a. Is it the long-term nominal interest rate or the long-term real interest rate that influences spending
Question:
b. How does the market determine the long-term nominal interest rate and why doesn’t it move as much as the short-term interest rates?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (17 reviews)
a It is the real longterm interest rate that influences spending decisions The real interest rate st...View the full answer
Answered By
Kennedy Odhiambo
As a professional writer, I have been in the field for over 5 years having worked as a lecture in different tertiary institutions across the world. With this impeccable experience, I assure provision of a good and supporting environment for students to learn.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
Question Posted:
Students also viewed these Economics questions
-
Suppose that the inflation rate increases, and the Federal Reserve responds by taking actions to raise the short-term nominal interest rate. Use a money market graph to show the result of the Feds...
-
a. What changes in the monetary base have occurred since October 2008? b. How does the Fed bring about an increase in the monetary base? c. How did the increase in the monetary base change the...
-
1. ___________ (Inside/Outside) lags are longer for the Fed. 2. Experimental evidence shows us that individuals perform ________ than committees in making monetary policy decisions. 3. Long-term...
-
? Fisheries Bhd is a small listed company involves in fishing and selling fish to the public via retail outlets. The company owns a building that was acquired in early September 2014 for RM1,200,000,...
-
In the Barnett & Associates example in the appendix to this chapter, suppose Mirzas annual salary is $110,000 rather than $100,000. Also suppose the Barnetts lawyers are expected to work a total of...
-
State the null hypothesis, Ho, and the alternative hypothesis, Ha, that would be used to test the following statements: a. There is a difference in the distributions of the variable between the two...
-
The technique of marginal costing can be a valuable aid to management. Discuss.
-
Information from the December 31, 2020, year-end unadjusted trial balance of Woodstock Store is as follows: Additional information:a. The balance on January 1, 2020, in the Store Supplies account was...
-
write The Major Financial Projections of (Mobile flower cart) project Use the Omani Riyal 1-Income Statement 2- Balance Sheet 3- Cash-Flow Statement
-
Determine the optimum solution for each of the following LPs by enumerating all the basic solutions. (a) Maximize z = 2x1 - 4x2 + 5x3 - 6x4 Subject to x1 + 4x2 - 2x3 + 8x4 2 - x1 + 2x2 + 3x3 + 4x4 ...
-
What is the role of the long-term interest rate in the monetary policy transmission process? Perhaps Ben Bernanke didnt learn in school that long-term interest rates are set by the market but he is...
-
How does a lower Canadian dollar exchange rate influence monetary policy transmission?
-
Babson Sodas Bottling Department had 19,000 units in the beginning inventory of Work in Process on September 1. During September, 100,000 units were started into production. On September 30, 29,000...
-
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $1,470,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $600,000 was recognized and is being...
-
Consider the function f(x) = e^(cos(x)) USING MATLAB a) Write code that will approximate the definite integral of f(x) over [0, 1] using Simpson's rule with 100 evenly spaced subintervals. Compare...
-
What type of research funding method involves shared responsibility for conducting a research project and may grant the funder the authority to withdraw funding if the researcher does not adhere to...
-
Chapter 6 Assignment i 5 Problem 6-52 (LO 6-4) 12.5 points Jordan took a business trip from New York to Denver. She spent two days in travel, conducted business for nine days, and visited friends for...
-
need help completing my one-month project. anyone willing help me. Ellipses Corp One Month Project Ellipses Corp is a small business that operates in Herndon, VA. The company is located at10 Period...
-
Define block sequence code.
-
Southwestern Punch was made by Frutayuda, Inc. and sold in 12-ounce cans to benefit victims of Hurricane Zero. The mean number of ounces placed in a can by an automatic fill pump is 11.7 with a...
-
What is the current value of a five year, $1,000 face value bond that is priced to yield 6% and has a coupon rate of 10%?
-
Multiple Choice Questions 1. In perfect competition, at a firms short-run profit-maximizing output, a. Its marginal revenue equals zero. b. Its average revenue could be greater or less than average...
-
Multiple Choice Questions 1. The short-run supply curve of a perfectly competitive firm is a. Its MC curve. b. Its MC curve above the minimum point of AVC. c. Its MC curve above the minimum point of...
-
Which of the following are most likely to be perfectly competitive? a. Chicago Board of Trade b. Fast-food industry c. Computer software industry d. New York Stock Exchange e. Clothing industry
-
Selected comparative financial statement data for DAS inc. Balance Sheet (En milliers de dollars) 2017 2018 Assets Assets CT - Cash 41.63 47.5 - Accounts Receivable 64.2 72.6 - inventories 969.7...
-
please help!! One chance at turning in!!! 16 rows! I'd highly appreicate it I am unsure what information you need... I provided all Current Attempt in Progress Mike Greenberg opened Grouper Window...
-
Blue Ridge Marketing Inc. manufactures two products, A and B . Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is...
Study smarter with the SolutionInn App