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Availability of credit cards so peopleneed to hold less cash

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Reference no: EM131301335

Carefully explain the impact on the money demand, money supply, equilibrium interestrate and the quantity of money due to each of the following:[Diagrams not required]

(a) The changes in bank regulations expand the availability of credit cards so peopleneed to hold less cash.

(b) During a period of rapid inflation the central bank increases the reserverequirement.

(c) The economy recently experienced an increase in the number of tourist arrivals,increasing income throughout the island.

(d) Oil prices on the world market increase, causing domestic prices to increase

Reference no: EM131301335

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