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Money and Inflation

Question # 00435630
Subject: Economics
Due on: 12/03/2016
Posted On: 12/03/2016 06:25 PM

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Carefully explain the impact on the money demand, money supply, equilibrium interest rate and the quantity of money due to each of the following.  Diagrams not required.

a. The changes in bank regulations expand the availability of credit cards so people need to hold less cash.

b. During a period of rapid inflation the central bank increases the reserve requirement.

c. The economy recently experienced an increase in the number of tourist arrivals, increasing income throughout the island.

d. Oil prices on the world market increase, causing domestic prices to increase.

Tags inflation money increase money prices bank recently economy experienced reserve inflation central increases requirement tourist world market causing domestic island income rapid arrivals increasing number cash rate quantity following nbspdiagrams equilibrium supply

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Money and Inflation

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Posted On: 12/03/2016 08:13 PM
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