1
answer
0
watching
438
views
12 Sep 2018
A) When the real economy expands (Y rises), the demand for money expands. As a result households hold more cash and the supply of money expands.
B) Inflation, a rise in the price level, causes the demand for money to decline. Because inflation causes money to be worthless, households want to hold less of it.
C) If the fed buys bonds in the open market interest rates will no doubt rise.
A) When the real economy expands (Y rises), the demand for money expands. As a result households hold more cash and the supply of money expands.
B) Inflation, a rise in the price level, causes the demand for money to decline. Because inflation causes money to be worthless, households want to hold less of it.
C) If the fed buys bonds in the open market interest rates will no doubt rise.
1
answer
0
watching
438
views
For unlimited access to Homework Help, a Homework+ subscription is required.
Hubert KochLv2
13 Sep 2018