Monthly Archives: November 2016

How rapidly has the money supply (M1) grown during the past

How rapidly has the money supply (M1) grown during the past twelve months? State the rate of growth (use http://www.federalreserve.gov/releases/h6/) and the most recent release, use the seasonally adjusted figures. Calculate the rate of growth across the year by taking … Continue reading

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What impact will an unanticipated increase in the money supply have

What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain. Here’s the SOLUTION

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ECON 214 Problem Set 5 -

ECON 214 Problem Set 5 Complete all questions listed below. Clearly label your answers. 1. What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How … Continue reading

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