4) In a money market equilibrium diagram, show the effect of an increase in real money demand, i.e., an increase in L function for any value of i, on the nominal interest rate.

1. In the UK, during the Fall 2017 the key interest rate increased by 25 basis points. For a considerable time, the inflation rate was close to 3% and the pound depreciated due to Brexit and substantial debt. Use graphs and models to analyse the effects on all markets (real money balances market, IS-LM model). Explain effects on real interest rate, money demand and money supply.

4. Velocity and the quantity equation Consider a simple economy that produces only air fryers. The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2020, the money supply was $200, the price of a air fryer was $5.00, and the economy produced 600 air fryers. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. Quantity of Money Year (Dollars) Velocity of Money Price Level (Dollars) Quantity of Output (Air fryers) Nominal GDP (Dollars) 2020 200 5.00 2021 208 15 5.00 600 600 from 2020 to 2021. Since air fryer output did not change from 2020 to 2021 and the velocity of in changes in the price level. The inflation rate from The money supply grew at a rate of money the change in the money supply was reflected 2020 to 2021 was

Refer to Figure 11.1. A movement from Point D to Point A can be caused by   Group of answer choices a decrease in nominal aggregate output. an increase in income. a decrease in the interest rate. an increase in the interest rate.

13) The aggregate demand curve shows a(n). relationship between the A) positive; interest rate and planned investment B) negative; interest rate and planned investment C) negative; interest rate and money demand D) inverse; price level and aggregate output

3.Consider an independently run hotel in Krems and briefly discuss how it might be affected by the following scenarios:   a) A rise in interest rates b) A fall in unemployment c) A fall in the exchange rate (i.e., the value of the euro decreases)  d) A rise in inflation

14) The level of aggregate output demanded will increase if A) the money supply is increased. C) All, A, B, and D, are very likely. B) the interest rate is reduced. D) net taxes are reduced.

Assume the money supply is $1,000, the velocity of money is 12, and the price level is $4. Using the quantity theory of money: (a) Determine the level of real output. (b) Determine the level of nominal output. (c) Assuming velocity remains constant and that the economy is at full-employment equilibrium, what will happen if the money supply rises by 10%?

Monetary economics.

Analyse the impact of these events on the price level and total output of an economy in the short term. If policymakers were to use monetary policy to actively stabilize the economy, in which direction should they move the money supply and interest rate and show the effects of these policies? Please discuss your answers with appropriate graphs. - (a) The government raises taxes and reduces expenditures to balance its budget. (b) Enterprises in the economy are pessimistic about the economy in the future. - (c) Foreigners increase their taste for domestically produced beef. (d) The money wage rate rises.