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Money market in equilibrium economy

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Reference no: EM1374327

1. Suppose that the money market is initially in equilibrium for an economy. Describe with the aid of a diagram how market adjusts to
[a] an increase in money supply [b] an increase in real GDP

2. Select any economy in the world.
What measures did the country's central bank adopt in the 2008 period, in the face of the worsening global financial crisis? Name 2-3 key measures & describe briefly how it was implemented.
Which of these measures were effective? Which ones were not? Provide an economic explanation of why do you think so.

 

Reference no: EM1374327

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