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Harman [31]
3 years ago
6

______________ was a seventeenth- and eighteenth-century belief that a nation should try to sell more goods to other nations tha

n it buys from them.
Business
1 answer:
GarryVolchara [31]3 years ago
3 0

Answer:

Mercantilism

Explanation:

Mercantilism is the belief that a country should always run a trade surplus. The European powers (Portugal, Spain, France, The Netherlands, and Britain) of the seventeenth and eighteenth century had colonies from where they extracted resources in order to enrich the mother country and keep the trade surplus.

For this same reason, the power prohibited intercolonial trade, since it could reduce the mother country's trade surplus, or even, turn it into a deficit.

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In the short run, if the Fed(Federal Reserve) increases the quantity of money, the quantity of money demanded will increase and the nominal interest rate falls.  

The quantity of the money supplied and the nominal interest rates has an inverse relation. That is, when there is a huge supply of money in a short-term, it will cause an increase in the nominal interest rate.

The nominal interest rate refers to the interest rate before adjusting to inflation or price-hike. It balances the supply and demand of money.

So when there is an increase in the supply of money ,there will be the resulting increase in the demand of money too. The total money that the population wants to hold is referred as the money demanded.

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