Explain the determinants of money supply in an economy?

Q: The speculative demand for money suggests that:

A: To find : What does Speculative demand for money suggests

Q: What are the three jobs of money?

A: Hi, thanks for the question. Since you posted multiple questions, we will answer for the first…

Q: All things been equal,how can increase in interest rate affect the demand for money? (a). Demand…

A: Demand for money represents the desire of people to hold financial assets in the form of cash and…

Q: What does an increase in the money supply create?

A: The total amount of monetary assets circulating in an economy during a particular period of time is…

Q: Show and explain the effects of an increase in Money supply in money market.

A: An increase in Money Supply is also termed as Expansionary Monetary policy. Suppose, the money…

Q: I want answer for these questions with typing please. Thanks   Explain why a market structure in…

A: 1. Money as medium of exchange: first of all money is used as measure of value, store of value,…

Q: according to the scale and substitution view of money, identify the factors that causes individual…

A: Money  People can get the things they need to survive thanks to money, which serves as a medium of…

Q: If a society chooses fiat money as its money form, it __________.

A: Fiat money:- Fiat money, also referred to as paper money, is a form of money that is not backed by…

Q: In terms of money’s function as a store of value, what is the problem with fiat money? Explain in…

A: find the detailed answer below.

Q: What is the opportunity cost of holding money? Explain Baumol-Tobin model of the demand for money.…

A: The opportunity cost of keeping money is the interest rate on an alternative asset that is foregone.…

Q: Political officials often call on the monetary authorities to expand the money supply more rapidly…

A: In short run, money is also like other commodity. The reason is, its increase in supply causes to…

Q: What are the difference between the Fisherian and Cambridge versions of the quan theory of money?

A: The quantity theory of money explains the factors which determine the general price level in the…

Q: Says law in money market may not hold if supply of money is a function of interest rate ( M= M +…

A: According to the Classical position, Say's Law hold in a money economy

Q: According to the Quantity Theory of Money, if the velocity of money is constant, and if the money…

A: ‘Nominal GDP’ is the monetary value to total goods & services produced in a year in a country,…

Q: what is the overall impact of lower interest rate on the money market

A: Interest rate changes can have a beneficial or negative impact on the markets. Central banks…

Q: 1. Outline the main determinants of the demand for money.

A: In an economy, demand for money refers to the requirement of money to households and businesses for…

Q: The monetary authorities in a country can choose to control either the interest rate or the money…

A: The money supply is determined on the basis of transaction demand for money. It means as transaction…

Q: 7. Economic commentators have pointed out that demand for money in a developed country is projected…

A: Money Demand: - The demand for money is the individual's desire to keep their assets in the form of…

Q: What is a definition of money and list 4 factors that affect the demand for money?

A: Answer is given below

Q: Explain the role of reverse repo rate in controlling the money supply in economy

A: According to the given question Money supply basically refers to the amount of the total stock of…

Q: Show that the Freidman's money equation is simply an extension of the general theory of demand for…

A: In monetary economics, the amount theory of money (QTM) states that the overall value level of goods…

Q: Explain in detail, with the aid of a graph, the two components of the demand for money. Identify the…

A: Two components of the demand for money are : Transactional demand : money which is kept for…

Q: What is money? Explain the definition in terms of the functions of money?

A: Money is anything that is generally accepted by the people in the economy and used for the purchase…

Q: For the last time, consider an economy described by the following information: Demand deposits total…

A: To calculate the actual amount: Money multiplier = 1/Reserve ratio To get the reserve…

Q: Discuss the functions of money and evaluate how theories of money demand explain them

A: Money functions as a means of trade, a store of value, a monetary unit and the exchange medium.…

Q: Please explain the difference between the transaction demand for money and the asset demand for…

A: Transaction demand of money refers to the demand for money that is cash and checking account balance…

Q: . What is the relationship between money demand and interest rates? What happens when the interest…

A: The entire quantity of money that an economy's population desires to hold is known as the demand for…

Q: is there any effects of digital money on money supply in the economy?

A: Digital money is a system used to pay or settle transactions through the Internet, and consists of a…

Q: 1. Explain with aid of a diagram what happens to the money supply, money demand, the value of money,…

A: Below is the diagram that shows the increase in money supply:

Q: What is Fiat Money

A: The value of currency notes and coins is derived from the guarantee provided by the issuing…

Q: Does a decrease in economic activity affect the money supply curve? If so how?

A: The economic activities of the economy are the main source of spending in the economy and this helps…

Q: how does the population affect circulation of money

A: The term population often refers to the number of people living in a certain place, such as a city…

Q: If the central bank sells $500 in bonds to a bank t hat has issued $10,000 in loans and is exactly…

A: Given : Initial loans =10,000 The reserve requirement's is 10 percent. Reserve that bank must hold =…

Q: Which of the following statements best explains why the money demand curve slopes downward? Select…

A: Demand for money refers to the amount of money an individual wish to hold. Demand for money curve is…

Q: Complete of the following sentences (fill in the blanks): A product that serves both as money and…

A: Money refers to the medium of exchange. Money is accepted as payments for goods and services in an…

Q: The demand curve for money is downward sloping because what?

A: The demand for money arises as people decide to hold their money in the form of cash or bank…

Q: What effect would the discovery of gold that fuels inflation have on the money market? Illustrate…

A: In the mentioned question we are asked about the effects of the discovery of gold on fuels inflation…