The Money Supply:

The table below shows the current money demand in the economy. Assume the money supply is $600 billion.   Money Market

Write a money demand function and explain the determinants of money demand.

Draw diagrams illustrating the impact on the demand for money, the supply of money and the equilibrium interest rate, of each of the following. Explain what is going on in the money market in each case. (a) The central bank sells securities on the open market. (b) The economy grows (GDP increases) but the central bank moves to keep interest rates constant.

When money is neutral, which of the following increases when the money supply growth rate increases? real output growth real interest rates nominal interest rates the money supply divided by the price level

What is the difference between temporary and permanent changes in money supply?

total demand for money  (Click for List) the amount of money people want to hold as a store of value, is the sum of the transactions demand for money and the asset demand for money. M2++ raises the interested rate

Using the appropriate diagram, show and explain the effect of the increase in income taxes on the equilibrium in the money market.

Analyze the effect of fiscal and monetary policy in Zimbabwe’s money supply

Discuss the functions of money and evaluate how theories of money demand explain them