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The introduction of ATMs, credit cards and e-wallets have reduced the demand for money at any given level of income and interest rate. Using AS-AD and IS-LM framework:
a) Show how this evolution in the money market has impacted the output, prices and interest rate in the economy in the short-run. Illustrate using a diagram.
b) Show if this evolution will have any impact on the output, prices and interest rate in the medium-run. Illustrate using a diagram.
c) Comment on how various components of demand will change in the medium-run; and also on the neutrality of money within the context of this example
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Experts predict that by 2016, more than 25 million people will use exchanges to buy health insurance. Doing an online search discuss the following:
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