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What happens when the bonds supply curve becomes negatively sloped?
Wiki User
∙ 12y ago
when we use the "loanable funds frame work" the Bs become negative.\
Supplying a bond = demanding a loan = demanding loanable funds.
Demanding a bond = supplying a loan = supplying loanable funds.
Wiki User
∙ 12y ago
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Why is the demand curve negatively sloped?
The demand curve is negatively sloped to represent the declining marginal utility from consumption. At greater quantities of consumption each additional unit of a good consumed will yield relatively less utility, thereby reducing the marginal willingness to pay for that good.
What happens to the value of money if an ulimated supply of currency is injected into the economy?
it becomes worthless
Why supply curve is positively sloped?
Increasing population creates increasing demand for goods
What is the key difference between the classical and Keynesian aggregate supply functions?
Classical Aggregate Supply function is vertical whereas the Keynesian Aggregate Supply function is positively sloped.
What happens to supply when input coasts go up?
It decrease because the good becomes more expensive to produce .
Why is the demand curve negatively sloped?
The demand curve is negatively sloped to represent the declining marginal utility from consumption. At greater quantities of consumption each additional unit of a good consumed will yield relatively less utility, thereby reducing the marginal willingness to pay for that good.
What happens to the value of money if an ulimated supply of currency is injected into the economy?
it becomes worthless
Why supply curve is positively sloped?
Increasing population creates increasing demand for goods
What is the key difference between the classical and Keynesian aggregate supply functions?
Classical Aggregate Supply function is vertical whereas the Keynesian Aggregate Supply function is positively sloped.
Why the aggregate supply curve has its particular shape?
The aggregate supply curve is positively sloped because at a higher price level, producers are more willing to supply more real output.
What happens to supply when input coasts go up?
It decrease because the good becomes more expensive to produce .
How can suppliers affect a business both positively and negatively?
How does supply have an impact on prices both positively and negatively?
Why is the short run supply curve positively sloped?
The short run supply curve is positively sloped because it has positive outputs.The profits are high and maximised.Short run decision for a firm is the quickiest and the most risky way to maximise profits in the short period of time.In the short run decision profits are usually reached which means that the firm didn't loose so the curve must be positively sloped as the firm is not in minus. hope I helped.....
When according to the law of supply and demand when supply increases what else happens?
According to the law of supply and demand when supply increases, prices will decrease.
Are children affected negatively by a large population?
Depends on the total supply of food & other necessities.
What happens to price if supply increases?
Supply will increase.
What is the difference between a supply curve and a supply schedule?
The supply schedule just gives you the information of the Supply curve in a box, with the respective supply and its price producers want to sell their good. Remenber, This is for the supply only - dont mix them up with the supply and demand charts. The more the producer supplies the market ---> the more they want to sell their goods for. That is why it is sloped upwards. Anyways the Supply curve is just the chart or whole drawing of the supply side.
