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Impact on supply of money Choose... impact on equilibrium interest rate Choose... Impact on quantity of money Impact on demand for money Choose... Choose... 4 4) 4) 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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Please review the question attached (question #8) and fill in the blanks using the possible answers provided (Possible answers for question #8

How will each of the following scenarios impact the market for money
The central bank increases the discount rate at the same time there is a discovery of gold that fuels inflation.
Impact on supply of money
Choose...
Impact on equilibrium interest rate Choose...
Impact on quantity of money
Impact on demand for money
Choose...
Choose...
♦

Choose...
Choose...
decrease equilibrium quantity of money
shift outwards / to the right
decrease equilibrium interest rate
equilibrium quantity of money unchanged
increase equilibrium quantity of money
movement along the curve
equilibrium interest rate unchanged
increase equilibrium interest rate
shift inwards/ to the left

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