Answer the following questions on a piece of paper and submit a picture.
a. In the long run, money is ___________________________.
Show the market for loanable funds with the nominal interest rate on the price axis. Show what will happen (in the long run) if there is an increase in the expected inflation rate. Think carefully about how savers and investors should react to changes in inflation. Keep you answer to part a in mind while considering this.
In the long run, money is neutral which says that changes in money supply affect only nominal variables such as price of good and services, wage rate while do not affect real variables.
If there is an increase in expected inflation rate, people will demand more of funds because they have to repay money which have lower purchasing power or real money. On the other hand, lenders would reduce their supply of loanable funds as they will get back money with lower purchasing power. Both of these factors combined will raise rate of interest from "i0" to "i1" while keep quantity of loanable funds traded at same level of Y0.
Answer the following questions on a piece of paper and submit a picture. a. In the...
Show the market for loanable funds with the nominal interest rate on the price axis. Show what will happen (in the long run) if there is an increase in the expected inflation rate. Think carefully about how savers and investors should react to changes in inflation. Keep you answer to part a in mind while considering this.
please answer all parts on a piece of paper
Exercises: Parity conditions in real markets and financial markets EXERCISE 8 (Fisher effect & Purchasing Power Parity) If expected inflation is 100 percent in Venezuela and the real required return is 5 percent. a) What will the nominal interest rate be according to the Fisher effect? b) What can we expect to happen with the exchange rate of $/Bolivar, taking the different inflation rates into consideration, assuming that USA inflation is...
1. Which of the following is true regarding spending and saving? a. Money that is spent cannot be saved. b. Spending is good for the economy; saving is bad for the economy. c. Spending money on items that are on sale is the same as saving money. d. Saving money and spending the same dollars has become easier with online banking. 2. If savers were to decrease the level of savings in an economy, what would happen in the loanable...
Use the following information for the next 9 questions. You should draw a graph that depicts the situation below and use your picture to answer the questions Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 8%, the growth rate of the velocity of money is 0% and that the real economic growth rate is 5%. Now assume that the...
Please submit the answer to this problem on a separate piece of paper, in submission box. A 121-cm-long, 4.00 g string oscillates in its n = 6 mode with a frequency of 180 Hz and a maximum amplitude of 5.00 mm. Find (a) the wavelength of 1st, 2nd, and 3rd harmonic; (b) the frequency of 1st, 2nd, and 3rd harmonic; (c) the speed of the wave in the string: (a) the tension in the string. Hint: Draw pictures of the...
Use the following information for the next 7 questions. You should draw a graph that depicts the situation below and use your picture to answer the questions Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 7%, the growth rate of the velocity of money is 0% and that the real economic growth rate is 3%. Now assume that there...
Please submit the answer to this problem on a separate piece of paper, in submission box. A solid sphere, a solid disk, and a thin hoop are all released from rest at the top of the incline (ho = 20.0 cm). a) Without doing any calculations, decide which object would be spinning the fastest when it gets the bottom. Explain b) Again, without doing any calculations, decide which object would get to the bottom first. Hint: which one has greater...
Please submit the answer to this problem on a separate piece of paper, in submission box. A solid sphere, a solid disk, and a thin hoop are all released from rest at the top of the incline (ho = 20.0 cm). a) Without doing any calculations, decide which object would be spinning the fastest when it gets to the bottom. Explain b) Again, without doing any calculations, decide which object would get to the bottom first. Hint: which one has...
Please submit the answer to this problem on a separate piece of paper, in submission box. 10.0 mol of argon (monoatomic) gas is introduced to an empty 50-cm container at 20°C. The gas then undergoes an isobaric heating to a temperature of 300°C. a) What is the pressure at which this process happens? b) What is the final volume of gas? c) Show this process on a PV diagram. Make sure you include units and properly label axes. d) What...
ONLY answer if you KNOW it. I am really tired of wrong answers.
Also, I know you are only suppose to ask one question but Ive asked
these questions separately multiple times and it has been wrong (I
am running out of available questions). So please attempt to answer
all of them if possible. Thank you so much!
1.)2.) 2.) 3.)
4.)
An open market purchase of securities by the Federal Reserve
leads to a(n) _____ in the money supply,...