Why do interest rates rise in expansions and fall in contractions?
Question:
Why do interest rates rise in expansions and fall in contractions?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (6 reviews)
Interest rates rise in expansions and fall in contractions because of the way that central banks manage the money supply During an expansion The econo...View the full answer
Answered By
Madhvendra Pandey
Hi! I am Madhvendra, and I am your new friend ready to help you in the field of business, accounting, and finance. I am a College graduate in B.Com, and currently pursuing a Chartered Accountancy course (i.e equivalent to CPA in the USA). I have around 3 years of experience in the field of Financial Accounts, finance and, business studies, thereby looking forward to sharing those experiences in such a way that finds suitable solutions to your query.
Thus, please feel free to contact me regarding the same.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Economics An Introduction To Traditional And Progressive Views
ISBN: 9780765616685
7th Edition
Authors: Howard J. Sherman, E. K. Hunt, Reynold F. Nesiba, Phillip A. O'Hara, Barbara A. Wiens-Tuers
Question Posted:
Students also viewed these Business questions
-
a. Stock market index information: S&P 500 (stock) index level: Nasdaq Composite (stock) index level: b. Interest rate information : Prime rate: Federal funds rate: Commercial paper rate (90 days):...
-
Why do interest rates and exchange rates move in the same direction in the short run?
-
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
-
The future value S of principal P invested for n years with an interest rate r% compounded annually may be calculated using the formula Rearrange this formula to express P in terms of S, r and n. S =...
-
Draw up a list of the respective pros and cons of licensing.
-
Jones, who is currently unemployed, is a participant in three means-tested welfare programs: food stamps, rent stamps, and day care stamps. Each program grants him $150 per month in stamps, which can...
-
Browne \& Company has no-par value common stock outstanding that is selling at \(\$ 40\) per share. The company's CEO believes that the stock price is undervalued and decides to buy back 10,000...
-
Elm Manufacturing Company (ELM) is a small manufacturer of backpacks located in Rochelle, Illinois. You have access to ELM's electronic records (via the "Sales 2017 - 4th Quarter" dataset provided...
-
Critical Thinking Exercises Present issues encountered while trying to develop a set of enterprise metrics (discussed during Lecture 8 Case Study). Some areas to consider: Find all the metrics used...
-
An exercise advocate wants to determine the effect that walking rigorously has on weight loss. The researcher recruits participants to engage in a weeklong study. The researcher instructs...
-
How do changes in the reserve requirement affect the deposit multiplier?
-
How does the bank manage the asset side of its T account in order to make money?
-
A long solenoid of n turns per unit length has a current that slowly increases with time. The solenoid has radius R, and the current in the windings has the form I(t) = at. (a) Find the induced...
-
Orwell Ltd is about to introduce a new product and hasestablished a target cost of $194 and a target margin on sales of40%. What is the target selling price (rounded to the nearest wholenumber)?
-
PSYCHOLOGY OF CULTURAL DIVERSITY QUESTIONS: 1. Discuss what you look to in order to decide whether or not someone's actions are discriminatory. At what point might you have determined that the...
-
The examination of biological evidence has changed over the last 20 years with the establishment of DNA labs within forensic science laboratory systems. An inevitable follow-up to DNA analysis is the...
-
A small, 2.00-g plastic ball is suspended by a 24.8-cm-long string in a uniform electric field as shown in the figure below. If the ball is in equilibrium when the string makes a 16.0 angle with the...
-
Goal Kick Sports (GKS) is a retail chain that sells youth and adult soccer equipment. The GKS financial planning group has developed a spreadsheet model to calculate the net discounted cash flow of...
-
Vivianas Foods produces frozen meals that it sells for $11 each. The company computes a new monthly fixed manufacturing overhead allocation rate based on the planned number of meals to be produced...
-
The figure shows a bolted lap joint that uses SAE grade 8 bolts. The members are made of cold-drawn AISI 1040 steel. Find the safe tensile shear load F that can be applied to this connection if the...
-
(Accounting for Restricted Stock) Tweedie Company issues 10,000 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2010. The stock has a fair value of $500,000 on this date. The service...
-
(Weighted-Average Number of Shares) Gogean Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock . At no time has Gogean...
-
(EPS: Simple Capital Structure) On January 1, 2010, Chang Corp. had 480,000 shares of common stock outstanding. During 2010, it had the following transactions that affected the common stock account....
-
Garcia Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one unit: Standard Quantity X Standard...
-
In a small town of 5,832 people, the mayor claims that there is a difference in the proportion of voters ages 18-30 who would support an increase in the food tax and the proportion of voters ages...
-
Suppose that the continuously compounding annualized interest rate is 10% and that the price of a S&R stock is $1,000. a. Suppose that you are offered a one-year long forward contract on S&R stocks...
Study smarter with the SolutionInn App