Assuming Everything Else Held Constant,suppose There Is an Increase in the Demand

question 62

Essay

Assuming everything else held constant,suppose there is an increase in the demand for money.
(A)Use a supply and demand diagram to show what will happen to the equilibrium interest rate if the supply of money is fixed.
(B)If there was an increase in money demand and the interest rate was fixed,what would happen to the money supply? Explain how the change in money supply would come about.

---

Definitions:

Principle Of Randomness

The concept that outcomes or events cannot be predicted with certainty due to the random nature of certain processes, often used in scientific research and statistical analysis.

Polling

The process of conducting surveys to collect public opinion or predict the outcome of an election.

Fourteenth Amendment

An amendment to the U.S. Constitution that grants citizenship to all persons born or naturalized in the United States, including former slaves, and guarantees all citizens "equal protection of the laws."

Civil Rights

The rights of individuals to receive equal treatment (and to be free from unfair treatment or discrimination) in a number of settings – including education, employment, housing, and more – based on certain legally-protected characteristics.