Find an article (newspaper, magazine, or online) which represents a shift of demand or supply for money.  Use the article to answer the following questions.  

1. Which of the following four shifts does your article illustrate? 

(a) A shift of the money supply curve to the left; 

(b) A shift of the money supply curve to the right; 

(c) A shift of the money demand curve to the left; 

or (d) A shift of the money demand curve to the right?

2.  What determinant of demand or supply caused the shift you chose in number 1 above?  The demand for money changes as people receive larger incomes, as the speed with which they used money changes, and as the inflation rate changes.  The supply of money is determined by the actions of the Federal Reserve System, the willingness of the finanical system (banks) to make loans, and individual perceptions of the future course of the economy.

3.  What is the effect on interest rates (or expectations about interest rates) that results form this shift in money demand or supply? Be sure the changes are consistent with the shift you chose in number 1 above.

4.  Indicate the source (name of newspaper or magazine or website address), title (headline or article name), date, and page for the article you have chosen. 

Answer rating: 100% (QA)

Once youve found an article consider the following steps to answer your questions 1 Iden... View the full answer