The graph shows the demand for money curve. Draw the supply of money curve if the equilibrium interest rate is 4 percent a year. Label it MS. Draw a point at the equilibrium quantity of money and nominal interest rate. ... --- Nominal interest rate (percent per year) C 8- G 7- 6- G 5- 4- 3- 2- 0+ 3.8 3.9 4.0 MD 4.1 4.2 Quantity of money (trillions of dollars) >>> Draw only the objects specified in the question.

The graph shows the demand for money curve. Draw the supply of money curve if the equilibrium interest rate is 4 percent a year. Label it MS. Draw a point at the equilibrium quantity of money and nominal interest rate. ... --- Nominal interest rate (percent per year) C 8- G 7- 6- G 5- 4- 3- 2- 0+ 3.8 3.9 4.0 MD 4.1 4.2 Quantity of money (trillions of dollars) >>> Draw only the objects specified in the question.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Monetary Theory And Policy

Section: Chapter Questions

Problem 1.2P

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The graph shows a demand for money curve. Draw a new demand for money curve that shows the effect of an increase in real GDP. Label it MD₁. Draw a demand for money curve that shows the effect of an increase in the number of families that have a credit card. Draw this demand for money curve in relation to the original demand for money curve, MD. Label the new curve MD2. 12- 10- 8- Nominal interest rate (percent per year) 6- 4- 2- 0 2 4 6 8 MD 10 12 ☑ Quantity of money (trillions of dollars) >>> Draw only the objects specified in the question.
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