Nominal interest rate (percent per year) 12- a C The graph shows a demand for money curve. Draw a new demand for money curve that shows the effect of an increase in real GDP. Label it MD₁. Draw a demand for money curve that shows the effect of an increase in the number of families that have a credit card. Draw this demand for money curve in relation to the original demand for money curve, MD. Label the new curve MD₂ 10- 8 - 2- 2 4 6 8 MD 10 12 Quantity of money (trillions of dollars) >>> Draw only the objects specified in the question.

Nominal interest rate (percent per year) 12- a C The graph shows a demand for money curve. Draw a new demand for money curve that shows the effect of an increase in real GDP. Label it MD₁. Draw a demand for money curve that shows the effect of an increase in the number of families that have a credit card. Draw this demand for money curve in relation to the original demand for money curve, MD. Label the new curve MD₂ 10- 8 - 2- 2 4 6 8 MD 10 12 Quantity of money (trillions of dollars) >>> Draw only the objects specified in the question.

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

The graph shows a demand for money curve.
Draw a new demand for money curve that shows the effect of an increase in
real GDP. Label it MD₁.
Draw a demand for money curve that shows the effect of an increase in the
number of families that have a credit card. Draw this demand for money curve
in relation to the original demand for money curve, MD. Label the new curve
MD2.
12-
10-
8-
Nominal interest rate (percent per year)
6-
4-
2-
0
2
4
6
8
MD
10
12
☑
Quantity of money (trillions of dollars)
>>> Draw only the objects specified in the question.

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