Should monetary authority increase or decrease growth money

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Reference no: EM13210024

1. What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain

2. How rapidly has the money supply (M1) grown during the past twelve months? State the rate of growth and the most recent release, use the seasonally adjusted figures. Calculate the rate of growth across the year. Given the state of the economy, should monetary authorities increase or decrease the growth rate of money? Explain why.

Reference no: EM13210024

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