Suppose that the nominal interest rate is such that there is an excess demand for money. Explain

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Suppose that the nominal interest rate is such that there is an excess demand for money. Explain the adjustment process that takes place as the money market moves to equilibrium.

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Foundations of Macroeconomics

ISBN: 978-0132831000

6th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: Mar 04, 2016 07:43 AM

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Suppose that the nominal interest rate is such that there is an excess demand for money. Explain

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With an excess demand for money the interest rate is below its equilibrium level People ...View the full answer

Foundations of Macroeconomics

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