According to the liquidity-preference theory by Keynes, the level of interest rates is a purely a monetary
Question:
According to the liquidity-preference theory by Keynes, the level of interest rates is a purely a “monetary phenomenon.” What does that mean?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (3 reviews)
The liquiditypreference theory by John Maynard Keynes postulates that interest rates in an economy are determined by the supply and demand for money T...View the full answer
Answered By
Payal Mittal
I specialize in finance and accounts.You can ask any question related to til undergradution.Organizational behaviour and HRM are my favourites for you can always relate to them and is an art with practical knowledge base.
4.90+
226+ Reviews
778+ Question Solved
Related Book For
Bond Markets Analysis And Strategies
ISBN: 9780253337535
10th Edition
Authors: Frank J. Fabozzi, Francesco A. Fabozzi
Question Posted:
Students also viewed these Business questions
-
According to the Liquidity preference theory any changes in the stock of bonds is exactly offset by changes in the supply of loanable funds. is exactly offset by changes in the demand of loanable...
-
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
-
According to the Liquidity preference theory, which of the following does not explain why people hold money? transaction motive.nominal Income motive.precautionary motive.speculative motive.
-
IKEA was founded in 1943 by a 17-year-old Swede named Ingvar Kamprad. The company, which initially sold pens, Christmas cards, and seeds from a shed on Kamprad?s family farm, eventually grew into a...
-
A 0.250-H inductor carries a time-varying current given by the expression i = (l24 mA) cos [(240 /s) t]. (a) Find an expression for the induced emf as a function of time. Graph the current and...
-
Which is the name for restaurant and hotel industry initiatives designed to increase revenues by selling buyers more, or higher priced, items than they originally intended to purchase? a. Up selling...
-
In connection with the annual examination of Johnson Corporation, you have been assigned to audit the fixed assets. The company maintains a detailed property ledger for all fixed assets. You prepared...
-
You are a senior manager responsible for overall company operations in a large courier company. Your company has 106 regional offices (terminals) scattered around the country and a main office (hub)...
-
QUESTION 1 - Going concern and factual insolvency ( 3 0 marks ) Lock - in ( Pty ) td is a company that manufactures burglar proofing, security doors and gates for domestic use. The company operates...
-
How does the loanable funds theory expand Fishers theory of interest rate determination?
-
What is meant by the real rate of interest?
-
Insert the required factor in the parentheses. 1. x2(x3 1)4 = ( )(x3 1)4(3x2) 2. x(1 2x2)3 = ( )(1 2x2)3(4x) 3. (4x + 6) / (x2 + 3x + 7)3 = ( ) 1 / (x2 + 3x + 7)3 (2x + 3)
-
2. For the Boolean function, F (A, B, C, D) = m(1, 3, 5, 7, 9, 15), answer the following (you must show all steps clearly) a. Use KMAP and minimize the function b. Write the minimized equation and...
-
Both of the following for clauses would generate the same number of loop iterations: for num in range(4): for num in range(1,5): Your answer: Yes No Clear answer
-
Consider a computer that uses 8 bits to represent floating-point numbers, 1 bit for the sign s, 3 bits for the exponent c (c =e +3), and 4 bits for fractional part f. In terms of s, e, and f, the...
-
The Python script below will output____________ on the console. import numpy as np = np.array([-3.8, 4.5, -0.2, 0.4, 10.4]) print (np.floor(a)) O [44-10 10] O [4.4. -1. 10.] O [-3 4010] O [-3.4.0.10]
-
3. We will develop numerical methods to solve the equation u+au=0, aR>, (2) u(x, t) and a is a speed. You will also need the last non-zero digit of your ID where u = number a. i Perform a Taylor...
-
Assume ABC Cupcakes of Montana, Inc., completed the following transactions during 2012, the companys 10th year of operations: Requirement 1. Analyze each transaction in terms of its effect on the...
-
Anna, a high school counselor, devised a program that integrates classroom learning with vocational training to help adolescents at risk for school dropouts stay in school and transition to work...
-
Identify the most popular locations to establish an offshore hedge fund and indicate the institutional characteristics prevailing in such places.
-
Explain the three legal forms under which offshore hedge funds may be registered.
-
Explain the difference between onshore and offshore hedge funds.
-
1. The PREA survey focuses on three areas: financial performance, productivity and management practices. This survey seems to focus on improving operations from a management perspective. If you could...
-
Part 1: The Program Explain in detail: The program you identified within your specialization area(My specialization is Special Education)that is in need of evaluation. Be sure to include the purpose...
-
Should the U.S. Government play a greater role in providing an economic "safety net" for its citizens than it currently does? Alternatively, should such a greater role be the obligation of...
Study smarter with the SolutionInn App