This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume that there is an increase in perceived bankruptcy risk. As a result of this we would expect ... (Read 68 times)

berenicecastro

  • Hero Member
  • *****
  • Posts: 581
on: Jun 30, 2018
Assume that there is an increase in perceived bankruptcy risk. As a result of this we would expect to see
 
  a. income and interest rates to rise.
  b. money demand and interest rates to fall.
  c. money demand and interest rates to rise.
  d. money supply to rise and interest rates to fall.Figure 7-1

Question 2

Contrast the Cambridge and Fisher versions of the quantity theory. Explain why the Cambridge version of the quantity theory represents a more modern monetary theory when compared to Fisher's version.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Perkypinki

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

In the Fischer version, money circulated at a fixed rate (velocity) which was completely exogenous and not related to the demand for money. The Cambridge focus was on the quantity theory as a theory of the demand for money. The proportional relationship between the quantity of money and the price level resulted from the fact that the proportion of nominal income people wished to hold in the form of money (k) was constant and the level of real output was fixed by supply conditions.


berenicecastro

  • Member
  • Posts: 581
Reply 2 on: Jun 30, 2018
Excellent

Viet Thy

  • Member
  • Posts: 329
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Adolescent females who participate in activities such as ballet are at risk for eating disorders Adolescent females who participate in activities such as ballet are at risk for eating disorders
Serotonin and Risk-Taking Behavior Serotonin and Risk-Taking Behavior
Two transesterification reactions that result in splicing of exons in pre-mRNA Two transesterification reactions that result in splicing of exons in pre-mRNA
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
Risk factor for children age 2 to 3 Risk factor for children age 2 to 3
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
Video: Type of Cell Junctions - Desmosome, Hemidesmosomes and Gap Junctions

For a complete list of videos, visit our video library