The balance of payment curve is positively sloped because the higher the level of income, the smaller the next export balance which can only be offset by a higher interest rate, hence reducing the net capital inflow
Dana05 answered the question on August 14, 2019 at 07:33
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What is the balance of payments made up of?
(Solved)
What is the balance of payments made up of?
Date posted:
August 14, 2019
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Give the definition of balance of payments
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Give the definition of balance of payments
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August 14, 2019
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Explain the factors that cause changes in the general equilibrium
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Explain the factors that cause changes in the general equilibrium
Date posted:
August 14, 2019
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The following equation describe a certain economy
C = 400+ 0.75T
I = 200 - 100r
T = 70 + 0.2Y
G = 100
Money supply = 4000
Money demand...
(Solved)
The following equation describe a certain economy
C = 400+ 0.75T
I = 200 - 100r
T = 70 + 0.2Y
G = 100
Money supply = 4000
Money demand = 0.2Y – 10r
Find the values of Y, C, T, M and I
Date posted:
August 14, 2019
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What is the effect of decrease in income on the interest rate?
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What is the effect of decrease in income on the interest rate?
Date posted:
August 14, 2019
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What is the effect of increase in income on the interest rate?
(Solved)
What is the effect of increase in income on the interest rate?
Date posted:
August 14, 2019
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What is the effect of decrease of money supply on the interest rate?
(Solved)
What is the effect of decrease of money supply on the interest rate?
Date posted:
August 14, 2019
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What is the effect of increase of money supply on the interest rate?
(Solved)
What is the effect of increase of money supply on the interest rate?
Date posted:
August 14, 2019
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Answers (1)
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Describe the classical theory of money supply
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Describe the classical theory of money supply
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August 14, 2019
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What is the velocity of money in an economy?
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What is the velocity of money in an economy?
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August 14, 2019
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Describe the modern quantity theory of money
(Solved)
Describe the modern quantity theory of money
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August 14, 2019
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Describe how the liquidity trap occurs in an economy
(Solved)
Describe how the liquidity trap occurs in an economy
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August 14, 2019
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Describe the speculations motive for holding money according to Keynes
(Solved)
Describe the speculations motive for holding money according to Keynes
Date posted:
August 14, 2019
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Describe the precautionary motive for holding money according to Keynes
(Solved)
Describe the precautionary motive for holding money according to Keynes
Date posted:
August 14, 2019
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Describe the transactions motive for holding money according to Keynes
(Solved)
Describe the transactions motive for holding money according to Keynes
Date posted:
August 14, 2019
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Briefly explain the factors that affect the amount of money held for the transactions motive
(Solved)
Briefly explain the factors that affect the amount of money held for the transactions motive
Date posted:
August 14, 2019
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According to Keynes, how is the transactions demand for money affect by the interest rate
(Solved)
According to Keynes, how is the transactions demand for money affect by the interest rate
Date posted:
August 14, 2019
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Discuss the process of money creation by commercial banks
(Solved)
Discuss the process of money creation by commercial banks
Date posted:
August 14, 2019
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Highlight the properties of money as a medium of exchange
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Highlight the properties of money as a medium of exchange
Date posted:
August 14, 2019
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Describe how paradox of thrift occurs
(Solved)
Describe how paradox of thrift occurs
Date posted:
August 14, 2019
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