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mina [271]
3 years ago
9

The long-run Fisher effect links rises in inflation with rises in nominal interest rates by the same proportion, resulting in __

__ the demand for money. Group of answer choices an increase in an increase in the supply of money offsetting the increase in no effect on a decrease in
Business
1 answer:
jekas [21]3 years ago
6 0

Answer:

an increase

Explanation:

As according International Fisher effect theory, we have:

<em>Real interest rate = Nominal Interest rate - Inflation rate </em>

As nominal interest rates and inflation rate increase by the same proportion <em>t (t>0)</em><em> (Nominal Interest rate - Inflation rate) x t = Real interest rate x t </em>

<em>=> Real interest rate would rise </em>

<em />

When the domestic real interest rate increases:

+) The demand of domestic market for foreign assets decreases

=> The supply for domestic currency decreases (1)

+) The demand of foreign market for domestic assets increases

<em>=> The demand for domestic currency increases (2)</em>

Opposite result for foreign currency.

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""The question remains: How many guns are necessary to maintain a high level of security for the U.S., and how much butter can t
jenyasd209 [6]

Answer:

social welfare spending (education, hospitals, housing, schools, etc.).

Explanation:

This quote deals with the problem of the ever increasing cost of national defense versus the welfare of the citizens. The US spends more money on national defense than any other country in the world, around 37% of the total military budget of the world. It also represents 15% of the total federal budget and almost half of all discretionary spending.

That is a lot of money to be distributed among a small number of private firms. Usually Republicans tend to favor a large army, but Democrats never lower their budget either. The largest military contractors are Lockheed Martin, Boeing and Raytheon. They are all located in blue states, actually Maryland currently has a Republican governor but both their senators are democrats as well as most of the representatives. Boeing has its headquarters in Washington State and Raytheon in Massachusetts. These aren't blue states, they are indigo states.

But as the military budget increases and the power of military contractors also increases, who will dare to stop them. Military spending is much higher than welfare spending, even if you throw in Medicaid into the equation ($1.6 trillion vs $1 trillion).

The question really is, are guns more important than the well being of our citizens? I guess it depends who you ask.

3 0
3 years ago
A company purchased equipment for use in the business at a cost of $15,000, one-fourth was paid in cash, and the company signed
timofeeve [1]

Answer:rr56iomivt

Explanation:

gi'opi[9[hjkjgkglo8uhuoouhiii6666666699999999999999999

8 0
2 years ago
Products whose demand rises when another product’s price increases are called
Ludmilka [50]

Products whose demand rises when another product's price increases are called: Substitute goods

3 0
2 years ago
Suppose the dollar appreciates relative to foreign currencies. If U.S. firms have domestic content below 100%, the harm to domes
inn [45]

Answer:

The correct answer is: If U.S. firms have domestic content below 100%, the harm to domestic firms is less than the harm if U.S. producers had domestic content of 100%.

Explanation:

This strength of the dollar, which is reflected in exchange rates, has negative and positive implications at the same time for any economy.

What benefits one sector damages the purchasing power of another.

If it is good for those who receive remittances, it is bad for those who want to travel or do business abroad.

Businesses and governments also have to deal with a phenomenon that affects all aspects of the economy.

Importing oil or gas, repaying debt or contracting services abroad can cost more or less depending on exchange rates.

In general terms, that a currency depreciates against the dollar if it has a very intensive international trade with the United States, as is the case in Mexico, causes its economy to be more competitive and drives growth.

This is because American consumers can compare cheaper products made in Mexico.

So in terms of growth, this is a positive effect of the depreciation of a currency and the strength of the dollar.

The increases in interest rates made by the Federal Reserve, the body in charge of dictating the course of monetary policy in the United States, have led to a progressive general strengthening of the dollar against all currencies.

When the US central bank cuts interest rates, it encourages banks to lend more and put more money in the hands of citizens and businesses. And the opposite happens when, as now, the rates rise. Banks lend less and the dollar appreciates.

5 0
3 years ago
A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the fol
svetoff [14.1K]

Answer:

A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. The following concepts can not be illustrated by this concept:

  • the flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing.

Explanation:

  • A Production Possibilities Frontier also known as the Production Possibility Curve or Transformation Curve. This curve illustrates a country or a business is utilizing its resources effectively by showing the point at which that country or business is producing its products efficiently.
  • This curve is unable to tell you the flow of dollars between the seller and buyers of goods of a business or a country.
  • It only tells us about the production of goods not the flow of cash.
7 0
3 years ago
Read 2 more answers
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