Please check the answer and add explanation properly at every steps and solve steps wise How many of the following shifts the LM curve out? i ) open market sales by the central bank ii ) a rise in the discount rate iii ) prevention of using fin - techs in everyday transactions A ) none of i ) - iii )  B ) one of i ) - iii )  C ) two of of i ) - iii )  D ) all of i ) - iii )

Your mother states that lowering interest rates in the recessionary COVID-19 period is good policy because it will guarantee consumers will spend more as it is cheaper to borrow money. Do you agree or disagree with her statement? Provide two reasonings to justify your answer.

(i) Why does the W–M–M theorem hold in the analysis of Chapter 22 but not in the analysis presented in this chapter? What is the critical difference in the assumptions that changed this finding and what is your own assessment of their plausibility? Does the W–M–M theorem hold or not hold in modern developed economies? Does it do so in the LDCs with poorly developed financial markets? Discuss.(ii) If currency (a fiat money) is intrinsically useless for firms and households, are demand/checking deposits also intrinsically useless for them? Why, then, do they hold these when there are other highly liquid assets such as savings deposits and money market mutual funds (MMMF) that offer higher returns than demand deposits? If the only demand for checking deposits is for holding savings, as in the OLG models of money, why do banks offer such checking accounts and not confine themselves to savings and term deposit accounts? Why do they offer the latter rather than…

Assume that increasing price levels cause the above shift in money demand. If the central bank desired to keep levels of investment consistent with those prior to the shift of MD, what would be their optimal solution using open market operations? a. Decrease the discount rate b. Increase the federal budget deficit  c. Enforce tariffs on imported resources  d. Increase money supply by purchasing securities e. Sell securities in order to increase borrowing activity

On the diagram sample (a) show the effect of increase in money demand (money supply is fixed) on equilibrium on Financial market and on LM curve On the diagram sample (b) show the effect of increase in money supply (money demand is fixed) on equilibrium on Financial market and on LM curve Hint: LM: M/P = Y*L(i)

explain what may be the short-term economic consequences of a decrease of the interest rate by the European Central Bank (ECB).

Consider the following equation log(gdp) = 2.65 +0.527 log(bankcredit) + 0.222FDI, where gdp refers to gross domestic product, bankcredit denotes bank credit, and FDI refers to foreign direct investment. A. If bank credit increases by 1%, by how much is gdp expected to increase, the level of FDI remaining constant? B. Find the approximate percentage increase gdp if FDI increases by 5, the amount bank credit remaining constant.

1. Explain the aggregate demand curve. If we consider CPEC as an autonomous investment, use the aggregate demand curve to explain why CPEC is crucial for economic growth in Pakistan.   2. Explain aggregate supply curve. Use the aggregate supply curve to explain the policies which government of Pakistan should adopt to increase Real GDP.   3.  According to IS-LM framework what policy should be adopted by State Bank of Pakistan to increase level of GDP/output. Give detailed explanation of your answer.

Assume Peter's preferences over time (periods are yearly) are given by U(c1, C2, C3, C4, ...) = In(c1) + Bln(c2)+ B²ln(c3)+... Assume that Peter can borrow or lend at the same rate r=10% and 1 1.15 Then, we know the following about how Peters consumption changes over time: Peters consumption declines the older he gets. Peters consumption increases the older he gets Peters consumption is constant over his life-time We can't tell anything about his consumption level because we have not been given any information about his income over his life-time.

5. Explain the major assumptions of the basic EOQ model.