Using the liquidity preference framework, show why interest rates are procyclical (rising when the economy is expanding and falling during recessions). Suppose GDP is rising. 1.) Using the line drawing tool, show the effect of rising GDP on the market for money. Properly label your line. 2.) Using the point drawing tool, indicate the new equilibrium interest rate and quantity of money. Label the point '2'. Carefully follow the instructions above and only draw the required obiect

Answers

Answer 1

1. Effect of rising GDP on the market for money:

According to the liquidity preference framework, an increase in GDP leads to a higher demand for money. As the economy expands, individuals and businesses require moreover money to finance their increased transactions and investment activities. This higher demand for money causes the demand curve for money to shift to the right.

2. New equilibrium interest rate and quantity of money:

The increase in the demand for money, driven by rising GDP, creates an imbalance in the money market at the initial interest rate. To restore equilibrium, the central bank needs to increase the money supply. By implementing expansionary monetary policy, such as lowering interest rates or purchasing government securities, the central bank can increase the quantity of money available in the market.

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Related Questions

a sentence using the word reconstruction

Answers

Answer:

The decisive year of the Reconstruction Period was 1876. The bonded debt was incurred during the Reconstruction Period (1865-1875)Reconstruction was a costly experience here as in other Southern states.

Explanation:

pick one :)

Like many cities in the South, Atlanta was poorly prepared to meet the emergency of the Great Depression. Which statement best describes how Atlanta was poorly prepared?

Answers

The correct answer to this open question is the following.

Although you forgot to include the options for this question we can say the following.

Like many cities in the South, Atlanta was poorly prepared to meet the emergency of the Great Depression. The statement that best describes how Atlanta was poorly prepared is "There were only a few programs to help the unemployed."

After many years of prosperity, the city of Atlanta was hit hard by the Great Depression. Indeed, there were not really many government agencies prepared to confront a severe economic crisis such as the Great Depression.

Let's remember that the US stock market crashed on October 29, 1929, the date that represented the beginning of the Great Depression. Millions of American citizens lost their job, companies broke, and banks went into bankruptcy.

Why Nepal is called multireligious country​

Answers

Answer:

Nepal is a multi-religious country in the world so different ethnic groups live with their own way of religious practice, lifestyle, language, culture, and tradition. Nepal has number of a religious groups they which live in peace and harmony. ... Religious and cultural heritages should be preserved and promoted.

Explanation:

this is the name of the plan started by the communist government of china that attempted to rapidly industrialize their economy in the late 1950s.

Answers

Answer:

The Great Leap Forward.

Explanation:

The Great Leap Forward was the Second Five-year plan of the Chinese government during the 1950s. This five-year plan proposes to industrialize the farming community and focusing on collective farming as a means to increase profit.

This plan, proposed by Mao Zedong, abolished the private farming experience or liberty of the people and instead replace it with collective farming, where the farmers will work as a collective and not individually. This will greatly reduce the 'commission' of the farmers while giving most of the profit to the non-working government. This plan was a huge disappointment, leading to mass deaths mainly from su i cide, and also created a huge crack between the people and the government.

Which part of the body allows movement?​

Answers

Answer:

Muscles and bones allows movements.

Explanation:

The locomotor system is also known as the musculoskeletal system. It is made up of the skeleton, the skeletal muscles, tendons, ligaments, joints, cartilage and other connective tissue. These parts work together to allow movement

Based on your knowledge of North Korean history, can you tell me why North Korea is living through the economic and social problems they face today?

Answers

Answer:

1. Disintegration of the Soviet Union

2. Food crisis as a result of natural disasters including hail storms in 1994, droughts in 1997, and flooding from 1995 to 1996.

Explanation:

North Korea is living through economic and social problems due to the following reasons:

1. Disintegration of the Soviet Union

2. Food crisis as a result of natural disasters including hail storms in 1994, droughts in 1997, and flooding from 1995 to 1996.

These natural disasters in turn pushed North Korea into an economic crisis.

According to the 2010 U.S. Census Bureau's American Community Survey report, the ethnic majority shifted from 75 percent European American in 1960 to a Latin American majority in 2007

Answers

The correct answer to this open question is the following.

Here, we do not have a question, just a statement.

What is your question? What do you want to know?

If this is a true or false question, then the correct answer is true.

It is true that according to the 2010 U.S. Census Bureau's American Community Survey report, the ethnic majority shifted from 75 percent European American in 1960 to a Latin American majority in 2007.

Hispanic people population grew in numbers from that period. Immigration from México, Central America, and South American increase the Hispanic population in important locations and cities in the United States. That is the case of places such as Los Angeles, California; Sacramento, California; San Diego, California; Sant Antonio, Texas; Houston, Texas; Chicago, Illinois, Miami, Florida, and New York City.

When is a system of currency exchange most likely to be used?
A.
when one country trades goods with other countries
B.
when one country signs treaties with other countries
C.
when one country regulates trade between other countries
D.
when one country regulates banks in other countries

Answers

Answer:

when one country trades goods with other counties.

help please i can't understand the question cause i'm bad at filipino​

Answers

Answer:

is it ok for you

Explanation:

hope this helps you

what system do scientist use to keep track of their studies

Answers

Answer:

hope it helps

Explanation:

The scientific method is a process used by scientists to study the world around them. It can also be used to test whether any statement is accurate.


What is the Nice model's explanation for why there is no planet in the vicinity of the asteroid belt?

Answers

Answer:

There were more bodies in the asteroid belt in the past, but impacts & the gravitational tug of Jupiter pulled some bodies away & kept the remaining debris spread out, thereby preventing it from ever coming together to create a planet.

Explanation:

Explain the results of Willard Waller's research that he did in the 1930s.

Answers

Answer:

He just basically coined the term principle of the least interest.

Answer:

Much of his research concerned the sociology of the family (with focus on courtship and divorce), sociology of education (pioneering the analysis of schools as social institutions) and the sociology of the military (with focus on veterans). He coined the term principle of least interest. His most notable studies include The Sociology of Teaching (1932), described as an "early classic" in the sociology of education. Before his sudden death, he was recognized as one of the most prominent scholars in the field of sociology.

Explanation:

I got it right on edge:)

what are some negative views about the police that citizens say​

Answers

Answer:

Explanation:

they act out when they dont need to

I will give brainlyest. and lots of pionts
In what ways was the Black Death a cause of change in Medieval European society? Identify at least two ways must be a pharagrph.

Answers

The effects of the Black Death were many and varied. Trade suffered for a time, and wars were temporarily abandoned. Many labourers died, which devastated families through lost means of survival and caused personal suffering; landowners who used labourers as tenant farmers were also affected.

I hope this is what you needed

What was the significance of the
Judiciary Act of 1789?

Answers

Answer:

The Judiciary Act of 1789, officially titled "An Act to Establish the Judicial Courts of the United States," was signed into law by President George Washington on September 24, 1789. Article III of the Constitution established a Supreme Court, but left to Congress the authority to create lower federal courts as needed.

Explanation:

2
During the early 1800s, there was an equal number of slave and free states. Why did many people believe that it was important to
keep this balance?
A. They believed that the balance would determine the results of presidential elections.
B.
They wanted to maintain the balance between pro-slavery and anti-slavery U.S. Senators.
C.
They believed that the balance would determine future foreign trade agreements.
D.
They wanted to keep the balance between pro-slavery and anti-slavery U.S. governors.

Answers

Answer: B

Explanation: B because it seems more right an that is what i think

Which of the following is not a river that flows through Africa?
A)Nile
B)Niger
C)Tigris
D)Congo

Answers

Answer:

D

Explanation:

Which business organization has the MOST liability on the owner

Answers

Unlimited liability-this is by far the greatest disadvantage to the proprietorship. Even though proprietors may invest only part of their capital in the business, they remain personally liable to the full extent of their assets for the liabilities of the business.

1. How does the GDP (PPP) per capita of the countries of Latin America compare with the United States and the rest of the world?

Answers

Answer:

The comparison is made with the application of the PPP exchange rate.

Explanation:

To compare the GDP of a Latin American country with the USA, or any other country, it will be necessary to convert the GDP value of the Latin American country to the currency of the country you want to compare, in this case, to the dollar, if the comparison was made between a Latin American country and the USA.

This conversion is done by applying the PPP exchange rate to the value to be analyzed.

GDP is determined by the average income earned per person in a given area in a specified year. The Jamaica GDP per capita is around 4800.00 USD. Hence, the standard of living in Jamaica is very low when compared.

What is the effect of low GDP?

When GDP slows down, the effects are as follows:

lead to fears of a recession

layoffs and unemployment

declining business revenues and

consumer spending.

The GDP is a means to determine the economic growth and where is challenging.

Therefore, the standard of living of Jamaica when compared to America is very low and this means that, Jamaica will be experiencing poor healthcare, unemployment, and even poverty.

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P.S. I only know the jamaican one... so just do this one

according to hoover what two groups of people are primarily responsible for improving economic conditions

Answers

Answer:

hello

Explanation:

is ethiopia poor or rich country

Answers

Answer:

With more than 112 million people (2019), Ethiopia is the second most populous nation in Africa after Nigeria, and the fastest growing economy in the region. However, it is also one of the poorest, with a per capita income of $850.

I hope it's helpful!

Answer:

Poor

Explanation:

Ethiopia is sadly one of the poorest countries in Africa.It only has a per capita income of $850. Ethiopia's GDP (Gross domestic product) is 95.91 billion.

Which amendment would deal with a criminal suspect returning to the country and state where he/she is suspected of committing a criminal act?
PLEASE HELP I'LL GIVE YOU BRAINLISIT IF YOU ANSWER FIRST​

Answers

The fifth amendment

7. What was the main reason for the creation of the League of Nations?
a. To regulate trade
b. Organize the Olympics
c. Punish Europe for WWI
d. Promote world
peace

Answers

Answer:

b. Organize and Olympics

Explanation:

3. How did Lilia's parents meet Mr. Pirzada?
A. They worked in the same department at the university.
B. They heard of Mr. Pirzada from mutual friends.
C. They met Mr. Pirzada in the supermarket.
D. They were searching for names similar to theirs in the university's directory.

Answers

Answer:

They were searching for names similar to theirs in the university's directory.

Explanation:

Let me know if I'm wrong

Which statement BEST reflects an accurate and positive consequence of government regulatory practice on the economy?

A) Government regulatory practice lowers the risk of harm to citizens and the environment caused by marketplace competition and may cushion economic downturns.
B) Government regulatory practice allows the marketplace determination of consumer pricing, as the practice follows laissez-faire principles.
C) Government regulatory practice creates a burden on consumers by driving up the cost of doing business and of government expenditures.
D) Government regulatory practice maintains an equal competition market among the world’s nations, since each country must employ the same practices as the United States.

Answers

Answer:

D) Government regulatory practice maintains an equal competition market among the world’s nations, since each country must employ the same practices as the United States.

why is the living standard of people involved in agriculture low in Nepal give any four reasons​

Answers

Answer:

Lack of education and widespread poverty has disabled Nepalese peasants from being able to increase production and productivity. Farmers are still unable to use appropriate agricultural inputs such as new techniques, improved seeds, fertilizers, insecticides, etc.

According to the author, what was significant about the vote that took place on the night of November 24th? Check all that apply. An American Indian woman took part in the vote. The expedition leaders ultimately rejected the decision of the group. Only half of the members of the expedition participated. All of the different opinions on the issue were discussed. An enslaved person's vote was considered equal to others' votes.

Answers

Answer:

An American Indian woman took part in the vote. All of the different opinions on the issue were discussed.An enslaved person's vote was considered equal to others' votes.

Explanation:

This relates to the expedition of Lewis and Clark to reach the Pacific ocean. There was a ''vote'' on November 24, 1805 to determine where they would camp for the winter.

It would appear that an American Indian woman named Sacagawea took part in the vote. The opinions of everyone were also discussed and everyone expressed their opinion including York who was an enslaved person to Lewis.

Answer:

A,D,E on edge


why has the Karnataka government fixed the
limit for the maximum area of land that
Can be owned
by a family?​

Answers

Answer:

Why has the Karnataka government fixed the limit for the maximum area of land that can be owned by a family? Answer: Because a family could have more acres . ... They could not able to cultivate all the acres of lands, they could able to cultivate limited acres of land.

Answer:

its because many people but may have black money

and thinks to invest on land

and so to avoid it the maximum land is fixed

Explanation:

thanks

The programs focused on what historians refer to as the "3 Rs": relief for the unemployed and poor, recovery of the economy back to normal levels, and reform of the financial system to prevent a repeat depression.

Answers

Answer:Some of the ways to fight against a poor economy is by employing capable hands born out of passion who are ready to solve a problem. This goes same for NGO' s and organization

Explanation:

Some of the ways to fight against a poor economy is by employing capable hands born out of passion who are ready to solve a problem. This goes same for NGO' s and organization. The 3 R's looks at how development can cut across various(possibly all) sectors of individuals in the society. The 3R's are relief for the unemployed and poor, recovery of the economy back to normal levels, and reform of the financial system to prevent a repeat depression.

Once this is sorted out, the economy becomes an encouragement to everyone, till it's better in all areas.

Who is the current prime minister of India ​

Answers

Answer:

Narendra Modi is the current prime minister of india

Answer:

Narendra Modi

Explanation:

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