Question
5. a. Explain marginal rate of time preference and reward for saving under the supply of savings of Fishers classical approach. b. Indicate all the
5. a. Explain marginal rate of time preference and reward for saving under the supply of savings of Fishers classical approach.
b. Indicate all the effects of decrease in demand by Print Publishing Companies due to advancement for Online Publishing Services and thereby show any change in equilibrium rate of interest for borrowing less funds by the former companies under Fishers classical approach. Indicate the results of any shift in the graph.
c. Consider all the effects for lower savings due to decrease in households real incomes and thereby show any change in equilibrium rate of interest for supplying less funds to the corporate deficit units under Fishers classical approach. Indicate also the results of any shift in the graph.
d. Find out any change in equilibrium interest rate under Keyness liquidity preference theory if central bank decreases supply of money by restricting commercial banks to offer more loans or credits.
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