believe inflation would stay pretty low, even if unemployment were to rise.

Reference no: EM13186313

Questions Cloud

What does the shadow price reflect in a maximization problem : How do the graphical and computer-based methods of solving LP problems differ? In what ways are they the same? Under what circumstances would you prefer to use the graphical approach?
Reduction of aversive stimulus-therapeutic technique : The therapeutic technique by which a phobic stimulus is conditioned to be associated with relaxation rather than anxiety is known as: What strengthens the likelihood of a behavior happening again through the removal or reduction of an aversive stimul..
Depict the correct structure for chloro : Draw the corrct structure(s) for 2-chloro-2,3-dimethylpentane. Show stereochemistry clearly. Explicitly draw all four groups,
How many chairs should be built in order to minimize avarage : Classic Furniture Concepts has determined that when x hundred wooden chairs are built, the average cost per chair is given by C(x) = 0.1x2 0.7x + 1.625, where C(x) is in hundreds of dollars. How many chairs should be built in order to minimize the..
How the financial stability would be effected : some financial intisutions may take action to remain profitable because of the lower interest rates. Obviously when the interest rates are lower, companies tend to lose money, because it is cheaper for consumers to pay back loans. Financial stabil..
Identify the shape of these curves for the function : Identify the shape of these curves for the function below, where c and r are positive constants.
How the organisation has used is-it to address : how the organisation has used IS/IT to address and service its' market, not just on the products it provides.
Calculate the area of idaho : Idaho is shaped like a triangle with a base of approximately 320 miles and a height of approximately 520 miles. Calculate the area of Idaho and write the answer in scientific notation.
Which scale will allow her to make the tallest model : A building is 388 feet tall. For a class project, Kari is to make a scale model of the building to place in the front hall display case. The display case is 17 inches tall. Which scale will allow her to make the tallest model that will fit in the ..

Reviews

Write a Review

Microeconomics Questions & Answers

  Identify what is the major flaw of the comparative advantage

Someone claims that the "bargaining" hypothesis appeared in the literature because of a significant flaw in the "comparative advantage" hypothesis. After you briefly explain what these two hypotheses stand for, identify what..

  Describe the benefits and costs of international trade

Your son is graduating from high school and is about to enter the work force. He has developed a strong curiosity about our economic system and how it works. Because you have a good understanding of basic economics, he has asked you to explain..

  Impacts of innovation and technology

What do you think about the most important determinants that impact demand for banking industry's product or service and determine the impacts of innovation and technology on the cost of production?

  What challenges does the firm face to sustain this practice

market power may produce a level of output greater than its profit maximizing level of output to gain market share and block entry of new firms. What challenges does the firm face to sustain this practice?

  Find best indifference curve and best affordable point

Assume you can only consume good X and Y out of abudget of $120. Your utility function is U = ln(X)+ln(Y ).

  Rise in incomes will affect the demand for computers

Explain how a rise in incomes will affect the demand for computers, describe any assumptions that you have to make to give your answer.

  Do the ability to move first give the employer an advantage

The following represents the potential outcomes of your first salary negotiation after graduation:Assuming this is a sequential move game with the employer moving first, indicate most likely outcome. Does the ability to move first give the employe..

  Negative externalities that arise from the production

Negative externalities that arise from the production of a good;a. cause an increase in the demand for the goodb. cause a decrease in the demand for the goodc. impose costs on third partiesd. bring private costs into equality with social costs.

  Determine real total output

Assume that the aggregate demand curve is P=120 - Q, where P is price level and Q is real output. If the short-run aggregate supply curve

  Define profit-maximizing level of production

The current market price is $7.50. At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should.

  Who aim the first shot

If the average shooter aims at someone, he will hit them half of the time. If the drunk aims at someone, then he will hit them only ten percent of the time. Once someone is hit, they are out of the game, with the winner being whoever is the last r..

  Determining oligopoly and monoplistic competition

Assume that both magazines are owned by the same publishing company that maximizes the combined profits of the magazines. Will the company make the same choice as in the noncooperative game (i.e., owned by different publishing companies)?

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