Effects of an increase in the money supply, International Economics

Assignment Help:

Q. What will be the effects of an increase in the money supply on the interest rate?

Answer: An enhance in the money supply will origins the interest rate to decrease. This must increase investment and possibly consumption of durable goods. The decreases in the interest rate will origins a depreciation of the dollar.


Related Discussions:- Effects of an increase in the money supply

Homeowork 1, Canadian consumers have 50 dollar in come this is eual to the ...

Canadian consumers have 50 dollar in come this is eual to the gross domestic product. they spand 35 dollars on comuser goods (25 on canadian goods annd 10 on imports) they save 8

Terms of trade, what is net barter terms of trade and the effect on its eco...

what is net barter terms of trade and the effect on its economy

International trade, International business involves the management of inte...

International business involves the management of international risk. To minimize risks commercial parties utilize independent guarantees and standby letters of credit. (a)  Dis

calculate the gross and net national product, Given the following hypothet...

Given the following hypothetical data (in millions of naira): 1.    gross private domestic investment        N59 2.    contributors for social insurance           N8 3.    inter

Explain demand for money, Q. Explain why one can write the demand for money...

Q. Explain why one can write the demand for money as follows: Md = P L (R, Y) Answer: The collective money demand is proportional to the price level. Imagine that every prices

Describe the economys short-run equilibrium, Q. Use the fixed exchange rate...

Q. Use the fixed exchange rate DD - AA model to describe the economy's short-run equilibrium.  Then, use the same figure to study an expansionary monetary policy. Show that the pol

Trams of trade, different between her barter terms of trade and net barter ...

different between her barter terms of trade and net barter terms of trade

Trade and costs, how trade lowers the costs of making computer peripherals ...

how trade lowers the costs of making computer peripherals such as mice and keyboards

Write Your Message!

Captcha
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