Class, would you expect the fund's demand curve for businesses to be steeper than the demand curve for funds by the federal government? Explain.
Businesses inherently are based on profit while the government is not based on profit, then the business is expected to be more sensitive to changes in interest rate. The government on the other hand is less sensitive to interest rate. So the demand curve for business is more elastic and hence flatter as compared to the government which is less elastic.
Class, would you expect the fund's demand curve for businesses to be steeper than the demand...
Since the start of the coronavirus outbreak, the yield curve has become considerably steeper. The difference between the yield on the 10-year U.S. Treasury and the federal funds rate has increased be about 100 basis points. Explain how such a change would likely affect the net interest margin of a bank such as local banks?
A) Is the demand for Dell computers to be more or less price-elastic than the demand for all Computers? Explain B) Compare the demand curve of Dell computers and the demand curve for all computers, which one is steeper?
Which of the following would cause the aggregate demand curve to shift to the right? Group of answer choices an appreciation of the American dollar an increase in real interest rates a decrease in the money supply an increase in purchases by the federal government
1. which of the following will cause the demand of loanable funds curve to shift rightward? A) businesses are more confident in the future of the economy B) household’s wealth increases C) an increase in government regulations that make plant expansion difficult D) an increase in asset prices leading to a decrease in purchases of stocks and bonds 2. which of the following will cause the supply of loanable funds curve to shift rightward? A) An increase in the government...
Question 18 1.5 pts An oligopolist operating with a kinked demand curve would expect rivals to match both its price increases and price decreases. True False
Under what circumstances would you expect income to be a better predictor of consumer behaviour than a composite measure of social class (ex. based on income, education, and occupation) and when would you expect the composite social-class measure to be superior?
1. Which of the following is not a property of the aggregate demand curve? It shows the relationship between the overall price level and level consumption. It shows the price level on the vertical axis and output on the horizontal axis. The aggregate demand curve slopes downward. It shows the relationship between the overall price level and the level of total demand. 2. When the price level increases people: feel more wealthy. have the same real value of assets, regardless...
A. Suppose that demand increases and supply decreases. What would we expect to happen in the market? a) Equilibrium price would decrease, but the impact on quantity would be ambiguous. b)Equilibrium price would increase, but the impact on quantity would be ambiguous. c)Both equilibrium price and quantity would increase. d) Both equilibrium price and quantity would decrease. B. If buyers now wanted to purchase larger quantities of a soft drink, what do we know about its demand curve? a) The...
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If education produces positive externalities and the government does not intervene in the market, we would expect O the equilibrium price to be higher than the optimal price. b. the equilibrium quantity to be lower than the optimal level. c.the equilibrium quantity to be higher than the optimal level. d. both a and b are correct Tradable pollution permits a. have prices that are set by the government. b. will be more valuable to...
2) Why is the firm’s demand curve flatter than the total market demand curve in monopolistic competition? Suppose a monopolistically competitive firm is making a profit in the short run. What will happen to its demand curve in long run equilibrium ? What could this firm do to affect what happens to its demand curve? Explain in detail.