When a consumer withdraws $200 from her savings account and deposits When a consumer withdraws $200 from her savings ac

When a consumer withdraws $200 from her savings
account and deposits the $200 into her checking account
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Question 11 pts When a consumer withdraws $200 from her savings
account and deposits the $200 into her checking account, M1
increases by $200 and M2 remains unchanged.
M1 and M2 both fall by $200.
M1 is inchanged but M2 decreases bu $200.
M1 and M2 both increase by $200. Flag this Question Question 21 pts
The demand for real money balances is a decreasing function of real
income
housing prices
the term spread
the nominal interest rate. Flag this Question Question 31 pts
The demand for real money balances is an increasing function of the
nominal interest rate.
the overall level of prices in the economy.
the expected rate of inflation.
real income Flag this Question Question 41 pts
Consider an economy where nominal money supply is M = 10 and
nominal money demand is given
by the expression:
Md= 3y 100i
If the price level is P = 10 and real income is y = 5, what is the
equilibrium level of nominal interest rates, i? 5%
8%
3%
6% Flag this Question Question 51 pts
Consider again an economy where the nominal money demand is
given by the expression:
Md= 3y 100i
The price level is P = 10 and real income is y = 5.
Suppose the central bank wants to push short term nominal interest