Why interest -related expenditure ire function is vertical

Assignment Help Microeconomics
Reference no: EM13235553

In a closed (no foreign sector)mixed economy with stable prices if we assume that consumumption and investment spending do not depend on the interest rate,can we conclude that

a. The interest -related expenditure IRE function is vertical?

b. Monetary policy has no effect on real income and output?

Reference no: EM13235553

Questions Cloud

Calculate the necessary amount of charge on the marble : You and a friend have been given the task of designing a display for the Physics building that will demonstrate the strength of the electric force, calculate the necessary amount of charge on the marble for a reasonable ramp angle of 15 degrees
Whether or not to prescribe the drugs for the patients : What would be the advantages and disadvantages of a regulatory system in which , rather than having the FDA merely published its opinions about the safety and efficiency of drugs and the allowed physicians
Derive an expression for x in terms of n : Suppose Q and nQ are charges that are seperated from origin by -L and oL and the origin and that the origin as at a point of electrostatic equilibrium between them
Compare fda approval process with the drug -approval process : How could the incentives facing the people at the FDA be changed to reduce the incidence of Type ii errors Is it possible to compare the FDA approval process with the drug -approval process in other nations
Why interest -related expenditure ire function is vertical : In a closed (no foreign sector)mixed economy with stable prices if we assume that consumumption and investment spending do not depend on the interest rate,can we conclude
What is epefinal - epeinitial : Two particles with charges +5e and -5e are initially very far apart (effectively an infinite distance apart). They are then fixed at positions that are 6.78 x 10-13 m apart
Determine the requirements of the digital fiters : Determine the requirements of the digital fiters needed and design and write the di erence equations for the digital fiters.
Determine probability that annual net cash flow will be -ve : a refresher on how to calculate a riskier investment, when Company A has expected returns of $50,000 and standard diviation of $40,000. Company B has expected returns of $250,000 and standard deviation of $125,000.
Find the ratio ve/vp : An electron and a proton, starting from rest, are accelerated through an electric potential difference of the same magnitude. In the process, Find the ratio ve/vp

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the size of this firms profit or loss

Suppose that the allocatively efficient output level in long-run equilibrium is 210 meals. Is the deadweight loss for this firm greater than or less than $60?

  How to indicate the minimum efficient scale

Industry studies often suggest that firms may have long-run average cost curves that show some output range over which there are economies of scale and a wide range of output over which long-run average cost is constant.

  How to formulate an effective mission statement

A business plan is a written summary of an entrepreneur's proposed venture, its operational and financial details, its marketing opportunities and strategy, and its managers' skills and abilities.The most effective way to communicate the values of ..

  Suspension of international trading and financial activities

Large-scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face the proble..

  How to shape any of interests into a business opportunity

A huge number of successful businesses' such as Apple, The Cheesecake Factory, and E-Bay, were built around the personal passions of their founders. Consider your own personal passions. What do you love to do What are you great at doing

  How the equilibrium price and equilibrium quanity changes

Milk becomes more popular amd better feed increases milk production. how do these events influence demand and supply  describe how the equilibrium price and equilibrium quanity changes.

  What you can do to improve develope your personal brand

consider this topic and converse with your fellow classmates about choice, opportunity cost, and comparative advantage with regards to personal brand in social networking sites and/or associations you might belong to.

  When will company revenue increase

Management attributes the increase in revenues to a 137 percent increase in shipments, despite a 17 percent drop in the average blended selling price of its line of phones. Given this information, is it surprising that the company's revenue increa..

  What output changes would you recommend

The marginal revenue is $3.00. What is the short-run and long-run condition for the monopolist and what output changes would you recommend?

  What is the optimal combination of inputs for firm to employ

Crew Brew produces a popular brand of beer in its mini-brewery located on a small river in Wisconsin. It uses a special formula, combined with the fresh water from the local stream, to produce a drink popular with local folks and tourists who visi..

  What is real wage as determined by price-setting equation

Suppose that the firms markup over costs is 6%, and the wage-setting equation is W = P(1-u+z) where u is the unemployment rate and z is equal to 0.03. What is the real wage as determined by the price-setting equation? What is the natural ..

  Did the monopoly increase barriers to entry?

Discuss the current monopoly to provide a brief overview of the company. How did the monopoly arise? Did the monopoly increase barriers to entry? Does the company behave like a monopoly or more like a competitive firm?

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