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Assume money supply increases at rate z. Explain what seigniorage is. Use formulas. What are the factors that can increase the seigniorage?
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- By using graphs, show and explain how an increase in money supply can affect the goods market by taking the link between two markets into account.Based on these motives, what variables did he think determined the demand for money? (Check all that apply.) A. Nominal interest rate. B. Income. C. Price level. D. The risk of losing money.When the interest rate falls , other things remaining the same, what change occurs in the market for money? The opportunity cost of holding money _______ and _______. A. rises ; the demand for money decreases B. rises ; the quantity of money demanded decreases C. falls ; the quantity of money demanded increases D. falls ; the demand for money increases
- Which of the following statements is false A. Money is not a comsumption or a capital good B. An increase in the money supply does not confer a general benefit on society C. Economic theory cannot tell us generally which groups benefit and which groups are injured by inflation D. Economic theory cannot tell us the supply of money that is proper for an economy to haveAssume the supply of money is fixed by the authorities. Show how the money market equilibrium interest rate rises when income increasesExplain the determinants of money supply in an economy?
- The demand for liquid cash in the economy is based on _____________ Select one: a. Interest rates & average prices in the economy b. Credit card facility c. All of the above d. ATM machine availabilityA student who cashes a check at the student union in order to go shopping illustrates anexample of thea. Transaction demand for money.b. Speculative demand for money.c. Precautionary demand for money.d. Income effect.e. Substitution effect.All else equal, suppose the interest rate rise from 3% to 3.5%. What will happen in the supply of money? a. Shifts to the right. b. Shifts to the left. c. An upward movement along the supply curve. d. An downward movement along the supply curve. e. The supply will remain unchanged.
- Write a money demand function and explain the determinants of money demand.If banks start paying higher interest rates on checking accounts, we would expect, assuming everything else held equal, Group of answer choices a) the demand for money to become more sensitive to changes in the interest rate. this is not correct b) the demand for money to become horizontal. c) the relationship between interest rates and the demand for money to be unaffected. d) the demand for money to become less sensitive to changes in the interest rate. e) a decrease in the supply of money.Show and explain the effects of an increase in Money supply in money market.
