Sweden, one of the most technologically advanced nations on the planet, is paving its way to becoming the world's first cashless society by March 2023. By then, by March 24, 2023 to be precise, in Sweden, cash will no longer be accepted as a means of payment. In general, cash is already a no-go in Sweden. There is a unique law in Sweden that enables merchants to make customers pay electronically despite the status of cash as a legal tender. Sweden's culture of innovation and being early adopters of technology coupled with the nation's high-quality of life have played a paramount role in the transition. a. If this situation persists, how will the Demand/ Supply of Money in Sweden change and why? [Draw appropriate diagram to support your answer] b. How does the above event change the equilibrium condition of Money market in Sweden? [Draw appropriate diagram to support your answer] c. To increase the process of going cashless, if the Government of Sweden has decides to reduce the money supply in the economy, which specific policy should the government adopt in this regard? What are the actions that the government might take following the policy? Explain.
Sweden, one of the most technologically advanced nations on the planet, is paving its way to becoming the world's first cashless society by March 2023. By then, by March 24, 2023 to be precise, in Sweden, cash will no longer be accepted as a means of payment. In general, cash is already a no-go in Sweden. There is a unique law in Sweden that enables merchants to make customers pay electronically despite the status of cash as a legal tender. Sweden's culture of innovation and being early adopters of technology coupled with the nation's high-quality of life have played a paramount role in the transition.
a. If this situation persists, how will the Demand/ Supply of Money in Sweden change and why? [Draw appropriate diagram to support your answer]
b. How does the above event change the equilibrium condition of
c. To increase the process of going cashless, if the Government of Sweden has decides to reduce the money supply in the economy, which specific policy should the government adopt in this regard? What are the actions that the government might take following the policy? Explain.
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