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How supply of money influences interest rates

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Analysis of Monetary Policy

How supply of money influences interest rates (p. 366-67).

II. Quantity of Money that People Desire to Hold

Give factors that have an influence - there are three of them (pp. 364-5)

III. Tools of Monetary Policy

Give the tools (p. 366). Then explain how open market operations affect money supply and interest rates. (pp. 366)

IV. Equation of Exchange

What does each part mean and what equation demonstrates (pp. 371).

The rest of the points are for organization and mechanics (10 points), citations (5 points), and submitting by deadline (5 points

This is the book we use, but it does not all need to come from this book.

Roger Leroy Miller, Economics Today - Eighteenth Edition. Person Education, Inc. 2016, 294-304

Verified Expert

This assignment is about the money supply in the economy and how it affects the interest rates in the economy. It also discusses about the monetary policy tools of the central bank. It also discusses the three motives of holding money or the demand for money and the last question deals about the explanation about the equation of exchange.

Reference no: EM131305935

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inf1305935

12/10/2016 6:31:04 AM

2 to 3 pages double spaced with the exact criteria 1. There are in all four points. we need to write 700 words for all. 2. 3 pages maximum solution is required then we can split the questions accordingly. 3. Page numbers are given in assignment and book is also mentioned, we need to refer to the specified page numbers and then answer.

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