Explain What Effect an Increase in the Future Expected Interest

question 9

Essay

Explain what effect an increase in the future expected interest rate will have on the IS curve and LM curve in the current period.

---

Definitions:

Lone Pair Electrons

Electron pairs in the outermost shell of an atom that are not shared or bonded with another atom, influencing molecular shape and reactivity.

Pyridine

A basic heterocyclic organic compound with the chemical formula C5H5N, resembling benzene but having a nitrogen atom replacing one of the carbon atoms.

Orbital

A region in an atom where there is a high probability of finding electrons.

Increasing pKa

This refers to the process or trend of increasing the acidity constant (pKa), indicating a decrease in acid strength.