What is the difference between portfolio and transactions theories of money demand.

What specific actions could the Federal Reserve take to decrease the money supply and therefore raise interest rates to enact Contractionary Monetary Policy?

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?

How does based ruled monetary policy differ from discretionary monetary policy ?

What are the terms in this question ? A liquidity trap is a situation where a portion of the moneydemand curve becomes horizontal; people are willing to hold unlimited amounts of money at some low interest rate.

What are the main differences between Fisher’s and Friedman’s theory of the demand for money?

Don’t give irrelevant answer

why decreasing money supply will lead with the real interest rate equal with inflation rate

Most stores now have the technology to immediately deduct the value of your purchases from your checking account (or charge your credit card with equal speed). How might this affect the money market and the interest rate? Follow-up question: How would your answer to the previous question affect interest rates and income?