The central bank conducts an open market sale of securities at the same time a natural disaster negatively affects economic activity.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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ase equn
How will each of the following scenarios impact the market for money
The central bank conducts an open market sale of securities at the same time a natural disaster negatively
affects economic activity.
Impact on supply of money
Impact on equilibrium interest rate
Impact on quantity of money
Impact on demand for money
Choose...
Choose...
Choose...
Choose...
◆
4)
<>
AP
수
Transcribed Image Text:on page ase equn How will each of the following scenarios impact the market for money The central bank conducts an open market sale of securities at the same time a natural disaster negatively affects economic activity. Impact on supply of money Impact on equilibrium interest rate Impact on quantity of money Impact on demand for money Choose... Choose... Choose... Choose... ◆ 4) <> AP 수
Choose...
Choose...
decrease equilibrium quantity of money
decrease equilibrium interest rate
movement along the curve
shift inwards / to the left
increase equilibrium interest rate
increase equilibrium quantity of money
equilibrium interest rate unchanged
equilibrium quantity of money unchanged
shift outwards / to the right
G
Transcribed Image Text:Choose... Choose... decrease equilibrium quantity of money decrease equilibrium interest rate movement along the curve shift inwards / to the left increase equilibrium interest rate increase equilibrium quantity of money equilibrium interest rate unchanged equilibrium quantity of money unchanged shift outwards / to the right G
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