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In Each of the Following Cases,one Factor Affecting Money Demand

question 21

Essay

In each of the following cases,one factor affecting money demand changes.You must tell how the second factor would have to change if real money demand were to remain unchanged overall.
a.Expected inflation rises;real income ________.
b.Nominal interest rate on money rises;wealth ________.
c.Risk on stocks and bonds rises;efficiency of payments technology ________.
d.Risk on money rises;real interest rate ________.
e.Liquidity of nonmonetary assets rises;expected inflation ________.
f.Wealth rises;risk on nonmonetary assets ________.


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