interest rates and money supplygreenspun.com : LUSENET : Economic History (and Related Observations) : One Thread
(a) Describe the components of equation Y = C+I+G+(X-M) with examples from a ‘real world’ economy (Australia or other).
(b) Using the demand and supply for money model, do the following:
(i) Show how interest rates are determined.
(ii) Show the effect in your graph of an increase in the money supply and describe the money market adjustment process to a new equilibrium interest rate.
-- Manish Talwar (firstname.lastname@example.org), May 26, 2004
i need the answer for the question
-- khaja (email@example.com), June 08, 2004.