Macroeconomics
13th Edition
ISBN: 9780134744452
Author: PARKIN, Michael
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 8.5, Problem 5RQ
To determine
Explain the changes in quantity of money and interest rate in the long- run.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
In this scenario, money might be neutral in the long run, and it might not. How could the short run change described above lead to a long run result that has higher prices but no change in output from the original value? Explain in graphs and word.
Is this possible or not that the rate of interest fall to zero? 300 words
Discuss the impact of the increase in government taxes on interest rates in the long run.
Chapter 8 Solutions
Macroeconomics
Ch. 8.1 - Prob. 1RQCh. 8.1 - Prob. 2RQCh. 8.1 - Prob. 3RQCh. 8.1 - Prob. 4RQCh. 8.1 - Prob. 5RQCh. 8.2 - Prob. 1RQCh. 8.2 - Prob. 2RQCh. 8.2 - Prob. 3RQCh. 8.2 - Prob. 4RQCh. 8.2 - Prob. 5RQ
Ch. 8.3 - Prob. 1RQCh. 8.3 - Prob. 2RQCh. 8.3 - Prob. 3RQCh. 8.3 - Prob. 4RQCh. 8.3 - Prob. 5RQCh. 8.4 - Prob. 1RQCh. 8.4 - Prob. 2RQCh. 8.4 - Prob. 3RQCh. 8.5 - Prob. 1RQCh. 8.5 - Prob. 2RQCh. 8.5 - Prob. 3RQCh. 8.5 - Prob. 4RQCh. 8.5 - Prob. 5RQCh. 8.6 - Prob. 1RQCh. 8.6 - Prob. 2RQCh. 8.6 - Prob. 3RQCh. 8.6 - Prob. 4RQCh. 8 - Prob. 1SPACh. 8 - Prob. 2SPACh. 8 - Prob. 3SPACh. 8 - Prob. 4SPACh. 8 - Prob. 5SPACh. 8 - Prob. 6SPACh. 8 - Prob. 7SPACh. 8 - Prob. 8SPACh. 8 - Prob. 9SPACh. 8 - Prob. 10APACh. 8 - Prob. 11APACh. 8 - Prob. 12APACh. 8 - Prob. 13APACh. 8 - Prob. 14APACh. 8 - Prob. 15APACh. 8 - Prob. 16APACh. 8 - Prob. 17APACh. 8 - Prob. 18APACh. 8 - Prob. 19APACh. 8 - Prob. 20APACh. 8 - Prob. 21APACh. 8 - Prob. 22APACh. 8 - Prob. 23APACh. 8 - Prob. 24APACh. 8 - Prob. 25APACh. 8 - Prob. 26APACh. 8 - Prob. 27APA
Knowledge Booster
Similar questions
- How does competition between capitals necessitate accumulation?arrow_forwardIf the price of gold had not changed, what would have been the change in Glitter Gulch’s real output?arrow_forwardWhich of the following would cause prices to fall and real GDP to rise in the short run? A) an increase in workers' wage rate B) a decrease in the capital stock C) an increase in the quantity of labor available D) a higher interest ratearrow_forward
- Let's say you are the Director of Marketing for an American-based electronics company. You import parts for your products and sell those products both in the US and to a worldwide market. Each morning you read the Wall Street Journal and recently you came across the following column. What does this mean for your business, and how do you capitalize on the situation? Dollar Falls After U.S. Inflation Data Weaker-than-expected Labor Department numbers dent expectations for U.S. interest-rate increases By Chelsey Dulaney Updated Aug. 11, 2017 5:34 p.m. ET The data is the latest in a string of weak inflation readings that investors worry will derail the Federal Reserve’s plans to raise interest rates again this year. Markets are now pricing in just a 36% chance of another rate increase this year, down from 47% a week ago, CME Group data shows. Expectations that rates will remain lower weigh on the dollar by making U.S. assets less attractive to yield-seeking investors. “Inflation…gives…arrow_forwardIf the investment curve was horizontal and the prices increased? Explain what will happen to interest rate and quantity of money? Using graph.arrow_forwardHow do you think a firm will be able to maximize their profits if the economy starts to go into a recession?arrow_forward
- What is the difference between production cards and move cards?arrow_forwardHello, can you help me answer this question? If a large corporation such as Walmart makes decisions that dramatically affect their stock prices, is that “micro” or “macro” economics? Also, why exactly?arrow_forwardHow does the aggregate demand and aggregate supply looks in the long run. Explain with the help of a proper graph.arrow_forward
- For an increase in output, average costs change by more in the short-run than in the long-run, but for a decrease in output, the opposite is true. True, false, or uncertain?arrow_forwardScientists invent a new low cost solar panel able to reduce the price of producing electricity by 50% Given this improvement in technology, what will happen to the price level and output, respectively, in the long run? Rise. Fall Uncertain, Fall Uncertain, Rise Rise, Rise Fall, Risearrow_forwardWhen the supply of money increases, what happens to the interest rate? A. the interest rate decreases B. the interest rate increases Thanks z zarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning