Homework Answers
Since investment by firm is done on the plant and machinary for production of goods and services. When there is an improvement in the expectation for future sales, then it will be profitabl to produce more. So firm will invest more in the plant and machinary and production will increase. Hence it will shift the investment curve rightward from I2 to I1. In the figure this has been represented by movement from point A to Point B.
Hence option fourth is the correct answer.
Question 9 (1 point) If the actual interest rate is below the equilibrium interest rate, the...
Question 9 (1 point) If the actual interest rate is below the equilibrium interest rate, the Federal Reserve must intervene in financial markets to restore the interest rate to its equilibrium value O price of bonds will increase O price of bonds will decrease money supply will increase until the interest rate rises money supply will decrease until the interest rate rises Question 10 (1 point) In the short-run macro model, a decrease in the money supply will O result...
What is the future value of $1,975 per year for 23 years at an interest rate...
What is the future value of $1,975 per year for 23 years at an interest rate of 6.21 percent? Multiple Choice $91,190.75 $91,618.92 O 991682 $95,335.78 $92,048.34 $87.902.06
Question 10 Many states do have which impose an upper limit on the interest rate that...
Question 10 Many states do have which impose an upper limit on the interest rate that lenders can charge. price ceiling laws usury laws price floor laws minimum interest rate Question 7 Real interest 1.5 20 Loane fund t 25 30 ons of 2009 dolar) The figure above shows the loanable funds market. If the real interest rate is 2 percent, then there will be government intervention in the market to make sure there is no credit crisis. there will...
What is the future value of $2,050 per year for 25 years at an interest rate...
What is the future value of $2,050 per year for 25 years at an interest rate of 6.27 percent? Multiple Choice $108,020.36 $112,431.80 $116,843.23 $112,814.16 $111,763.09
If a country grows at an average rate of 3.5 percent per year, we can estimate...
If a country grows at an average rate of 3.5 percent per year, we can estimate it will double its Multiple Choice growth rate in 20 years. e o real GDP per capita in 20 years real GDP per capita in 70 years o growth rate in 70 years.
At interest rate of 3% per quarter, the closest nominal interest rate per year is: Less...
At interest rate of 3% per quarter, the closest nominal interest rate per year is: Less than 7.5% Between 7.5%-8.5% between 8.5%-9.5% Higher than 9.5%
50 of 64 (28 complete) This Question: 2 pts Real wage rate (2009 dollars per hour)...
50 of 64 (28 complete) This Question: 2 pts Real wage rate (2009 dollars per hour) a large increase in investment increases labor productivity, explain what happens to a. Potential GDP. b. Employment The real wage rate When labor productivity increases, there is the production function and in potential GDP. O an upwards of an increase OB. a movement up along; an increase OC. a movement up along; no change OD an upward shino, no change Draw a later supply...
Interest rate (percent per year) 7- The figure shows the demand for money curve in Epsilon....
Interest rate (percent per year) 7- The figure shows the demand for money curve in Epsilon. Draw the supply of money curve if the Fed wants the interest rate to be 6 percent a year. Label it. Draw a point at the equilibrium in the money market. 6- bonds. If the interest rate is 5 percent, people will Bond prices will 5- 4- O A. sell; rise OB. buy, fall O C. sell; fall OD. buy, rise MD The interest...
assume the inflation rate 6% per year and the real interest rate is 5%. A)the number...
assume the inflation rate 6% per year and the real interest rate is 5%. A)the number of future dollars after 5 years that will be equivalent to 30000 calculating first real dollar equivalence (constant value dollars) B) The number of future dollars after 5 years that will be equivalent 30000 market interest rate ?
In July, the one year interest rate is 12.63% on British pounds and 9.13% on U.S....
In July, the one year interest rate is 12.63% on British pounds and 9.13% on U.S. dollars. The current exchange rate is USD1.63/GBP. Suppose a change in expectations regarding future U.S. inflation causes the expected future spot rate to decline to $1.49/GBP. Let's assume that the British interest rate stayed at 12.63% because there has been no change in expectations of British inflation. What would the U.S. interest rate expected to be?
Question 9 (1 point) If the actual interest rate is below the equilibrium interest rate, the Federal Reserve must intervene in financial markets to restore the interest rate to its equilibrium value O price of bonds will increase O price of bonds will decrease money supply will increase until the interest rate rises money supply will decrease until the interest rate rises Question 10 (1 point) In the short-run macro model, a decrease in the money supply will O result...
What is the future value of $1,975 per year for 23 years at an interest rate of 6.21 percent? Multiple Choice $91,190.75 $91,618.92 O 991682 $95,335.78 $92,048.34 $87.902.06
Question 10 Many states do have which impose an upper limit on the interest rate that lenders can charge. price ceiling laws usury laws price floor laws minimum interest rate Question 7 Real interest 1.5 20 Loane fund t 25 30 ons of 2009 dolar) The figure above shows the loanable funds market. If the real interest rate is 2 percent, then there will be government intervention in the market to make sure there is no credit crisis. there will...
What is the future value of $2,050 per year for 25 years at an interest rate of 6.27 percent? Multiple Choice $108,020.36 $112,431.80 $116,843.23 $112,814.16 $111,763.09
If a country grows at an average rate of 3.5 percent per year, we can estimate it will double its Multiple Choice growth rate in 20 years. e o real GDP per capita in 20 years real GDP per capita in 70 years o growth rate in 70 years.
At interest rate of 3% per quarter, the closest nominal interest rate per year is: Less than 7.5% Between 7.5%-8.5% between 8.5%-9.5% Higher than 9.5%
50 of 64 (28 complete) This Question: 2 pts Real wage rate (2009 dollars per hour) a large increase in investment increases labor productivity, explain what happens to a. Potential GDP. b. Employment The real wage rate When labor productivity increases, there is the production function and in potential GDP. O an upwards of an increase OB. a movement up along; an increase OC. a movement up along; no change OD an upward shino, no change Draw a later supply...
Interest rate (percent per year) 7- The figure shows the demand for money curve in Epsilon. Draw the supply of money curve if the Fed wants the interest rate to be 6 percent a year. Label it. Draw a point at the equilibrium in the money market. 6- bonds. If the interest rate is 5 percent, people will Bond prices will 5- 4- O A. sell; rise OB. buy, fall O C. sell; fall OD. buy, rise MD The interest...
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