Answer:
D. Discount rate
Explanation:
Change the interest rate to the quality of the banks can request from the Federal Reserve System. Member banks can request short-term loans from the EDF. The interest charged by the EDF to banks for loans is called the <u>discount rate</u>, which is higher than the interest rate of commercial banks. This has an effect on the amount of money that banks overdraw.
Answer
really good song: heat waves from glass animals.
Explanation:
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Principal= $100
number of years= 3
Interest rate= 9%
To calculate the present value we need to use the following formula:
Present Value= Final Value*(1+i)^n
PV= 100/(1+0.09)^3
PV= $77.22
Answer:
The answer is Problem Collective.
Explanation:
Simply,
Problem collective, or a Collective action problem is a shared problem that can be cooperated and solved collectively by those who are affected by it but they fail to do so because of their "Conflicting Interests."
Conflicting interests means that the goals of each country/individual are different and in order to come to a productive conclusion, each nation/individual has to make sacrifices and changes to their objectives. But as it doesn't happen, the problem persists and gets worse eventually.
Answer:
Should be done: a counter cyclical or a growth-oriented fiscal policy ,deficit spending and stabilize the aggregate demand.
Explanation:
Keynesian economy is a macroeconomic theory based on the views of the 20th century British economist John Maynard Keynes. Keynes' economy advocates a mixed economy where the private sector is predominant but the state and the public sector play a major role. According to the Keynesian theory, the sum of all the micro-economic behaviors shown by all individuals and businesses results in inefficiency and the economy operates at a level below its potential output and growth. When total demand for products is insufficient, the economy enters a crisis and unnecessary unemployment arises due to defensive behavior of the producers. In such cases, the government may pursue policies to increase aggregate demand, and as a result may accelerate economic activities and reduce unemployment. Most Keynesian propose policies to stabilize the business cycle. For example, if the unemployment level is too high, the state can pursue a growth-oriented monetary policy.
Keynes was thinking of reviving the economy with low interest and state investments as a solution to the Great Depression. The government increases investment income and consequently consumption, resulting in more production and investment, resulting in increased consumption again. The first economic stimulus investment triggers a series of events and the subsequent investment provides a much tougher economic efficiency. According to Keynes, money supply is provided by monetary authority (eg central bank) and monetary policy affects prices. When interest rates fall below this normal rate, investors avoid buying bonds and prefer to hold cash in anticipation of higher rates. When interest rates are above this normal rate, they tend to buy bonds with the expectation that they will fall. Therefore, it can be said that there is a negative relationship between money demand and interest rate.
