Question

Question 25 of the expected inftantionate rises from when the on e the Fisher etects that the nomine interest rate would not change Question 26 If the ce r ves to depositati decreases and the monetary unchanged the value of the money multiplier wil D estion 27 force, and the p o rtio which of the following expression best describe even investment in the Slow growth model with labor force growth the depreciation The main product of the

Answer 1

25> d rise to 6%

Since Fisher effect says, norminal interest rate=inflation rate+real interest rate, a 2% rise in inflation will be echoed in nominal interest.

26> It means the ratio of deposit and reserve is higher now. So, there will be higher money supply and money multiplier is also high

So, a is correct

27> (d+n)*k is the correct answer

The reason is this is minimum level of investment required to keep the capital stock constant.

28> supply, supply

Since both of them are marginal product, they can only be captured by supply curves.