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please quickly thanks ! The Central Bank of Russia announced on April 8 that the board of directors of the central bank decided to cut
please quickly thanks !
The Central Bank of Russia announced on April 8 that the board of directors of the central bank decided to cut the benchmark interest rate by 300 basis points from 20% to 17% from April 11. After this announcement, major Russian banks responded quickly and began to change or announce a reduction in interest rates on savings and loan products from the 8th. Russian economic experts generally believe that the central bank's interest rate cut and other measures are undoubtedly correct, which is also a positive signal for the Russian economy, and will also boost the expectations and sentiments of businesses and the public. (1) Please describe the liquidity preference theory. (2) According to the text, use the liquidity preference theory and loanable fund market theory to analyze what may change in the loanable funds market in Russia and why. (3) According to Bloomberg News, Russian Finance Minister Siluanov said that due to high borrowing costs, Russia will suspend bond issuance for the rest of 2022. "We don't plan to enter the domestic or foreign market this year, which doesn't make sense because the cost of borrowing is huge," Siluanov said. How will this affect the domestic investment in Russia? Show your reasonsStep by Step Solution
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