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What is the short-run and long run-effects of the central bank lifts interest rates Using an aggregate demand demand and aggregate supply diagram?
Wiki User
∙ 15y ago
wen der is an increase in interest rate, d government uses as a means to reduce borrowing n in the long run it curbs inflation, because der will be low investment
Wiki User
∙ 15y ago
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Definition of equilibrium income?
This is established where aggregate quantity supplied is equal to aggregate quantity demanded. It is the central tendency of real income that equates the plans of consumers with those of producers. It is a stable level of income, so long as the various factors in the model DO NOT change.
How does the central banks control the interest rates?
Central banks control interest rates by altering the repo rate. Repo rate is the rate at which banks borrow money from the central bank. So if the central bank hikes the repo rate, the banks will automatically hike their lending rates. similarly if the central bank reduces the repo rate, banks will lower their lending rates too.
For what reason did the Central Bank reduce the interest rates?
Central banks have control of the prevailing interest rates in the country and they usually reduce or increase them to maintain the country's economic status. If the country is having high inflation then the central bank would increase the interest rates to suck in excess cash from the markets and to reduce rates of essential commodities. Similarly, when the country is in a economic crisis, they might reduce interest rates to make borrowing cheaper and to promote spending.
Role of central bank in economic development?
Central banks play a huge role in economic development. They manage a state's money supply, currency, and interest rates.
Can a central bank control domestic interest rates and fix their exchange rates at the same time?
I just need an answer
Who is the central interest of accounting?
the central interest of accounting
Definition of equilibrium income?
This is established where aggregate quantity supplied is equal to aggregate quantity demanded. It is the central tendency of real income that equates the plans of consumers with those of producers. It is a stable level of income, so long as the various factors in the model DO NOT change.
Which of the following is a device used at the edge of the network to aggregate DSL circuits together onto one ingress circuit that connects to the central switch site?
DSLAM
What is a fun place of interest in the central plains?
the L.B.J park is fun try there
What has the author Joseph L Tryon written?
Joseph L. Tryon has written: 'The coordination of sectoral and aggregate plans' -- subject(s): Central planning, Economic policy
How does the central banks control the interest rate?
Central banks control interest rates by altering the repo rate. Repo rate is the rate at which banks borrow money from the central bank. So if the central bank hikes the repo rate, the banks will automatically hike their lending rates. similarly if the central bank reduces the repo rate, banks will lower their lending rates too.
How does the central banks control the interest rates?
Central banks control interest rates by altering the repo rate. Repo rate is the rate at which banks borrow money from the central bank. So if the central bank hikes the repo rate, the banks will automatically hike their lending rates. similarly if the central bank reduces the repo rate, banks will lower their lending rates too.
For what reason did the Central Bank reduce the interest rates?
Central banks have control of the prevailing interest rates in the country and they usually reduce or increase them to maintain the country's economic status. If the country is having high inflation then the central bank would increase the interest rates to suck in excess cash from the markets and to reduce rates of essential commodities. Similarly, when the country is in a economic crisis, they might reduce interest rates to make borrowing cheaper and to promote spending.
Are the central banks push up interest rate too high and too quick?
yes
What are the current interest rates for Central Mortgage Company?
Current interest rates for Central Mortgage Company are different depending on one's credit history and the length of the loan. There are no exact numbers listed online but it is around 6.5%. One may call 1-800-366-2132 for any questions regarding interest rates.
How can increase in interest rate be prevented?
It depends what country you're in.Most commonly, the Central Bank has the right tools (decreasing general interest rate towards national banks) to prevent the increase in interest rates.
Role of central bank in economic development?
Central banks play a huge role in economic development. They manage a state's money supply, currency, and interest rates.
