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How would the following influence the growth rates of theM1 and M2 money supply figures over time? a. an increase in the quantity of U.S. currency held overseas
b. a shift of funds from interest-earning checking deposits to money market mutual funds.
c. a reduction in the holdings of currency by the general public because debit cards have become more popular and widely accepted.
d. the shift of funds from money market mutual funds into stock and bond mutual because the fees to invest in the latter have declined.
Q. Nominal interest rate and expected inflation? When we have inflation, we can't, of course, presume that expected inflation is zero. So real interest rate will no longer be e
give and explain national income variation
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations. The price of input A decreases.
Foreign exchange risk is the level of uncertainty that a company must handle for changes in foreign exchange rates that will unfavourably affect the money the company receives for
Furthermore it can be seen that there are interesting relationships between the remaining variables. Firstly, at the 95% significance level it can be seen that interest rates Grang
Consider a market where supply and demand are given by QXS = -12 + PX and QXd = 78 - 2PX. Suppose the government imposes a price floor of $35, and agrees to purchase any and all un
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Explain clearly the liquidity preference theory of interest propounded by j.m.keynes
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