| Question | What would be the effect of each of the following on the money demand, M1 (with other things held equal) ? a. An increase in real GDP b. An increase in the price level c. A rise in the interest rate on savings accounts and Treasury securities d. A doubling of all prices, wages, and incomes (Calculate the exact effect on the money demand.) e. An increase in the interest rate banks pay on checking accounts |
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| Subject | business economics |
