explain the impact of zero interest rate to the indonesian economy
zero interest rate to the indonesian economy have implications like-
1. It will help in stimulation of growth in the overall economy which have been slowed down by inflationary like situation.
2. It is expected to leave people with more of the disposable income so they could add to their expenditure.
3. Lower interest rate is inclusive towards making business left with more profit and less tax so they could pass onto the benefits to the end user.
4. Overall lower interest rate is expected to boost the overall growth of Indonesian Economy.
Under the leadership of Suharto, the Indonesian economy grew at a steady pace. Why was this ultimately not sustainable?
Under the leadership of Suharto, the Indonesian economy grew at a steady pace. Why was this ultimately not sustainable?
Under the leadership of Suharto, the Indonesian economy grew at a steady pace. Why was this ultimately not sustainable?
1. Consider an economy with zero interest rate and aggregate output less than its natural output (liquidity trap). a. Draw IS-LM curves representing this economy. b. Draw AD-AS curves representing this economy. c. Explain why the price adjustment mechanism (wage and price changes) does not work in this condition. d. What type of policy (fiscal/monetary) is needed to reduce unemployment rate and increase output? Show on the graphs. f. Do you think that the policy packages in response to the...
According to the Fisher equation, the real interest rate is given by a zero. b. the nominal interest rate plus the rate of inflation c. the nominal interest rate minus the rate of unemployment. d. the rate of economic growth. e. the nominal interest rate minus the rate of inflation An implication of sticky inflation is that, through monetary policy changes, the Federal Reserve a. has no impact on inflation b. can alter the real interest rate in the long...
If the US interest rate is close to zero, while the interest rate of Russia is very high, what would interest rate parity suggest about the forward rate of the Russian ruble? Explain.
Given the Fisher Equation, what is the impact of a zero nominal interest rates (we have approached very low rates recently—although not zero, it has been close) and deflation on the real interest rate. You need to write down the Fisher Equation along with this answer.
Describe 1. Explain how to find the equilibrium interest rate in an economy with government bonds 2, Explain why people save more with a temporary income change than with a permanent income change
Explain the multiplier effect as it pertains to the corona virus’s impact on the economy.
The economy is in a recession. The FED engages in an open market operation (OMO). Explain in detail how the economy will react. Explain the OMOs impact on asset allocations and the prices of securities; Explain how the OMO will impact the real economy, explain each step of the adjustment process, graph the process.