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Q: How increase in reserves affects the equilibrium interest rate?
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An increase in interest rates affects aggregate demand by?

An increase in interest rates decreases the aggregate demand shifting the curve to the left.


What are the risks of having a high interest rate?

Having a high interest rate greatly affects the account it belongs to. It will add up to high finance charges which will increase the balance, increase the monthly payment, and lower the amount of the payment that applies to the principle.


How does migration affect the genetic equilibrium of a population?

Migration affects the genetic equilibrium of a population by maintaining it.


What are the factors that drives interest rate up?

Factors that greatly affects interest rate, whether an increase or decrease, are economic and political stability. To list a few: Country's Inflation (exchange rate). Country's legislative changes.


What is the effect of temperature on conversion value in cstr?

Temperature affects the conversion value in a CSTR in two ways: 1) it should increase the rate of conversion 2) it should shift the equilibrium of the reaction note that in shifting the equilibrium, it shifts the equilibrium of ALL reactions including side reactions which can be suppressed or promoted If the reaction is nearing equilibrium prior to exiting the reactor, the second effect can be very significant. Increasing the rate of conversion could allow faster throughput in the reactor with the same conversion - unless the effect on equilibrium shift is significant


How would the equilibrium concentration of H2O be affected by adding a catalyst to the mixture?

None. A catalyst affects only the rate of reaction, and if the reaction is already at equilibrium, the net rate of the reaction is zero and remains so after a catalyst is added.


How does the inflation rate affects the interest rates in India?

since the prices continues 2 increase. The poorer become more poor and rich people bcum more rich.Hence it affects the banks n the intrest rate goes high.


How does increase in value of pounds affects aggregate demand?

how does increase in value of pounds affects sterling affect american businesses?


What are the Methods of monetary policy?

The Monetary Policy Committee have at their disposal 2 methods of monetary policy 1. Interest Rates, 2. Money Supply 1. Interest rate GENERAL INFO The interest rates determine the profit earned from savings and the cost of a loan. The US rate is 2% at the moment, so your savings in the US probably give you a profit of 1.5% per year If you borrowed money from a bank you would probably pay around 2.5% per year. HOW IT WORKS The interest rate directly affects the disposable income of a consumers (income - tax - bills). An increase in interest rates makes savings more profitable and makes loans more costly. AN INCREASE (DECREASE) IN INTEREST RATES WILL DECREASE (INCREASE) CONSUMER SPENDING 2. Money supply Money supply can be defined in to ways. The amount of your currency in circulation (eg the total money that can be accessed by members of your population. Or the total value of every printed note in circulation (includes foreign countries). Money supply works with interest rates to maintain equilibrium. EG. When you increase interest rates, you reduce the demand for money. In this instance the demand for money is less than the supply of money. In order to restore equilibrium, the government must withdraw money from circulation (buy selling bonds) thus reducing money supply


How the amount of gas affects its volume?

The volume increase when the amount of gas increase.


How does subordination affect the interest rate on a bond?

Subordination affects the interest rate on a bond because it is unsecured and has lesser priority than that of an additional debt claim on the same asset. It has higher interest rate required to compensate for the higher risk. If interest rate has been increased the price of the bond will fall. If the price of the bond falls, the yield that can be earned will increase.


Does gender affects reading?

No. Attention span, interest in subject, and reading disorders (i.e. dyslexia) affects reading.