Starting in equilibrium, graphically show and discuss the effect on the equilibrium “price” and quantity of money if
(a) the Fed buys government bonds.
(b) the public’s currency deposit ratio falls.
(c) the desired reserve ratio of banks increases.|
(d) real output increases.
(e) expected inflation increases.
(f) yield on bonds and equities rise.
Get Answers For Free
Most questions answered within 1 hours.