Reduce real interest rates

Assignment Help Business Economics
Reference no: EM131523984

If government decides to release a stimulus package by allocating funds to public initiatives and household, what would happend to the aggregate supply and demand?

Also, if government decides to reduce real interest rates as a part of their monetary policies,what would happen to the aggregate supply and demand?

Please illustrate the movements of the graph, no need to be drawn, explanation is fine.

Reference no: EM131523984

Questions Cloud

Savings rates in the us : Assume that savings rates in the U.S. and these other countries were equal during this period, and assume that technology in the U.S.
What is starbucks performance metrics : What is Starbucks Performance Metrics? What is Starbucks Working Capital Management? What is Starbucks Real Options Valuation?
What proportion of population : What proportion of population is between 20.0 and 25.0 c. What proportion of population is less then 18.0.
What laboratory values are considered abnormal : What laboratory values are considered abnormal? Explain each abnormality and discuss the probable causes from a pathophysiologic perspective.
Reduce real interest rates : Also, if government decides to reduce real interest rates as a part of their monetary policies,what would happen to the aggregate supply and demand?
How does leadership have direct impact upon planning process : How does leadership, and the type of leadership style, have a direct impact upon the planning process for risk-reduction measures within the community?
Calculating real returns and risk premiums : Calculating Returns and Variability. Calculating Real Returns and Risk Premiums.
Calculate the initial and current price : Calculate the initial and current price of this bond if 8 years later you must sell the bond and market interest rates rise from 5.51 to 7.77%.
Describe the cdfs : Assess these fractiles for the following uncertain quantities: 0.05 fractile, 0.25 fractile (first quartile), 0.50 (median), 0.75 fractile (third quartile).

Reviews

Write a Review

Business Economics Questions & Answers

  Qfor each level of output calculate the variable cost vc

q.for each level of output calculate the variable cost vc. for each level of output except zero output calculate the

  What is the arc cross elasticity of demand

Eastern Airlines offers coach seats on its flight from Milwaukee to New York for $250. Sales have averaged 700 per day during the last year. Eastern’s primary competitor (Continental Airlines) cut their prices from $220 to $200. The quality of travel..

  Demand shift to the left-the last firm that entered

Consider s market where there are many firms with different cost structures. If demand shift to the left (decreases), the last firm that entered____.

  Alternate method of assigning costs

An alternate method of assigning costs is activity-based costing. The major activity for the production of both Processor01 and Android01 is component assembly.

  Short-run tradeoff between inflation and unemployment

Explain what causes the shift in the Short-Run tradeoff between inflation and unemployment? Analyze the effects of Tax Cuts, Increasing Government Purchases, and Quantitative Easing using the IS-LM model. Do you believe that all these policies are ef..

  Explain the meaning of a nash equilibrium

Explain the meaning of a Nash equilibrium when rms are competing with respect to price. Why is the equilibrium stable? Why don’t the firms raise prices to the level that maximizes joint prots? What is the DWL in this model?

  Facts of financial markets is that financial intermediaries

One of the basic facts of financial markets is that financial intermediaries, particularly banks, are the most important source of external funds used to finance business. Explain the reasons with few sentences from what we learned in Chapter 8 from ..

  How does the story of long-run equilibrium in industry

In The Wealth of Nations, Adam Smith wrote, "Every individual endeavors to employ his capital so that its produce may be of greatest value. He generally neither intends to promote the public interest, nor knows how much he is promoting it.

  Identical except for their marginal propensity to consume

Consider two closed economies that are identical except for their marginal propensity to consume (MPC). Each economy is in equilibrium with real GDP and aggregate expenditure equal to $100 billion. The first economy's MPC is 0.5. Therefore, its initi..

  Qalthough economists routinely use gross domestic product

q.although economists routinely use gross domestic product gdp and other national income and product statistics in

  Analyze the macroeconomic environment

Describe and analyze the macroeconomic environment. Explaining the economic performance from the data. Explaining what you see in your series. What is the economic growth during 2003-2013 ? What is the role of the series that you collected (in point ..

  Qa brewery is considering two potential production

q.a brewery is considering two potential production investmentsoption a costs an initial 2 million as well as will

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