supply curves

What is the impact on the interest rate if central bank money is increased to $2500 (million)? Show the equilibrium interest rate on a diagram with money demand and supply curves.

Macro Economics QUESTIONS Q1 First, explain why the money demand curve is downward sloping. Second, graphically illustrate and explain what factor(s) will cause shifts in the money demand curve. Explain what effect changes in interest rate and nominal GDP have on the demand for central bank money. Q2 Explain what types of policies a central […]

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