None Suppose that the supply of credit cards is given by (1/201) X =q, the nominal interest rate is 0.09, real GDP is Y = 53,and the price level is P = 101. What must be the quantity of money supplied for this money market to be in equilibrium.Round your answer to the nearest whole number.

To find the quantity of money supplied for the money market equilibrium, we can use the equation of…

Answered: Suppose that the supply of credit cards…

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 17QP

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Suppose that the supply of credit cards is given by (1/200) X = q, the nominal interest rate is 0.06, real GDP is Y = 52, and the price level is P = 105. What must be the quantity of money supplied for this money market to be in equilibrium. Round your answer to the nearest whole number.
Assume the supply of money is fixed by the authorities.
Suppose you receive Tk. 10,000 from your grandmother and deposits the money in a saving account. your grandmother gave you the money by writing a check on her saving account. Would the maximum increase in the money supply still be what you found it to be in part a) where you received the money from the sky? Why or why not? can anyone explain please why it will change
Determine whether the statement is TRUE or FALSE based on the concept of money supply. “If a commercial bank receives a currency deposit, cash is taken out of circulation. Thus, there will be a decrease of money supply.”
When a consumer withdraws cash from a drawer in his house and deposits it in a savings account, the composition of the money supply immediately changes, and the size of the money supply may eventually alter as well. Demonstrate and explain how this activity may affect the money supply in an economy.
Use the graph to explain why changes in the supply of money affect the quantity of money demanded.
According to the quantity theory of money, what must the growth rate of the money supply be given the following information? The growth rate of real GDP is 1.0%. The growth rate of nominal GDP is 3.8%. The nominal interest rate is 7.1%. The real interest rate is 4.3%. The money supply (M2) is $10,612(in billions) According to the quantity theory of money, the growth rate of the money supply must be___%. (Round your answer to the nearest tenth.)
According to the quantity theory of money, what must the growth rate of the money supply be given the following information? The growth rate of real GDP is 1.0%. The growth rate of nominal GDP is 3.8%. The nominal interest rate is 5.6%. The real interest rate is 2.8%. The money supply (M2) is $10,612 (in billions) According to the quantity theory of money, the growth rate of the money supply must be .......%. (Round your answer to the nearest tenth.) According to the quantity theory of money, what is the inflation rate? Use the information given above and calculate the inflation rate. According to the quantity theory of money, the inflation rate is ........%. (Round your answer to the nearest tenth.)
The demand for money is given by Md = $Y (0.3-i), where $Y = 120 and the supply of money is $30. What is the equilibrium interest rate? If the central bank wants to decrease i by 2%, at what level should it set the supply of money?
What Is the relation between the money supply and the interest rate in an economy. Explain in detail.
Wouldn't the answer for this one be an increase in price level since we have an increased demand for money? I'm only given one attempt at this; please help asap.
♫ The following graph represents the money market in a hypothetical economy. As in the United States, this economy has a central bank called the Fed, but unlike in the United States, the economy is closed (that is, the economy does not interact with other economies in the world). The money market is currently in equilibrium at an interest rate of 5% and a quantity of money equal to $0.4 trillion, as indicated by the grey star. INTEREST RATE (Percent) 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 0 Money Demand 0.1 Money Supply 0.2 0.3 04 0.5 MONEY (Trillions of dollars) 0.6 0.7 0.8 14 New MS Curve + New Equilibrium Suppose the Fed announces that it is lowering its target interest rate by 25 basis points, or 0.25 percentage point. To do this, the Fed will use open- market operations to money by the public. the

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Suppose that the supply of credit cards is given by (1/201) X =q, the nominal interest rate is 0.09, real GDP is Y = 53, and the price level is P = 101. What must be the quantity of money supplied for this money market to be in equilibrium. Round your answer to the nearest whole number.