what is the kinked demand curve, how do we et it? what makes the CML kinked? is cash an asset class? describe neoclassical growth theory money multiplier – what is the underlying theory (hint: formula = M/B = 1+c)/(R+C) boom! 90 secs on each max
Kinked demand curve is function of oligopoly. Companies will likely follow with a price cut but not a price increase (or is it the other way around) CML is kinked is borrow/lending rates are different Cash… sure… why the heck not. Neoclassical growth speaks to decreasing margin growth through investment over time… counter to endogenous growth model. Money base is a function of currency, coinage, etc… but also a function of the reserve requirement and how much people hold themselves… the currency drain.