Income and wealth are distributed arbitrarily. Those who hold money benefit while those who hold real assets benefit
Interest rates rise
Investment will be discouraged
Encouragement of speculation thorough the purchase of real assets
Inefficiency in production of goods and services
Social and industrial unrest due to the prices of commodities
Dana05 answered the question on August 15, 2019 at 13:53
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Highlight the methods used to correct the trade deficit in the J curve phenomenon
(Solved)
Highlight the methods used to correct the trade deficit in the J curve phenomenon
Date posted:
August 14, 2019
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Answers (1)
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Describe the J curve phenomenon
(Solved)
Describe the J curve phenomenon
Date posted:
August 14, 2019
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Answers (1)
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Differentiate between the flexible and fixed exchange rate regimes
(Solved)
Differentiate between the flexible and fixed exchange rate regimes
Date posted:
August 14, 2019
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Answers (1)
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Define the following terms: Exchange rate, Depreciation of the currency, Devaluation Appreciation, Terms of trade
(Solved)
Define the following terms:
- Exchange rate
- Depreciation of the currency
- Devaluation
- Appreciation
- Terms of trade
Date posted:
August 14, 2019
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Answers (1)
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Briefly explain the factors that cause a shift in the balance of payments curve
(Solved)
Briefly explain the factors that cause a shift in the balance of payments curve
Date posted:
August 14, 2019
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Answers (1)
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Why is the balance of payments curve positively sloped
(Solved)
Why is the balance of payments curve positively sloped
Date posted:
August 14, 2019
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Answers (1)
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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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Answers (1)
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Give the definition of balance of payments
(Solved)
Give the definition of balance of payments
Date posted:
August 14, 2019
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Answers (1)
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Explain the factors that cause changes in the general equilibrium
(Solved)
Explain the factors that cause changes in the general equilibrium
Date posted:
August 14, 2019
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Answers (1)
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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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Answers (1)
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What is the effect of decrease in income on the interest rate?
(Solved)
What is the effect of decrease in income on the interest rate?
Date posted:
August 14, 2019
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Answers (1)
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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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Answers (1)
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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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Answers (1)
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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
(Solved)
Describe the classical theory of money supply
Date posted:
August 14, 2019
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Answers (1)
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What is the velocity of money in an economy?
(Solved)
What is the velocity of money in an economy?
Date posted:
August 14, 2019
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Answers (1)
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Describe the modern quantity theory of money
(Solved)
Describe the modern quantity theory of money
Date posted:
August 14, 2019
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Answers (1)
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Describe how the liquidity trap occurs in an economy
(Solved)
Describe how the liquidity trap occurs in an economy
Date posted:
August 14, 2019
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Answers (1)
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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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Answers (1)
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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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Answers (1)