the rate beyond which the preference between two independent projects reverses is known as?
Answers
Answered by
2
The rate beyond which the preference between two independent projects reverses is known as Reversal rate
Reversal rate is referred to as the rate at which the intended effect of accommodative monetary policy is reversed which eventually results in the contraction of the economies.
There are certain important determinants of reversal rates such as:
• Holdings of bank assets
• Constraint strength
• The degree of the rate of interest
• Bank capitalization
Similar questions