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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

As SLR rises the banks will be restricted to pump money in the economythereby contributingtowards decrease in money supply

will restrict the banks to pump money in the economythereby contributingtowards decrease in money supply

a current account deficitwill resultin a decrease in the money supply

OK reserves ... will contractcausinga decrease in the money supply

making less loansresultingin a decrease in money supply

will make fewer loansresultingin a decrease in money supply

We can not spend foreign exchange reserves too actively ,will causea decrease in the money supply

what phase of the business cycle ... most likelyto resultin a decrease in the money supply

When the Fed sells government securities , the banks reserves will decrease and lending will contractcausinga decrease in the money supply

When the Fed sells government securities , the banks ' reserves decrease and lending will contractcausinga decrease in money supply

By the same logic , if we raise the interest rate then the demand for new loans would automatically declineleadingto a decrease in money supply

If money and credit are restricted , banks will have less money to lendcausinga decrease in the money supply

less money for lendingwould leadto a decrease in money supply

reserve requirements ... will contractcausinga decrease in the money supply

investments made by the country in other countriesresultsin reduction in money supply

the short runcausesa decrease in the money supply

operahionsresultingdecline in the money supply

Selling treasurywill leadto decrease in money supply

a currencyresultingfrom a decrease in the money supply

When they want to lower down the inflation , discount rate will increasecausesthe decrease of money supply

Deflation ... only that decline in consumer pricesresultsfrom a decrease in the money supply

reduction in crrleadsto Decrease In money supply

real exchange rate depreciationleadto significant decrease in money supply

the increasing of BI ratewill causethe decreasing of money supply

the aggregate demand - aggregate supply modelwill causea decrease in the money supply

debts repaid to bankswill resultin a decrease in the money supply

the money is extinguishedcausinga decrease in the money supply

Federal Reservewill resultin a decrease in the money supply

In effect , a positive interest rate in this model would amount to increasing money supply and a negative interest ratewould resultin decreasing money supply

When they want to decrease the inflation , discount rate will increasecausesthe decrease of money supply

an increase in exchange ratewill leadto decrease in money supply

You can not really tell people buying a house for speculation or for consumptionBy the way , high frequency trading increased money flow speedthus will causemoney supply decrease

The closing of over 9,000 American banks between 1930 and 1933resultedin a decrease in the money supply

an increase in the interest ratecan causea decrease in the money supply

which means the money disappears as if it never existedcreatinga decrease in the money supply

What actionswould resultin a decrease of money supply

bad " deflation(passive) caused bybad " deflation

to deflation very rapidlyleadsto deflation very rapidly

price deflation of coursecan causeprice deflation of course

to deflation , which is really badleadsto deflation , which is really bad

A decrease in price level ( deflation(passive) is causedA decrease in price level ( deflation

interest rates to rise the increase in interest ratescausesinterest rates to rise the increase in interest rates

to increase the interest rate in the economyleadsto increase the interest rate in the economy

interest rates to rise 2causesinterest rates to rise 2

interest rates to rise , not fallcausesinterest rates to rise , not fall

to the deflation that raised the real interest rate to extraordinary levelsledto the deflation that raised the real interest rate to extraordinary levels

an increase in interest rates in the market overalldoes ... causean increase in interest rates in the market overall

to the increase of interest rate which results in the decrease of investmentleadsto the increase of interest rate which results in the decrease of investment

a ... a decrease in output and an increase in the real interest ratewill causea ... a decrease in output and an increase in the real interest rate

to an increase in the interest rates and an increase in the money supplyleadsto an increase in the interest rates and an increase in the money supply

A ) interest rates to decline initially.72causesA ) interest rates to decline initially.72

inflation or a recessionto preventinflation or a recession

inflation ( disinflation / deflation ) and forces central bank to tighten ( ease ) the monetary policy , which is detrimental ( supportive ) to equity returnswill ... createsinflation ( disinflation / deflation ) and forces central bank to tighten ( ease ) the monetary policy , which is detrimental ( supportive ) to equity returns

to a current account surplus in the balance of payment 2has ledto a current account surplus in the balance of payment 2

to the increased interest ratesleadsto the increased interest rates

interest rates to rise , investment and consumption expenditures to fall , and thus reduce aggregate demand and inflationary pressureswould causeinterest rates to rise , investment and consumption expenditures to fall , and thus reduce aggregate demand and inflationary pressures

DeflationA general decline in the prices of goods and services ,(passive) often caused byDeflationA general decline in the prices of goods and services ,

an increase in interest rate ... fall in investment and aggregate demand leading to lower inflation and possibly lower GDPwould causean increase in interest rate ... fall in investment and aggregate demand leading to lower inflation and possibly lower GDP

to higher interest rates , which reduce investment and thereby lower output throughout the economy.[54would leadto higher interest rates , which reduce investment and thereby lower output throughout the economy.[54

to higher interest rates , which reduce investment and thereby lower output throughout the economy.[52would leadto higher interest rates , which reduce investment and thereby lower output throughout the economy.[52

the real interest rate to and output to in the short runcausesthe real interest rate to and output to in the short run

no change in either the real interest rate or outputwill causeno change in either the real interest rate or output

an increase in the interest rate and a decrease in desired investment therefore causing a leftward shift of the AD curve www.notesolution.comcausesan increase in the interest rate and a decrease in desired investment therefore causing a leftward shift of the AD curve www.notesolution.com

the real interest rate to run , before prices adjust to restore equilibriumcausesthe real interest rate to run , before prices adjust to restore equilibrium

to a decrease in consumer spendingwill leadto a decrease in consumer spending

the exact opposite processcausesthe exact opposite process

the price level to fall and cause an increase in the real interest rate 3will causethe price level to fall and cause an increase in the real interest rate 3

to a current account surplus in the balance of paymentswill leadto a current account surplus in the balance of payments

a corresponding decrease in production / employment causing a recession insteadcauseda corresponding decrease in production / employment causing a recession instead

nominal interest rates to FALL ... not rise ... because the anticipated inflation rate will fall eventuallywill causenominal interest rates to FALL ... not rise ... because the anticipated inflation rate will fall eventually

a decrease ( leftward shift ) of the aggregate curve Other notable aggregate demand determinants include interest rates , inflationary expectations , and the federal deficitcausesa decrease ( leftward shift ) of the aggregate curve Other notable aggregate demand determinants include interest rates , inflationary expectations , and the federal deficit

a lowering of prices(passive) caused bya lowering of prices

prices to fallcauseprices to fall

to a decline of the prices that ’s too strong and creates a risk for the production - for exampleleadsto a decline of the prices that ’s too strong and creates a risk for the production - for example

even higher interest rates(passive) caused byeven higher interest rates

to a reduction in the levels of pricesleadsto a reduction in the levels of prices

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Smart Reasoning:

C&E

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