68 please? a movement up a stationary money demand curve 66. Now that fast food
ID: 1130671 • Letter: 6
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68 please?
a movement up a stationary money demand curve 66. Now that fast food places such as McDonald's are accepting credit card payments 0 the demand for money has not been affected because credit cards are not considered to be money è the demand for money has decreased ( the supply of money has increased, as there is unused cash. the demand for money has increased. 67. Suppose the economy experiences price inflation such that a typical basket of goods is now more expensive than it used to be. All else equal, we would expect: to shift outward. O an upward movement along a fixed money demand curve. O a downward movement along a fixed money demand curve. the demand for money to shift inward 68. An increase in the supply of money with no change in demand for money will lead to liin the equilibrium quantity of money and in the equilibrium interest rate. O a decrease; a rise O an increase; a fall @ a decrease; a fall O an increase; a rise 69, suppose the Federal Reserve has set a target for the federal funds rate oitially the equilibrium interest rate happens to be higher than the target interest rate, then the Federal co the left, and raise the interest rate to the target rate O sell Treasury bills in the open market, increase money supply shit he supply of money e purchase Treasury bills in the open market, increase money supply. shift the supply of money curve to the right, and lower the interest rate to the target rate. 0 purchase Treasury bills in the open market, decrease money sypply, shift ane supaly of money curve to the left, and lower the interest rate to the target rate. curve sell Treasury bills in the open market, decrease money supply/ shift thel sepply or mney curve to the left, and raise the interest rate to the target rate. 70. Figure: The Money Supply and Aggregate Demand Remaining: 54:01 Start: 6:46 PMExplanation / Answer
Increase and fall(if we pump money into economy without having any demand,quantity increases but as there is no demand for money,interest rates fall to attract more people)
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