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Q: What change in monetary policy could eventually cause over borrowing and over investment?
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A change is the money supply will change investment when?

Monetary policy will never be effective if interest rates: not respond to a change in the money supply, and investment spending does not respond to changes in the interest rate.


What change in monetary policy could eventually cause overborrowing and overinvestment?

a decrease in the money supply


What are lags in investment demand?

The time between a market change that makes investment profitable and actual demand for investment


The Federal Reserve can change the interest rate to help the economy What is the interest rate?

the cost of borrowing money


Difference between static and dynamic multiplier?

The concept of static multiplier implies that changes in investment causes change in income instantaneously. It means that there is no time lag between the change in investment and the change in income. It implies that the moment a rupee is spent on investment project, society's income increases by a multiple. Let us explain the concept of the dynamic multiplier also known as period and sequence multiplier. The concept of dynamic multiplier recognizes the fact that the overall change in income as a result of the change in investment is not instantaneous. There is a gradual process by which income change as a result of change in investment or other determinants of income. The process of change in income involves a time lag. The multiplier process works through the process of income generation and consumption expenditure. The dynamic multiplier takes into account the dynamic process of the change in income and the change in consumption at different stages due to change in investment. The dynamic multiplier is essentially a stage-by stage computation of the change in income resulting from the change in investment till the full effect of the multiplier is realized

Related questions

A change is the money supply will change investment when?

Monetary policy will never be effective if interest rates: not respond to a change in the money supply, and investment spending does not respond to changes in the interest rate.


What change in monetary policy could eventually cause overborrowing and overinvestment?

a decrease in the money supply


What is the private investment multiplier?

the private investment multiplier is the change in national income resulting from a change in private investment spending


What are lags in investment demand?

The time between a market change that makes investment profitable and actual demand for investment


Can you change investment vehicles within a irrevocable trust?

no


Do you have any suggestions on if and how the IMF might change its tight monetary policy?

Sure


The federal reserve can change the interest rate to help the economy. What is the interest rate?

the cost of borrowing money


The Federal Reserve can change the interest rate to help the economy What is the interest rate?

the cost of borrowing money


Difference between static and dynamic multiplier?

The concept of static multiplier implies that changes in investment causes change in income instantaneously. It means that there is no time lag between the change in investment and the change in income. It implies that the moment a rupee is spent on investment project, society's income increases by a multiple. Let us explain the concept of the dynamic multiplier also known as period and sequence multiplier. The concept of dynamic multiplier recognizes the fact that the overall change in income as a result of the change in investment is not instantaneous. There is a gradual process by which income change as a result of change in investment or other determinants of income. The process of change in income involves a time lag. The multiplier process works through the process of income generation and consumption expenditure. The dynamic multiplier takes into account the dynamic process of the change in income and the change in consumption at different stages due to change in investment. The dynamic multiplier is essentially a stage-by stage computation of the change in income resulting from the change in investment till the full effect of the multiplier is realized


An outside force that can eventually change a musical culture is?

your mom can change it


Is it possible for the stars in the Milky Way galaxy to be in perfectly balanced orbits that do not get larger or smaller?

No. The stars will influence each other gravitationally, and eventually change their orbits.No. The stars will influence each other gravitationally, and eventually change their orbits.No. The stars will influence each other gravitationally, and eventually change their orbits.No. The stars will influence each other gravitationally, and eventually change their orbits.


How does the occupational outlook affect the monetary benefits of a career?

If there are changes to the responsibilities in a career,the typical income will change