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Mumz [18]
3 years ago
5

Suppose that the price level is fixed in the short run so that the economy​ doesn't reach general equilibrium immediately after

a change in the economy. Determine the​ short-run effects on the real interest rate and output when the expected rate of inflation falls.

Business
1 answer:
Paraphin [41]3 years ago
6 0

Answer:

When the expected rate of inflation falls, the <em>LM</em> curve shifts up to the left because the demand for money decreases which increases the real interest rate. This shift is displayed in the graph in the picture attached.

The graph shows that the real interest rate increases and output decreases.

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Sheffield Corp. sold $120000 of goods and accepted the customer's $120000 8%, 1-year note receivable in exchange. Assuming 8% ap
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The journal entry to record the sale :

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A code of ethics: a should be kept confidential from a firm's employees. b should be limited to a list of dos and don'ts. c shou
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