1- Investors create the ---------- for capital. (Fill in the blanks) 2- JM Keynes believed that...

1- Investors create the ---------- for capital. (Fill in the blanks)
2- JM Keynes believed that during the Great Depression there was an------------------supply of capital.This results from the interest rate being fixed for some reason----------------its market equilibrium level. (Fill in the Blanks)
3- Traditional monetary policy is ineffective when nominal interest rates have reached a---------------lower bound. JM Keynes referred to this situation as a liquidity----------------(Fill in the blanks)
4- Suppose that whenever total income increases investment and saving increase by the same amount at any interest rate. Then which statement is correct:

a- The IS curve is perfectly vertical.

b- The IS curve would be flat (horizontal).

c- The IS curve would slope downward.

d- The IS curve would slope upward.

e- Fiscal policy is ineffective.

Expert Solution

1. Investors create the finance/demand for capital.

The firms invest in capital when investors are willing to invest in the capital.

2.Keynes believed that during great depression, there was an Excess Supply of capital. This results from interest rate being fixed for some reason Below its equilibrium level.

3. Traditional monetary policy is ineffective when nominal interest rates have reached a Minimum/horizontal lower bound. JM Keynes referred to this situation as liquidity Trap.

4. The correct statement is B. When Is curve is horizontal, the increase in investment and total saving is same as the total income increase.

Rahul Sunny answered 1 year ago

Fill in the blanks: and interact to create risk (note: order is not important)....

Fill in the blanks: ________ and ________ interact to create risk (note: order is not important). A) Threats, Consequences B) Hazards, Vulnerabilities c) Likelihoods, Consequences Question 2 Which of the following best describes a dormant hazard A) A situation wherein the hazard is in the position to affect persons, property, or environment B) A situation wherein the hazard is certain to cause loss C) A situation that has the potential to be hazardous, but nothing of value is exposed to...

Fill in the blanks in the problem with the 1 or 2 digit numbers from above:...

Fill in the blanks in the problem with the 1 or 2 digit numbers from above: A mass of ______ kg is attached to a spring, and stretches it by _____ cm. The mass is then pulled to a distance of ______ ?? below the spring’s equilibrium length, and given a downward velocity of ________ ?/? . Note: you may assume normal Earth gravity (g=9.8 m/s2 ) and that the spring is undamped. 1) What is the spring constant? 2)a)...

I. Fill in Blank / Matching Fill in the blanks with the appropriate terms below. (2...

I. Fill in Blank / Matching Fill in the blanks with the appropriate terms below. (2 pts. each = 20 pts.) activity chemical resonance polychromatic empirical electrons evaporation emission filtration filtrate gas hydrogen VESPR limiting liquid mass mass percent mole molecular oxide absorption oxygen physical precipitate precipitation monochromatic Lewis Dot supernatant periods groups Many metals react readily with oxygen to form binary ____________ compounds. ...

Java- Fill in the blanks Print numbers 0, 1, 2, ..., userNum as shown, with each...

Java- Fill in the blanks Print numbers 0, 1, 2, ..., userNum as shown, with each number indented by that number of spaces. For each printed line, print the leading spaces, then the number, and then a newline. Hint: Use i and j as loop variables (initialize i and j explicitly). Note: Avoid any other spaces like spaces after the printed number. Ex: userNum = 3 prints: 0 1 2 3 -------------------------------------------- public class NestedLoop { public static void main...

2. For each of the following sentences, fill in the blanks with the best word or...

2. For each of the following sentences, fill in the blanks with the best word or phrase in the list below. Not all words or phrases will be used; use each word or phrase only once During transcription in __________________ cells, transcriptional regulators that bind to DNA thousands of nucleotides away from a gene’s promoter can affect a gene’s transcription. The __________________ is a complex of proteins that links distantly bound transcription regulators with the proteins bound closer to the...

1. Fill in the blanks: Bile is produced by the _________ and stored and concentrated in...

1. Fill in the blanks: Bile is produced by the _________ and stored and concentrated in the _______. 2. Folds of the small intestinal mucosa are known as: a. microvilli b. circular folds c. intestinal crypts d. villi 3. True/False: Mark the following statements as true (T) or false (F). If the statement is false, correct it so it becomes a true statement. ____ a. The peritoneal cavity is located between the visceral peritoneum and the mesentery. ____ b. The...

1. A) Fill in the blanks: Faciliated diffusion requires a _____________________ for a solute to be...

1. A) Fill in the blanks: Faciliated diffusion requires a _____________________ for a solute to be transported down its concentration gradient. This is due to __________ or _________________ limitations B) How do transport proteins become saturated? How does this affect the rate of facilitated diffusion?

Fill in the blanks with numbers to complete the following equivalences 1._ km=_m 2. _um=_m

For optimal alignment of 2 sequences, fill in the blanks for the following dot plot:

For optimal alignment of 2 sequences, fill in the blanks for the following dot plot:a) A diagonal move indicates 2 residues are___b) A vertical move indicates a ___c) A horizontal move indicates an ___

1. Fill the blanks. 1. The price of cereal and the demand for milk have a...

1. Fill the blanks. 1. The price of cereal and the demand for milk have a ...(1)... relationship. 2. Income tax and the demand for air travel have a ...(2).... relationship. Select one: a. 1. Positive & 2. Positive b. 1. Positive & 2. Negative c. 1. Negative & 2. Positive d. 1. Negative & 2. Negative e. These variables have a neutral relation, which means that they do not affect each other 2. What would happen if the price...

Question