« previous next »

Author Question: Suppose an increase in government spending occurs that is at least partially unexpected. Explain ... (Read 65 times)

waynest

  • Hero Member
  • *****
  • Posts: 553
on: Jun 30, 2018
Suppose an increase in government spending occurs that is at least partially unexpected. Explain what effect this will have on stock prices.
 
  What will be an ideal response?

Question 2

Assume that investment does not depend on the interest rate. A reduction in the money supply will cause which of the following for this economy?
 
  A) no change in the interest rate
  B) no change in output
  C) a reduction in investment
  D) an increase in investment


234sdffa

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 30, 2018
Answer to Question 1

Output rises and interest rates rise. Here, the effects are ambiguous. The rise in the interest rate will reduce stock prices while the increase in Y will increase them.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Breast cancer. Notice the tumor growing within a lactiferous gland, which occurs in infiltrating duc Breast cancer. Notice the tumor growing within a lactiferous gland, which occurs in infiltrating duc
In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th
The transition between steps usually occurs at a temperature that would not interfere with cold ... The transition between steps usually occurs at a temperature that would not interfere with cold ...
A typical camshaft-driven high-pressure pump used to increase fuel pressure to 2,000 PSI or higher. A typical camshaft-driven high-pressure pump used to increase fuel pressure to 2,000 PSI or higher.
A partially replicated bacteriophage DNA molecule A partially replicated bacteriophage DNA molecule
Explain the myogenic autoregulation of the glomerular filtration rate Explain the myogenic autoregulation of the glomerular filtration rate
Video: Introduction to Human Immunodeficiency Virus (HIV)

For a complete list of videos, visit our video library