63 782
Assignments Done
99,2%
Successfully Done
In August 2018

Answer to Question #54162 in Macroeconomics for marcha

Question #54162
suppose ha he money demand function is (M/P)d =1000-100r, where r is he interest rate in percent. the money supply M is 1000 and the price level P is N$2.
a) graph the supply and demand for real money balances.
b)what is the equilibrium interest rate?
c) assume that the price level is fixed. what happens to the equilibrium interest rate if the supply of money is raised by 39%?
d) if the Fed wishes to raise the interest rate to 7%, what money supply should it set?
Expert's answer

Answer in progress...

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions