Business, 26.03.2020 19:09 hayesvolcano

The basic determinant of the transactions demand for money is the interest rate. reserve ratio. level of nominal GDP. price level. b. The basic determinant of the asset demand for money is the interest rate. reserve ratio. level of nominal GDP. price level. c. Total money demand is the horizontal sum of the transactions demand for money and the asset demand for money. vertical sum of the transactions demand for money and the asset demand for money. horizontal sum of the consumer demand for money and the producer demand for money. vertical sum of the private demand for money and the public demand for money. d. The equilibrium interest rate is determined at the intersection of the total demand for money curve and the supply of money curve. by the Fed. to fluctuate over time. at the intersection of the aggregate demand and aggregate supply curve. e. Suppose there is an increase in the total demand for money. In this case, the equilibrium interest rate will rise. the equilibrium interest rate will fall. the money supply will rise. the money supply will fall.

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