Assuming everything else held constant, suppose there is an increase in the demand for money.
(A) Use a supply ant demand thiaran to show what wril happen to the equulibrium interest rate if the supply of money is Eixed
(B) If there war an increase in money demand and the interest rate was Fixed what wauld happen to the money supply? Exalain how the chanee in money supply wauld come about

Question

Assuming everything else held constant, suppose there is an increase in the demand for money.
 (A) Use a supply ant demand thiaran to show what wril happen to the equulibrium interest rate if the supply of money is Eixed
(B) If there war an increase in money demand and the interest rate was Fixed what wauld happen to the money supply? Exalain how the chanee in money supply wauld come about

Quizplus · Accepted Answer

The Answer of Assuming everything else held constant, suppose there is an increase in the demand for money.
 (A) Use a supply ant demand thiaran to show what wril happen to the equulibrium interest rate if the supply of money is Eixed
(B) If there war an increase in money demand and the interest rate was Fixed what wauld happen to the money supply? Exalain how the chanee in money supply wauld come about

Assuming Everything Else Held Constant, Suppose There Is an Increase