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.
a decrease in the money supply
A change in monetary policy typically takes between six months to two years to significantly influence aggregate demand. This lag occurs due to the time it takes for policy adjustments, such as interest rate changes, to affect borrowing, spending, and investment decisions by consumers and businesses. Additionally, factors like expectations and economic conditions can further extend this time frame. Overall, the exact duration can vary based on the specific economic context and the nature of the policy change.
The time between a market change that makes investment profitable and actual demand for investment
the cost of borrowing money
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.
a decrease in the money supply
A change in monetary policy typically takes between six months to two years to significantly influence aggregate demand. This lag occurs due to the time it takes for policy adjustments, such as interest rate changes, to affect borrowing, spending, and investment decisions by consumers and businesses. Additionally, factors like expectations and economic conditions can further extend this time frame. Overall, the exact duration can vary based on the specific economic context and the nature of the policy change.
the private investment multiplier is the change in national income resulting from a change in private investment spending
The time between a market change that makes investment profitable and actual demand for investment
Sure
no
the cost of borrowing money
the cost of borrowing money
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
your mom can change it
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.