How will the is curve be affected

Assignment Help Econometrics
Reference no: EM131136534

It is possible that the interest rate might affect consumption spending. An increase in the interest rate could, in principle, lead to increases in saving and therefore a reduction in consumption, given the level of income. Suppose that consumption is, in fact, reduced by an increase in the interest rate. How will the IS curve be affected?

Reference no: EM131136534

Questions Cloud

How does an increase in the tax rate affect the is curve : How does the increase affect the equilibrium interest rate?
Child development class : Many of these posts are going to ask for personal reflections.  Please don't share anything that you are uncomfortable sharing.  And just as importantly, remember to be very respectful with your replies.
Determine the annual cost monthly cost and burden markup : Determine the annual cost, monthly cost, and burden markup for a salaried employee given the following information. Assume the employee takes full advantage of the 401(k) benefit.
How do individuals respond to the campaign : Discuss the mass media impacts that are related to your chosen product and the advertising campaign. Examine the campaign from at least 2 theories, research approaches, or perspectives. Also, include responses to the following questions in your d..
How will the is curve be affected : Suppose that consumption is, in fact, reduced by an increase in the interest rate. How will the IS curve be affected?
Boba rebear and salty green paper : The day Ying Ying started preschool he was only 3 and very scared. He didn't know a single word of English. He needed open-heart surgery in an English-speaking hospital, and his doctors urgently needed him to attend preschool to learn some English..
Under what circumstances might the lm curve be horizontal : Why does a horizontal LM curve imply that fiscal policy has the same effects on the economy as those derived in Chapter 9 ?
Determine the annual cost average hourly cost and burden : Determine the annual cost, average hourly cost, and burden markup of an hourly employee given the following information. Assume the employee takes full advantage of the 401(k) benefit.
What types of offers or incentives are provided to encourage : Select two different products, such as cameras, camping gear, running shoes or skateboards, and visit the Web sites of at least three different companies who sell these products. Compare and contrast the Web sites. How easily can you locate the st..

Reviews

Write a Review

Econometrics Questions & Answers

  Explanation of yield curve

The following statement was released through FOMC following recent meeting on March 21. The Group, although hopeful for a future of moderate growth with moderating inflation,

  What is the shape of the indifference curves

For which pair of goods would you observe the greatest substitution effect if the relative prices of the two goods were to change?

  Calculate the cumulative loss of output for years

Natural real GDP grows by 3 percent per year over the next five years, but then grows by 4 percent in the second year, 5.5 percent in the third year, 4.2 percent in the fourth year, and 3.5 percent in the fifth year. Calculate the cumulative loss..

  What is the long run equilibrium number of firms

All cheese manufacturers have the cost function C=Q^2+9, while demand for cheese is given by Qd=120-P. The long run equilibrium number of firms is

  What is the break even price

what is the break even price What is the shut-down price What if cable was currently $70.00 and was lowered to $40.0, how large is the price effect How large would be the quantity effect be What is the profit maximizing qunatity and price for cabl..

  Determine opportunity cost of delivering an extra pizza

The comparative advantage for pizza production belongs to __________ and the comparative advantage for pizza delivery belongs to __________. Based on their comparative advantages, Pat should specialize in _______ while Corey should specialize in ____..

  What is the minimum amount that the o&gs

Suppose that the inverse demand for shale gas is given by p = 400 - 2q. The private marginal cost of producing shale gas is PMC = 100 + q. Suppose that in order to produce shale gas at the PMC given above, the oil and gas (O&G) companies (that pro..

  How do your answers differ

Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 500 and $50 as the denominator for percentage change calculations. (This calculation funds finds the arc elasticity.)

  Does either individual have a comparative advantage

The following numbers measure the tradeoff between grades and income: Total Hours Hours Hours Studying GPA Working Income 60 60 4.0 0 $ 0 60 40 3.0 20 $100 60 30 2.0 30 $150 60 10 1.0 50 $250 60 0 0.0 60 $300 Total Hours Hours Hours Studying GPA

  What does imply for the elasticity of demand for cigarette

Because of a legal settlement over state health care claims, in 1999 the U.S. tobacco companies had to raise the average price of a pack of cigarettes from $1.95 to $2.45. The decline in cigarette sales was estimated at 8 percent.

  Are any of estimated coefficients not statistically differen

The Klein Corporation's marketing department, using regression analysis, estimates the firm's demand function, the result being Q = -104 - 2.1P + 3.2I + 1.5A + 1.6Z R2 = 0.89 Sample = 200 observations where Q is the quantity demanded, P is the price,..

  Calculate the equilibrium price and quantity of good x

a) Calculate the equilibrium price and quantity, and show them on a diagram. b) Assuming a price higher than the equilibrium price, anddetermine the excess supply.

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