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Sergeu [11.5K]
3 years ago
15

According to the theory of liquidity preference, tightening the money supply will ______ nominal interest rates in the short run

, and, according to the Fisher effect, tightening the money supply will ______ nominal interest rates in the long run.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
Business
1 answer:
NeTakaya3 years ago
5 0

Answer:

B) increase; decrease

Explanation:

According to the liquidity preference theory interest rates are determined by the supply and demand of money. So when the money supply is tightened it decreases the supply of money, which shifts the supply curve of money to the left and therefore interest rates increase. According to the fisher effect tightening the money supply will decrease the nominal interest rates in the long run because in the long run according to fisher interest rates and inflation rates move in the same direction, so when the money supply is tightened the inflation rates also fall because people spend less money and therefore when inflation is falling nominal interest rates also decrease.

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There is a bias in the political process against free trade because ______.
Helga [31]

Answer:

B. those who lose from free trade are better organized than those who gain.

Explanation:

There is a bias in the political process against free trade because <u>those who lose from free trade are better organized than those who gain</u>.

Free trades are the business agreement between two or more countries to import or exports among these countries does not have tax duties to follow, which boast their relationship and economy of countries as people can get quality goods at very low cost from other nation, however, many domestic organized sectors the affected by the free trade as they lose customer and revenue. Therefore, free trade has a negative effect on the local producer, which causes bias in the political process against free trade.

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The focus on green real estate and the number of people seeking sustainability has grown because of a wide array of market facto
NISA [10]

The focus on green real estate and the number of people seeking sustainability has grown because of a wide array of market factors. Increased demand for multiple-family homes is NOT a growth factor.

<h3>What is a green project in real estate?</h3>

It's not just developers embracing sustainability; increasingly, green real estate is driven by tenants. Businesses that strongly advocate corporate social responsibility are increasingly expecting a better indoor environment, lower operating costs, and enhanced market value for their spaces.

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brainly.com/question/7156224

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4 0
2 years ago
g An investor wants to be able to buy 4% more goods and services in the future in order to induce her to invest today. During th
Hitman42 [59]

Answer: a. I, II and III are true

Explanation:

From the question, the statements that are true are:

I. 4% is the desired real rate of interest. II. 6% is the approximate nominal rate of interest required.

III. 2% is the expected inflation rate over the period.

4% is the desired real rate of interest because that's the rate at which the investor is willing to buy the goods in future.

2% is the expected inflation rate over the period because at that rate, there's expectation of future rise in price while 6% is the approximate nominal rate of interest required which is the addition of the 4% and the 2%.

7 0
3 years ago
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess d
Lerok [7]

Answer:

D) The quantity of available rental housing units falls.

Explanation:

Price ceilings often carry long-term disadvantages, such as shortages, extra charges, or lower quality of products.

Price Ceilings major long-term effect is for goods to be in high demand but supply to be in shortfall creating an ongoing presence of a black market

Therefore when cities prevent landlords from charging market rents, the definite consequence and common long-run outcomes is that the quantity of available rental housing units falls.

7 0
3 years ago
Peter temporarily takes over Thomas job in his absence,what does this move represent? (10 marks)
Ratling [72]

Answer:

A job substitution

Explanation:

A substitute is a person who takes over a job or position from another for a shorter period of time in his absence. The term is known from substitute teachers in the school, but also from substitute priests and substitute doctors who may be subordinate officials who temporarily take over for the superior.

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