The money market has two sides: a demand side and a supply side. 1. Draw a money
Question:
1. Draw a money demand curve. Label each axis.
2. Draw a money supply curve. Label each axis.
3. Explain what will happen if there is a shortage of money balances.
4. Explain what will happen if there is a surplus of money.
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1 The above figure shows the demand curve for money The negative slope of the curv...View the full answer
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