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Why does the LM curve have a positive slope?

The LM curve has a positive slope because as interest rates increase, the quantity of money demanded decreases. This is because higher interest rates make borrowing more expensive, leading to a decrease in investment and consumption, which in turn reduces the demand for money.


Reasons for appreciation of rand against American dollar?

The appreciation of the South African rand against the American dollar can be attributed to several factors, including improved economic indicators such as rising commodity prices, which boost South Africa's export revenues. Additionally, increased foreign investment and positive investor sentiment regarding South Africa's economic policies can strengthen the rand. Furthermore, fluctuations in U.S. interest rates and economic performance can lead to a weaker dollar, contributing to the rand's appreciation. Lastly, political stability and effective governance in South Africa may enhance confidence in the currency.


What are the positive effects of the stock market on the us economy?

It is because the companies sell the stocks when they go public and keep the money as operating capital and never have to retun it to the stock holders or anyone else. They do not have t pay any interest or dividends. If the market looses confidence in the value of the stock the company cannot reise additional capital and it goes bankrupt.


How can one improve employee productivity?

In order to improve employee productivity one should give positive or constructive feedback upon the work of each of the employees. In addition, it may be of great interest of allowing employees to come with their own suggestions for how to improve the production capacity and the workplace environment. If the employees are more free to move and feel that they can affect their workplace, they will have a greater motivation.


What quote is representative of what economic system?

A quote that represents capitalism is "The invisible hand of the market guides individual self-interest to promote overall economic well-being." This phrase, coined by Adam Smith, encapsulates the idea that individuals pursuing their own economic interests can lead to positive outcomes for society as a whole. It highlights the self-regulating nature of markets, a key principle of capitalist economies.

Related Questions

A positive aspect of interest groups is that they help stimulate interest in?

true


When would a business have negative interest income?

It wouldn't be a negative.....if you're looking at an annual filing and it shows a positive interest expense line and a negative interest income line....it doesn't mean that the interest income is actually negative....it offsets the interest expense...since all positive amounts are actually being deducted from Net Sales


Can you earn interest from a credit card if you have a positive credit account and does the credit company have to pay you interest for borrowing your money?

You cannon earn interest from a credit card if you have a positive credit account. The bank will simply give you a refund if you have overpaid.


When interest rate is positive what happens to value of money?

Decreases


When interest rate is positive what happens to the value of money as?

decreases


What interest rate do you need to double 500?

Any positive rate of interest - as long as you leave the money invested for long enough.


Negative and positive consequences of national interest?

There are no positive or negative effects. This question should never be asked.


Do interest groups perform positive functions for government officials?

Interest groups do not perform positive functions for government officials because they stir thoughts and encourages people to battle against what the government officials want to do.


Why is youth hockey so popular today?

Good, positive marketing and personal interest.


Interest group that works for the public good is grass roots?

Grass root means of or from the common people, the average voter The answer you seek is public interest group (i think, 99% positive)


What are some positive things that political interest groups have done for the country and government?

None of your business


Is the present value interest factor always negative?

No, the present value interest factor (PVIF) is not always negative; in fact, it is typically a positive value. The PVIF is calculated using the formula ( PVIF = \frac{1}{(1 + r)^n} ), where ( r ) is the interest rate and ( n ) is the number of periods. Since both ( (1 + r) ) and ( n ) are positive, the PVIF itself is also positive, representing the present value of future cash flows.