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Why is M1 considered a narrower definition of the money supply then M2?
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Why cheques are not considered as part of money supply?
what is a cheques
Why is money considered a capital resource?
BY definition, capital resource means physical money.
Will money supply increase decrease or stay the same if banks cannot find borrowers?
inflation It depends on the definition of money you are using. If your definition includes "bank credit", the supply clearly falls. If you are using M0 money defition, is does not matter (if the question involves the IS-LM graph, use this answer)
Are treasury bills considered in M1 or M2 money supply?
neither
If there is high inflation the federal reserve will want to increase the money supply?
One of the two (according to the Keynesian) reason that can create high inflation is attributed to the increased money supply where "too much money chasing too few goods" Therefore, to reduce inflation, the Federal reserve would want to DECREASE the money supply. However, the increase in money supply can create stimulus demand and depreciate the exchange rate of the US Dollars which are considered (although questionable) beneficial to the US economy.
Why cheques are not considered as part of money supply?
what is a cheques
Why is money considered a capital resource?
BY definition, capital resource means physical money.
Will money supply increase decrease or stay the same if banks cannot find borrowers?
inflation It depends on the definition of money you are using. If your definition includes "bank credit", the supply clearly falls. If you are using M0 money defition, is does not matter (if the question involves the IS-LM graph, use this answer)
Are treasury bills considered in M1 or M2 money supply?
neither
If there is high inflation the federal reserve will want to increase the money supply?
One of the two (according to the Keynesian) reason that can create high inflation is attributed to the increased money supply where "too much money chasing too few goods" Therefore, to reduce inflation, the Federal reserve would want to DECREASE the money supply. However, the increase in money supply can create stimulus demand and depreciate the exchange rate of the US Dollars which are considered (although questionable) beneficial to the US economy.
How does raising the discount rate affect the money supply?
Decreases the money supply
Do you have supply of money in India ppt?
there are four measure of money supply in india,
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
What if there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there an increase in the money supply that causes prices to rise and leads to inflation what happens to money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to the money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
