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Readme [11.4K]
3 years ago
11

Using both the supply and demand for bonds and liquidity preference framework, show how interest rate are affected when the risk

iness of bonds rises. Are the results the same in the two frame works
Business
1 answer:
nignag [31]3 years ago
4 0

Answer:

Yes, the results are the same in both frameworks. Please see below for explanation.

Explanation:

With regards to the bond supply and demand framework, people will look to buy more bonds since they are more wealthy now. Hence, the supply of bonds will increase. The supply curve and the demand curve will both move to the right, with the former shifting more than the latter. The equilibrium interest rate will increase.

With regards to the liquidity preference framework, once the economy experiences a positive shift, there will also be an increase in the demand for money. People will make an increased number of transactions as well and hence, the demand curve will move towards the right. The equilibrium interest rate will rise too.

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Answer:

Answer Is Below

Explanation:

When should a child's face covering be removed? (Select all that apply)

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3) If a child is having difficulty breathing.

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2 years ago
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Answer:

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4 years ago
An individual or a company may challenge agency action where such action is _____:
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There may be presence of challenge in an individual or a company when an action is triggered such as having to trigger unwarranted by facts in which will rise challenge and rivalries among the group or in the company itself.

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4 years ago
Both buyers and sellers are price takers in a perfectly competitive market because
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Answer:

The price is determined by government intervention and dictated to buyers anti sellers each buyer and teller knows it it illegal to conspire to affect price.

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