Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. 3. using the money supply (m1) model developed in

3. Using the money supply (M1) model developed in class, explain the likely effects on the...

70.2K

Verified Solution

Question

Economics

3. Using the money supply (M1) model developed in class, explainthe likely effects on the money supply of the following. Be sureyour answer indicates what changes in the model. (4 pointseach)

a. the U.S. Treasury sells new U.S. bonds at auction and doesnot spend the proceeds

b. more stores are willing to accept debit or credit cards fortransactions

c. banks start paying a higher interest rate on checkabledeposits

Answer & Explanation Solved by verified expert
3.7 Ratings (383 Votes)
aWhen US treasury sells bonds at auction and doesnt spend the proceeds the money supply decreases resulting in a leftward shift in the money supply curve as a result quantity of money in the economy    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company for...

Biology
1.2K views

Which of the following is NOT true of the sympathetic nervous system with regards to...

Physics
1.2K views

8 Four identical plates each of area A on one side are arranged as shown...

Basic Math
1.2K views

A person wants to purchase a DVD drive for his laptop computer Assume that 81...

Basic Math
1.2K views

if csc (x)=7, for 90

Calculus
1.2K views

Find the derivative of the function f x sqrt x 10 oot 3 x

Calculus
1.2K views

Let R be the region bounded by y x x 1 and y 0 Use...

Accounting
1.2K views

Blossom Manufacturing produces basketballs used for indoor and outdoor games. The company has...

Accounting
1.2K views

The Boning Co., an aircraft manufacturing company, is considering an expansion in the production of...

Accounting
1.2K views

Doornbos Company purchased $120,000 of inventory on October 19, 2017. The invoice offered credit terms...

Finance
1.2K views

Please show work. That's where I don't understand. 3. A project costs $5,000...

Finance
1.2K views

Help Se You are asked to evaluate the following two projects for Boring Corporation. Use...