Nominal interest rate
Quantity of money
MS
MD
i
q
List of factors that influence the money supply
List of factors that affect money demand
Assume that the central bank sells bonds. What will happen to the equilibrium nominal interest rate and quantity of money?
Assume that the central bank lowers the discount rate. What will happen to the equilibrium nominal interest rate and quantity of money?
Assume that the price level increases. What will happen to the equilibrium nominal interest rate and quantity of money?
Assume that the use of credit cards increases. What will happen to the equilibrium nominal interest rate and quantity of money?
Which of the following events will lead to an increase in the nominal interest rate and a decrease in the quantity of money?
Which of the following events will lead to a decrease in the nominal interest rate and an increase in the quantity of money?
Which of the following events will lead to an increase in the nominal interest rate and no change in the quantity of money?
Which of the following events will lead to a decrease in the nominal interest rate and no change in the quantity of money?