A macroeconomic Theory of the Open Economy, Supply and demand for Essay

A macroeconomic Theory of the Open Economy, Supply and demand for Loanable Funds and for Foreign-Currency Exchange - Essay Example To balance the condition and allow the exchange, there is demand for the funds by the borrowers when they sell the bond that they have to the savers. An exchange in any market can only occur if there are demanders and suppliers. The funds consist of the loans from the banks and savings saved by the consumers foregoing consumption. Therefore to save involves a sacrifice and the savers in exchange demand for compensation for the best alternative foregone had they consumed the funds instead of saving them. The concept of compensation and incurring a cost is, therefore, is very important for the sustainability of the funds market (McConnell, Campbell, Brue and Stanley 92). The loanable funds are usually used for investment in new capital goods bringing about the concept of the supply and demand for the funds. The lenders bring about the supply curve that is upward sloping from left to right while the borrowers bring about the demand curve that is downward sloping from the left to the right. The curves are guided by the principle of demand and supply which states that, supply increases with the increase in the price while demand increases with a decrease in price. The conflicting ideologies calls for an equilibrium where the two intersect and those to make a decision agree. The interest rate is the sacrifice or cost of borrowing the loanable funds from the suppliers and it is the value of money that a person pays for using the dollar for one year. It is also the benefit or compensation to the person or entity supplying the funds. The rate of interest is usually expressed as a percentage of annual funds spend or borrowed. When dealing with the loanable funds one considers the interest rate which is adjusted for inflation to take care of the price changes. It is essential to ponder on the rate of interest that is real than a nominal one that has

Evaluate the extent to which the methods of justification employed by Essay

Evaluate the extent to which the methods of justification employed by Kant in his Groundwork of Metaphysics of Morals provide models for other theories of justi - Essay Example ) can be achieved only with if based on the observation of the actions from an objective point of view and not a critical one because in this case there is the possibility that certain behaviours could be characterized as hostile to the general social framework, an action which should be avoided – at least at the primary stage of the behavioural analysis. Current paper deals with the identification of any possible element of Kant’s work – particularly the Metaphysics of Morals – which can be used as a substantial theoretical source for the support of other theories of justification. In order to achieve the above task the paper has been divided in three parts. Part One presents the methods of justification used by Kant in Metaphysics of Moral. A general overview is also made regarding the value of Kant’s work for the researchers in the area of moral philosophy. Part Two refers to the theories of justification used by other philosophers, like Rawls and Hare. The idea of utilitarianism is also presented in this part in order to explain the stages of development of moral theory in the history. Finally, Part Three summarizes the views presented in the above two parts in an effort to identify the possible relation between the methods of justification used by Kant and those applied by other theorists in the area of moral philosophy. It is also examined to which level the first ones could be used as models for the second ones. In order to understand the Kant’s perceptions regarding the justification applied in all aspects of human behaviour we should primarily refer to the two fundamental ‘formulae’, which are in fact the theoretical framework on which Metaphysics are based. More specifically, in accordance with Kant the following two formulae can support the interpretations of human behaviour as presented throughout his work: a) the Formula of Universal Law : â€Å"Act only on that maxim through which you can at the same time will that it should become a