5
International Economics (Fach) / Money, Interest Rates, and Exchange Rates (Lektion)
- By which factors in the demand of money determined?(3) Interest rate Price Level Real national income
- What does an increase of the money supply do the interest rate and the price level+output? lowers interest rate, price level and output
- What does an increase of output do to the interest rate, price level and output? it raises the interest rate, the price level and the outout
- characteristics Price level (3): short run prices are sticky, long run flexible increase in the money supply, will raise prices in the long run rising exchange rate changes exchange rate expectations
- How does a raise of the money supply influence the exchange rate? an increase in the money supply will rise exchange rate in the short run
Anzeige